Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Finance, Hr, Sectarial Practices, Law And
+2 Others

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Is organization legally bound to pay the arrears of minimum wage Rs.7,000 to the employees who have left the organization during July-November-2010?

Dear Members,
I would like to know the above query from group members that what practice H.R Deptt will follow in compliance of labour laws? The notification was issued on 15th November 2010 w.e.f 1st July 2010. Plz advice me with reference to Pakistani Laws.
Thanks & Regards,
Humayoun Younus

Any such arrears need to be paid; or kept separately in the "Unpaid Wages" account. These should be reflected as "Contingent Liabilities" in the Annual Financial Statement.
I have no idea about the Pakistani Laws; but this is how it should be as per the HR and accounting conventions of most developed countries.
Warm regards.

Mr.Rajkumar has rightly adviced.
Further, whether these employee have left on their own? Were they workers? Whether they were on co. roll? what the appointment letter say about notice for leaving the service? Had the notice being served by them, before leaving?

Apart from what Raj has stated, it may be added here that the Employees dues are never time barred. These cannot be accounted for as "Bad Debts" and cannot be written off. This liability can only be settled by making payment to the concerned employees. In India, there is a law that if the dues remain unpaid for more than three years, these have to be deposited with the Government Authorities into a Labour Welfare Fund. The concerned employees can then claim the same from the fund, when he comes to know about the same.
Dear Surendra
Thank you very much, for pointing out a benevolent, employee-friendly provision under the indian labour laws; which I had missed.
You are perfectly right; such unpaid wages need to be deposited after three years in the Govt's Labour Welfare Fund.
Warm regards.

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