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Dear Friends,

I have a simple but an important question to which i faced currently. The descriptive story is given below -

The company, a pvt ltd company and a start-up, was not able to pay the due salary to employees on time to the extent of non payment of three to four months salary at a given point in time. Looking at the financial conditions the employee decides to leave and join another firm. The employee resigns and serves his term as per the agreed term period with the employers. Employee is updated, verbally, by the employers that the company currently does not have enought funds to clear his last three months salary, however, will complete the full and final settlement covering his past dues within 20 days from last working day.

Now the company directors are not replying nor are they answering their calls.


the questions are as listed below -
  1. How can the employee seek the payment of his past dues, experience letter and clearances from the employer? is there a legal re-course, are the directors/ company obligated to pay the employee?
  2. How does he proceed to file his income tax returns as he does not have a financial statement nor a form 16? PS: the company did not provide salary slips due to its start-up nature.
Looking forward to answers to the above questions.

From Japan
1. Company is liable to pay all the amount that is due to employee as any point of time (if the employee has given the required notice period before joining another company).

2. While filing for income tax, we cannot assume and presume before filing. We should file only which was given to us (amount received through salary). When we receive this amount at later stages, accordingly at the next filing we can mention the same.

3. If there are no proof that the amount Final Payment) is due, Ex-employee can walk up to his previous office and discuss the matter face to face which the head HR or with the directors regarding his final payment.

4. You can produce your salary statement, where one can show the non credits of salary, if salary accounts are not there, then atleast some acknowledgement would be taken from the employee at the time of paying monthly salary (one can refer to that also).

5. Finally one can demand the management to show the proof of paying the final payment.

Regards
Sanjay

From India, Hyderabad
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