Octavious
Hr Manager
Teamgrouphr
Placement Consultancy
Globaloverseas144
Soical Compliance Auditing
Tajsateesh
Recruitment/talent Acquisition, Career Counselling
Kishore.Mavuri
Group Leader - Quality Management & Process
+5 Others

#Anonymous

Dear Forum Members,

I have been freelancing from a long time as a Video Editor. I usually take up work at home or work on contractual basis at the client side. Recently i encountered a fraud company who are not paying my dues. i was able to recover 50% of my income but rest is still unpaid from past 2 months. I have given them constant reminders but they are not responding to my mails and calls and giving false commitments.

The scenario is that I successfully finished 1 project with them and according to the letter of appointment i was supposed to get the payment within 15 days. As the project was mutually agreed for 15-20 days expected time but it got extended to more than a month. I was working on hourly basis so i was able to clear 10 days dues in between the project only. But the pending payment was still unpaid even for a month.

The main problem happened when the Client Servicing Head asked me to start on another project with the commitment that my payment will b cleared in 2-3 days, i agreed to work on it. As the days passed by i was getting a picture of the delaying of payment. The situation was getting worse and i was becoming disinterested in the project. On the 7th day i told the guy that i can only resume my services if i get the pending payment cleared.

Now after a few days i got a call from the same guy that their company is in some crisis so they can only give the part payment and rest will give after one month. Thinking of this, i went for 8th day work to collect the cheque and on 9th day asked them clearly please give me in written that i will get my payment in one month and then only i will resume my services.

But nothing happened. They were not ready to do that and there was no communication after that between us for few days. Later I drafted a final bill for 1st project pending payment + 8 working days of 2nd project and mailed them but got no response. When i called the same person he clearly said that i would not be getting any amount as i have caused them loss and i have black mailed them to get that part payment and later leaving the work in between. So since them i am trying hard to get in touch with the accounts section and they are saying that they are waiting for a big payment and they will pay me..for that i have to wait...

Now what should i do...Please advice. I mostly have all the documents and communication relating to the work in handy and in email. Please provide me any solution as the pending dues is 50k+ and in need of it.

P.S. : I am from New Delhi and the company where i was working is in Noida Sector 63.
26th December 2012 From India, Delhi
#Anonymous
Nobody in this forum has any views or can suggest anything on this? I would request senior and fellow members to have their views on it so that i can take necessary steps.
3rd January 2013 From India, Delhi
It seems that you have made the situation worse. You can be polite in first shot. well, now you need to wait for the payment and have patience. Be in touch with account department or someone else in the company for smooth process of your payment. Don't create pressure and show your willingness to work with them more. Once they will trust they will release the payment. Don't give them the impression that you are concern about payments only.
This will work buddy !!
Chill HR !!
3rd January 2013 From India, Gurgaon
#Anonymous
Thanks for the reply.
Well i know there are times when we take wrong decisions and my decision was to start on another project while not clearing the 1st project payment. I am still awaiting the payment since 2 months and have been waiting patiently now and hope they give it soon. I have been in constant touch with their accountant but now he also seems to ignore my calls.
But if they don't pay up, is there any other way out i can get out money like legal formalities or something.
3rd January 2013 From India, Delhi
Dear friend, donot loose courage and take back step in approaching for demanding the dues. But days are like this take another projects for earn bread for life
3rd January 2013 From India, Visakhapatnam
#Anonymous
Yes you are right. Thats what i have been doing. Is there any remedy or precautions to avoid this kind of situation in future..Please advice.
3rd January 2013 From India, Delhi
There is no hard and fast rules to avoid such things. We have to go on doing things with anticipating such things
3rd January 2013 From India, Visakhapatnam
Dear concerned,
Greetings!!!
If you have a contract of any short with your employer, you can move to the court.
Even if, you have no contact but a work order , you can move to the labour court for non payment of your dues.
However, as a first step, you can get a legal notice drafted by a lawyer and send it to the other party through India Post and see how they respond to that.
4th January 2013 From India, Delhi
#Anonymous
Thanks. I have all the documents with me. The letter which states my charges for the project and all the related info, email conversations, work logs, clicked pictures of my daily register entries. I am thinking of the same solution but at the same time waiting that everything goes out smoothly and patiently.
The main thing was the employer even hold up their employees salaries for more than 2 months during oct-nov'12...and when i knew all this, i stopped the project in between..and now he is giving false and stupid excuses for not paying back.
4th January 2013 From India, Delhi
Dear Anonymus,
TeamGroup HR has given correct advise. Pl follow it immediately by contacting a lawyer and issue a legal notice. Claim for all amounts due alongwith interest and legal cost. Discuss / contact them only after this.
Best wishes,
Ravi Kanth
4th January 2013 From India, Hyderabad
#Anonymous
Dear Sir,
I have contacted a labour court lawyer and he advised me that if they release the payment peacefully then it would be ok otherwise leave it.
The lawyer told me that i have signed a letter for the 2nd project and left in between. This could be the reason for the company to recover damages from me. But the reason of leaving in between was they haven't paid me my previous project balance payment and they are blaming me for everything as i have caused them loss by leaving the project in between. I might have to bear all the losses.
4th January 2013 From India, Delhi
Dear friend,

