Thread Started by #manish.experis

Hi Everyone,
I am in the process of designing a recovery process for my organization,need to understand how does it function with various organizations & also need to know on legal implications aspect ?
25th January 2012 From India, Delhi
Might help you....
White Eagle: Recovery from Ex-employees
White Eagle: legal aspect for Notice pay
25th January 2012 From India, Hyderabad
Dear Manish

Apart from White Eagles' informative attchment on recovery of dues, I may chip in with the following information in the context of legal implications.

1) The P.F amount cannot attached or charged even under a court's decree/order against any debt or liability incurred by an employee as per Sec.10 of the P.F Act.

2) similarly gratuity cannot be for feited agaisnt any financial loss caused by an employee unless he is found guilty of any misconduct in adomestice enquiry resulting in such financial loss as per Sec.4(6) of the Payment of Gratuity Act 1972.

3) The payment of Bonus Act permits bonus to be adjusted agaisnt any loss recoverable from an employee due to misconduct of an employee as per Sec.18 of the Bonus Act.

4)Other dues payable to the employee like leave encashment or arrears of salary if any can be adjusted against any dues paybale by him to the company under the right to general lien.

5)Set up an NOC procedure from the department in which the employee is working before relieving him from his servcie.

B.Saikumar

HR & labour Law Consultant

Chipinbiz Consultancy Pvt.ltd

Mumbai

Mob: 09930532927
25th January 2012 From India, Mumbai
Hi All, Kindly share some recovery letter formats which would be sent to the employee & also a standard operating procedure which should be followed. Thanks.
5th February 2012 From India, Delhi
You may find this blog as useful 'Are we tracking employee exits'
5th February 2012 From India, Bangalore
I have just resigned from an organisation. While taking appointment in the organization, almost six years back, the appointment letter, which I have signed, states that if I leave the organization for any reason, I cannot take a competitive assignment or approach their clients for business.
I have joined an organization which is obviously into the competitive business, as the organization has taken me up for the core expertise I have in the field. Now the old organization is holding back my Gratuity amount for doing competitive activities.
Request your advice.
6th February 2012 From India, Mumbai
Dear Saikumarji,
I have just resigned from an organisation. While taking appointment in the organization, almost six years back, the appointment letter, which I have signed, states that if I leave the organization for any reason, I cannot take a competitive assignment or approach their clients for business.
I have joined an organization which is obviously into the competitive business, as the new organization has taken me up for the core expertise I have in the field. Now the old organization is holding back my Gratuity amount for doing competitive activities.
Request your advice.
Nand
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9819441360
6th February 2012 From India, Mumbai
Dear Nand Kishore

The kind of stipulation in the letter of appointment that you cannot join the competitor even after leaving the service of the company is not sustainable in law as it is opposed to the provisions of the Indian Contract Act 1872 and also offends your fundamental right to pursue any trade or profession, guaranteed under the Constitution. Please ensure that you have complied your part of the contract with regard to notice etc. Further , the gratuity becomes payable on the employee ceasing to be in the servcie of the company and the employer shall arrange to pay gratuity within 30 days of it becoming payable as per Sec.7 of the Gratuity Act. The failure to pay gartuity amounts to unlawful forfeiture of it in violation of Sec.4(6) of the Gratuity Act.The company is liable to pay interest on the gratuity amount so held by them. You can send a letter to the employer asking them to make necessary papers available to you to makre an application for gartuity.If you have already made such application and more than one month has passed, you can send a reminder to the company in this regard.If they still are adamant, You can file an application before the Controlling Authority who is normally the Asst.Commissioner of Labour (State) seeking direrction to the company to pay the gartuity.

B.Saikumar

HR & Labour Law consultant

Mumbai

Tel: 09930532927
6th February 2012 From India, Mumbai
Dear Saikumarji,
Thank you very much for your clarifications and support. The HR of my previous company, has sent me a letter, asking explanation for conducting competitive activities in voilation of my employment contract with them. They have mentioned in the letter that why a legal action should not be initiated againnst me and also that they reserve the right to keep all my pending disbursements in abeyance.
Any way, as you have guided, forgetting about the explanation, I will send them a letter to disburse my gartuity. I will come to you if I need any legal help on this issue.
Thanks & Regards,
Nandkishor
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9819441360
12th February 2012 From India, Mumbai
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