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syed allham (csr)     08 January 2017

Unpaid salaries - handover company laptop when resigned.

I am a resident of Bengaluru and currently working in a private limited e-commerce start-up since 6 months. Our employer is currently running out of funds and investments and it's been more than 2 months none of the employees have received their salaries. Now I've fortunately got a job in another company and I wish to resign from the current company; How should I go about the resignation when my salary is unpaid and there is no sight of settlement happening sooner, Should I hand over the company laptop when leaving or should not,  as the asset value doesn't even cover my 1 month salary? And what terms or conditions should I state in my resignation letter, What if the employer objects from giving the relieving letter because of not handing over the laptop, How should handle it?. I would really appreciate if the honourable members help me in my distress with their valuable suggestions. Thank you



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 9 Replies

Ritesh Maity (Labour Law Advocate)     08 January 2017

Since you have got a job it is better for you to move on.

Coming back to your current employer, there are two issues - oustanding salar - resignation and submission of any asset. 

I hope you do not require any documents (reliveing/ experience etc.) from your current company in order to join new company.

In such situation write a letter to your current company stating that you are resigning with immediate effect since salary for the months of ..... have not yet been paid and your livelihood is at stake etc (pointing out that you are facing financial hurdle due to non payment of salary). Apart from that also demand the outstanding salary and ask the company to make your full and final settlement. More importantly state that you are ready to hand over the charges and deposit/ refund the assets of the company which is with at the instructions of the company. Send this letter through speed/ registered post.

No payment of salary is illegal. So is keeping asset of the companywith yourself. 

 

syed allham (csr)     08 January 2017

Dear Ritesh Sir, Thanks for your valuable reply. The employer has to pay me near to 90K and the asset value is below 40k; I actually need the relieving letter for the new job. Any importance of sending the letter via post?; Or can I send it through email marking all the stakeholder?. Few situations below and need your opinion on the same.

1 - What if the employer seeks more time to settle the unpaid wages? What action should I take as an employee?

2 - What if the employer asks to deposit the asset (laptop) without settling my dues? 

3 - And lastly, if nothing works in my favor whom should i approach legally?

Thank you again for your valuable opinion and suggestion sir.

Ritesh Maity (Labour Law Advocate)     08 January 2017

Originally posted by : syed allham

Dear Ritesh Sir, Thanks for your valuable reply. The employer has to pay me near to 90K and the asset value is below 40k; I actually need the relieving letter for the new job. Any importance of sending the letter via post?; Or can I send it through email marking all the stakeholder?. Few situations below and need your opinion on the same.

Since you need relieving letter, you require a smooth exist. In that case you may not send a legal notice or say anything in harsh manner. But a simple letter is to be send highlighting all the legal point. You can certainl take help of lawyers.

Since your outstanding salary is Rs.90000/- and the value of laptop is Rs.40000/-, you cannot adjust the due amount with the laptop legally unless you have written permission of the company to do so.

Letters sent through speed/ registered post has more legal validity in the eye of law. Email can be sent to official ids, but chances are that email can be erased from inbox/ server. Proving that you send a letter through speed post is a lot easier than proving that you send an email and it was received by the company in future.

1 - What if the employer seeks more time to settle the unpaid wages? What action should I take as an employee?

2 - What if the employer asks to deposit the asset (laptop) without settling my dues? 

He has every right to say so. Legally speaking if the company does not pay your dues you can always approach appropriate authority, Similarly if you do not return the laptop to the company, the company can bring charges against you as it is the asset of the company (possibility of criminal charges). So you have to handle to tricky situation very carefull following all legal aspect. 

3 - And lastly, if nothing works in my favor whom should i approach legally?
Yes
Thank you again for your valuable opinion and suggestion sir.

Replies given in bold. Please consult a lawyer if required. 