I assume that you were utmost careful in taking all the evidences as a proof of the Work you have executed/done for the Organization. However, we often forget (or) oversight checking the terms of the Work Contract (or Employment Agreement) while signing it. Without any hesitation, I can tell you that, most of these agreements/contracts slightly are in favor of the Employer or the Work Sponsor. I believe, even with your Agreement/Contract with the Company, they must have kept certain term which may tend the Balance towards the Company. There is no fault in it as it is a common practice.

I request you to fully understand the terms of 'Financial/Service-Fee Payments' in the Contract, and try understanding the obligations of each party. Once it is done, plz goto the sections/term which talks about 'Non-fulfillment of Obligations' and understand the implications/inferences. Then apply the implications on below 2 aspects,

1. Non-payment of Service fee (by the Company)

2. Non-completion of the Assignment/Project (by You)

After this, I believe, you yourself will be in a position to understand the exact win-win/win-loss/loss-win/loss-loss situation. If you think, you are at the 'win' position and you have some edge, plz go ahead with legal proceedings; else, you can put your effort in finding some other projects with other Companies.

All the best whatever is the case.

Regards,

Kishore Mavuri

+91 900 068 0678
4th January 2013 From India, Hyderabad
#Anonymous
Dear Mr. Kishore,
The 2nd letter which i signed was basically a 1 page letter stating my services, position and renumeration. There were 2 points besides all these info which can be a problem and they are :
1. Your responsibility includes every aspect of editing and that you would ensure the quality as expected by the Director and the client.
2. You would not engage yourself with any other work during this time period and make yourself available for the entire duration of the project.
These were the only 2 terms mentioned in that letter which i signed.
But in my 1st letter, it was more of a appointment letter without terms and conditions mentioned. There was one point mentioned which states that "As discussed your fee will be structured as follows..xxx...This will be paid in full within 15 days of the completion of the project and via cheque."
4th January 2013 From India, Delhi
As per my knowledge that amount is your right. As you have explained that they keep on delaying your payment regularly. So its time for you to move to the court. You have a the detail of work order , you can move to the Labour court for non payment of your dues. However, as a first step, you can get a legal notice drafted by a lawyer and send it to the other party through India Post and see how they respond to that...
Best of Luck,
Farhat Sophia
5th January 2013 From India, Jalandhar
Dear Anonymus,
Without seeing your documents, It is quite impossible to anybody to advice you. What is your agreement with the Company and what task you have been completed on what terms and condition it is not clear. So it is better go to learned advocate and discuss the matter instead of finding ways in dark. You can file your suite in Civil Court and recover your amount with interest and cost of suite. Good luck.
Joshi Kishor
6th January 2013 From India, Pune
Hi
I am facing similar case, Kindly help.
I am newly joined HR Executive in my company. Few employees have been transferred from our group company 5 months ago, now I have been given the task to follow up and to get their settlement from that company. The employees were told that they are being transferred to this company and most of them were working from long period. As they are not settling even after waiting from long period, our management have requested to settle their accounts, but they are asking to submit resignations(for all transferred employees) to process settlements like F&F, Experience, Relieving, PF and Gratuity. As it is transfer case , none of them are willing to give resignation letters. So please suggest, Does these transferred employees needs to submit their resignation for settlements as per statutory norms?
8th January 2013 From India, Hyderabad
Hi, Please guide if any assignments like this which can be work from home... Regards Rashmi Malhotra.
9th January 2013 From India, Delhi
Whoever you are please send a legal letter addressed to the company, the managing director, all the directors, owners, and client servicing head, you will get the money. Send it through a lawyer.
9th January 2013 From India, Mumbai
Hello,

After reviewing all the responses of the members in this forum, let's view your lines '........employer even hold up their employees salaries for more than 2 months during oct-nov'12.........' from a different perspective.

Keeping aside the fact that this company owes you the balance payment for a moment, doesn't it strike you that this company has a REAL LIQUIDITY PROBLEM? In such a scenario, would any legal steps on your part bring you the IMMEDIATE result you desire--your payment being cleared? I guess not.

If your focus is on 'getting the payment' & NOT 'when you get it', most likely, it COULD be after a long gap. It's up to YOU to make the decision whether you want to spend the time, effort & money to fight the case--based on what you mentioned [about having ALL the docs in-hand].

Another way of looking @ it is: MAYBE you COULD have done better background checks about this company--mainly about the financial stability, since that's what would be of real concern @ the EoD. Being in business, I am sure you do realize that sometimes such situations crop-up DESPITE the best efforts--guess that's part of the game, so to say.

Thinking of the legal angle, I am not sure if you have put IN-WRITING the reasons why you stopped working on the Second project. If not, then the company COULD have an edge from legal aspects. This is w.r.t. your line: '........they are blaming me for everything as i have caused them loss by leaving the project in between'.

Frankly, I think you should take this as a learning experience & move-on......even though 50K isn't a small amount, sometimes the cost of recovery could be far more BOTH in tangible & intangible terms.

All the Best.

Rgds,

TS
12th January 2013 From India, Hyderabad
Dear All,
I fail to understand, why all the members who have chosen to reply to query raised, has chosen to discuss how the author should have acted and not acted. The post is seeking a solutions, and not how,where and when he went wrong.
As stated earlier, send a legal letter to the owner/director/co-owners/business head/directors and company, individually. If the company doest have money to pay it vendors/employees as per contract then they should immediately wind up their business pay all dues payable and pack their bags and move.
Non payment for work done is clear cut case of contract violation, and hence legal action is just and proper.
Initial legal letters from you to company will automatically bring them to negotiation table.
You have been provided enough guidance, and hence you may proceed with such guidance that you deem suitable from your point of view.
Regards
Octavious
13th January 2013 From India, Mumbai
#Anonymous
Dear Senior Members,

I am in a very stuck situation and have been advised by a in-relation lawyer that if i send him notice or file recovery suite then he can in return file a compensation damages case against me. Since the 1st project dues are pending, I started working on 2nd project thinking that i will get the first cleared. He told me that i have signed a letter for the 2nd project and left in between. This could be the reason for the company to recover damages from me. But the reason of leaving in between was they haven't paid me my previous project balance payment and they are blaming me for everything as i have caused them loss by leaving the project in between.

The 2nd letter which i signed was basically a 1 page letter stating my services, position and renumeration. There were 2 points besides all these info which can be a problem and they are :

1. Your responsibility includes every aspect of editing and that you would ensure the quality as expected by the Director and the client.

2. You would not engage yourself with any other work during this time period and make yourself available for the entire duration of the project.

These were the only 2 terms mentioned in that letter which i signed.

But in my 1st letter, it was more of a appointment letter without terms and conditions mentioned. There was one point mentioned which states that "As discussed your fee will be structured as follows..xxx...This will be paid in full within 15 days of the completion of the project and via cheque."

Now please advice what action should i take? or just move on.
14th January 2013 From India, Delhi
Hello,

Looks like what I mentioned in my response of 12 Jan as a POSSIBILITY [ "I am not sure if you have put IN-WRITING the reasons why you stopped working on the Second project. If not, then the company COULD have an edge from legal aspects"] looks more likely a PROBABILITY, based on your last update.

Frankly, my reading of the action-plan is what you mentioned in the end--'....just move on', however much this pains or irritates @ the way this client of your's has taken advantage.

But....and with a CAPITAL B.........this needs to be your learning chance too. First & foremost, I think you need to learn to put things in-writing with the long-term aspects in-mind.

Suggest FIRST talk to your in-relation lawyer to draft an Agreement Draft that you can use it regularly, without depending on the client(s), who, in all probability, CAN ease-out/miss-out/include the aspects that you MAY use if things don't turn-out well. like it's happened now.

SECOND, try to do some sort of a Background Check of the client BEFORE you get into any contract/agreement--this won't be very tough, given the reach of internet today. You may not even need to take help of Agencies, like Companies do to get the BCs done for prospective employees.

THIRD, learn NOT to React, but TO Respond--MAYBE had you known that this situation COULD have come-about, in all probability, you MAY NOT have stopped working on the second project, but WOULD have handled the issue in different way. Pl give this a thought.

All the Best.

Rgds,

TS
15th January 2013 From India, Hyderabad
Dear , Please send me the contract signed letter and all others payment & pending history and we will talk to the company. Best Regards Sajid
15th January 2013 From India, Delhi
Hi
For freelance it totally depend on trust .. cause their is no paper work , no documents to prove that ur employee or you work over their or u hire to complete an assignment. if the situation is worst ,, have a word with cram and try to get your money that the only thing u can do
ALL THE BEST
Asrar
6th February 2013 From India, Hyderabad
#Anonymous
Dear Anonymus, Concern in local consumer court with the details of all the documents which ever you have with that particular project.
20th February 2013 From India, Chennai
Hi, Concern to the local consumer court along with the particular project documents which you are having, but don’t be delay.
20th February 2013 From India, Chennai
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