1 Like

syed allham (csr)     08 January 2017

Dear Sir, Thank you for explaining in detail. I would like to tell you that 50 employees are facing the same issue like me; no one has received the salary for 2 months. So as a team should we follow the same legal route or there are other alternatives. Whom should we contact in Bangalore to get justice? 

Ritesh Maity (Labour Law Advocate)     08 January 2017

Initially you are required to send letters demanding the oustanding salary before taking action through court/ forum.

If you want to send notices yourself (in personal capacity), then all the 50 employees have to send it individually. If all employees decide to take legal route, then a common/ joint legal notice can be sent through lawyers on behalf of all employees.

Now, you are the best judge of your situation as to whether you want to remain soft and send invidual notice or take legal help and send notice through lawyer.  

Kumar Doab (FIN)     08 January 2017

Y

Mr. Ritesh has replied to points raised by you.

You may submit to the point and gentle communication narrating promise of paying salary/earned wages/other amounts on due date………………….i.e…………………….and mention that you have been regular in attending to office and performing your duties (download evidence of NO Tasks pending at your end and attendance, KRA’s, performance, NO stinkers/memo issued to you, appreciations, incentives, appraisals, rewards/awards) etc…………to the full satisfaction of employer.

However your salary/earned wages/other amounts have not been paid from the month of………………on due date………………….dated…………and next month……………… on due date………………….dated…….. and till dated……………………total dues are for ………………….months of Rs…………….

Following promises have been made to you by Mr/Ms………….designation…………..name of company…………on dated………….however these promises were never kept.

 

You can mention that you are facing acute financial hardship and have NO money to meet expenses to attend to office, your personal/family/social responsibilities…………………and your entire dues be paid within and upto dated……………( say next day/date)……………

 

Kumar Doab (FIN)     08 January 2017

In next communication you may clarify that since salary/earned wages/other amounts has not been made to you therefore you are unable to manage without payment of paying salary/earned wages/other amounts, and in such conditions (of breach of clauses of appointment letter and payment of earned wages) the clauses on notice period/pay have lost its significance and employer on its own may waive these off and relieve you by providing acknowledgment and acceptance of resignation without any notice period and waiver of notice period/pay, correct FnF statement showing payables by employer and employee and net amounts payable to you ( salary/bonus/leave encashment/incentives/OT/reimbursements etc ) , Form16 as per correct FnF statement, Service Certificate, Relieving letter, salary slips of all months, Pf a/c slips, ESIC card, handover of charge etc etc

 

These may be as good as Relieving Documents.

Relieving letter signifies that employee has separated and nothing is due against employee.

 

In case of employee having a liability employers usually adjust in FnF statement/settlement.

Many employers are known to insert such clause on ‘Set Off’ of dues in FnF dues/salary/terminal benefits etc etc …………………….

So employee can also approach with same term that the dues by employer be paid and till then assets are kept.

At the same time employer might have inserted clauses on assets and recovery of assets. These hold good when employee is at fault.

 

Thus it is upto your skill, aptitude to retain assets without any damage to you.

Courts of Law have been vested with power to recover.

Unpaid dues are debt on employer.

Provided employer has assets sufficient to pay the debt.

 

Kumar Doab (FIN)     08 January 2017

Another priority is to firm up your terms with next employer to whom you may explain the situation (preferably in writing) and place on record that you can provide ONLY copy of resignation and proof of its dispatch and nothing else till it is supplied to you by last employer and obtain confirmation (preferably in writing) that it shall not terminate you due to non submission of any other document e.g; Relieving Letter.

hina (student)     10 August 2018

 Hello Sir,
               I have worked for a client on 3rd party payroll and resigned due to  issue arised between me & employer ,i have the laptop of company for which i have signed undertaking doc to them, now they are asking to return the laptop but not agreed to releasing my expenses occurred on official meetings .Now they are sending the letters to me for returning the asset  otherwise go for legal action and then only will release my FNF, But my past experience with them was too bad they lied too much, even not released my expenses due since 4 months .Please advice should i return the asset and wait for the full and final amount or something else.


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