Partner - Risk Management
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Raj Kumar Hansdah
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Sr. Hr Executive @ Polymerupdate
Karthik Nayudu
Regional Manager - Hr
Office Administratiion
Project Executive

Thread Started by #ektachakraborty

Dear Sir/ Madam,
I joined in an events company as a project executive on 28th jan 2013. The appointment letter shows 01st Feb though. After working for the complete month of february I was terminated yesterday 04th march 2013 for not being able to business to the company within this month. ( we had a monthly target of 5,00,000).The termination mail also said that they will withhold my salary which is payable on 7th of every month. My question to you is, are they liable to do such a thing after making me work for the entire month without providing me a prior notice? And I must mention here that my prospect list was been taken away on the pretext of helping me out with it and given to someone more experienced
5th March 2013 From India, Delhi
Hi Ekta,

It completely depends on your appointment letter. Have they mentioned termination clause for a probationer?

Usually when a person has a probationary period, employment can be ended from either side on immediate grounds.

However most companies do give a week's notice so that the person is prepared for it.

However in your case -

1. Your joining date was 28th Jan so it should be mentioned in your appointment letter as same and not 1st feb.

2. No matter about the targets, there should always be a basic fixed component paid to an employee.

3. monthly targets of 5 lacs even for a new joinee? Are you a fresher or experienced? If you're experience they might have given you a target based on your experience. For a fresher such target is not justifiable. However in either case, it is not right to expect the employee to perform from day 1 even if the person has experience in selling or getting business for same product elsewhere because - work environment is different, s/he has changed the workplace which brings changes in peers, team and other things.

4. It is to be understood that a probationary period of 3 months is to be evaluated together and not month on month base because not all can perform from day1

Clarify your doubts first with the HR as to how do they expect you to perform. What was your performance? And have they given you any training on developing business or they just expect you to get business of worth 5lacs per month on your own?
5th March 2013 From India, Mumbai
Dear Ankita Mam,
Thank you for your quick reply. I am an MBA fresher. This was my first job. My fixed salary was 16,500 + incentive. They justified on giving the joining date on 1st Feb by saying that in the previous dates they were providing us training so we should pay them instead. And my appointment letter says:
A) your appointment with us can be terminated by you after confirmation on giving two months notice or by forfeiting your two month salary.
B) Your appointment can be terminated by us at any time without any prior notice if your work is not found satisfactory, and the company reserves the right to either withhold or not withhold your salary.
What is bothering me the most is that they took away my prospect list on the pretext of helping me out with it. Can I atleast ask them to pay me my salary?
5th March 2013 From India, Delhi
Ok chill,
How many days have you worked? practically a month right?
Honestly this is not the kind of clause a company should be framing because they are expecting you to abide by the rules but they can simply break it all.
No company can terminate any employee any time they wish.... except as I said such clause can be validated for probationary period.
No company can with-held salary for the duration you worked... The fixed part is to be paid.
What is the reason that they gave to terminate you?
Have they issue a termination letter?
What did they say about not doing your F&F?
Sorry for delayed response, net issues...
5th March 2013 From India, Mumbai
Dear Ankita Mam,
They terminated me over a mail.. let me copy paste the literature for you. The reason was for not being able to bring business for the company. And I don't know what is an F&F honestly. and yes mam, I have worked here from 28th feb - 04th march 2013.
Dear Ekta
This is to inform you that you have been terminated from your job as
your work was not found satisfactory and you have not brought results.
The company holds the right to withhold your salary as you have not
even been able to get a single business to the company
Please handover all the data and documents and visiting cards
entrusted to you to Mr Hemant.
Renit Daniel
+91 98400 93858
5th March 2013 From India, Delhi
Dear ektachakraborty,
As per the Labour Law Employer cannot Hold any ones salary, You need to approach the Conciling Officers, Labour Commissioner of your jurisdiction for your salary issue , it is your Rights. nobody can hold your salary, Just ask for clarifying why your salary is holded by the company ask for the show cause notice and make a fresh grievance Letter to the Labour Commissioner attach the reply of the show cause notice of your company for the reason for holding salary, You are entitled for your salary not for the Incentives...........
Thanking you
Kannan Thevar. S
5th March 2013 From India, Mumbai
F&F = Full And Final Settlement... The company has no right to withhold your salary and you have every right to have it even if you are terminated on your on mistake or misconduct unless you have not caused any damage or loss to the company...
5th March 2013 From India, Bangalore
Thank you Kannan Sir, " Jibinkpious " and Ankita mam..for your time and such information which no google could have given me.
please provide me with any other relevant information which you think might help me.
5th March 2013 From India, Delhi
Out of curiosity,
- was this prospect list that was given to someone else, generated by you or,given by the company ?
- did you keep the company informed of what you were doing each day and what was the status of each contact or prospect you processed ? Or was the company complete in dark till the last day
- were you the only person recruited or were there others ? What has been the success or otherwise of the others ? Were you the only one terminated ?
5th March 2013 From India, Mumbai
Our company is new in Delhi.. we were not given any database. I started making database of my own and kept a follow up.
we also had to mail a DSR (Daily Sales Report) to our senior everyday evening before leaving.
We called them the prospect list who had a chance of becoming our clients or with whom we were keeping a constant follow up and the response seemed positive.
And well there are 5 of us who joined. One among us has also been able to bring some business. the rest is in a similar condition like me.. though it is only me to receive the termination letter first.

6th March 2013 From India, Delhi
Dear Ekta

I am sorry to hear about your travails and the lousy way the company treats its employees.

Some of the points that clearly emerge, are :

-- The company's standard is evident from the shoddy way they have framed their appointment letter and also the termination letter.

-- The company never intended to pay any salary to Freshers; and just wanted them to generate the leads for future business.

-- From the lead generated by you; they can reduce their efforts and send their experience sales staff to close the deals started by your efforts.

-- They are aware that it always takes more than a month of sustained efforts to convert cold calls to sales closures. Thus,its irrational to expect business in the first month itself.

-- They taken your list of prospect for this very reason. Hope you have a copy, which you can put to good use later (I"ll elaborate later on the "how" of it)

What about other's (those who joined under similar situation) experiences ?

The clauses in the appointment letter are arbitrary and unjustified. These will not stand the scrutiny of Law and meant only to deny the employees of their rightful salary.

Such companies go about such business, assured by the knowledge that no employee would go about fighting a legal battle; and would be more busy with finding another job.

I hope you meet the Labour authorities of the area; put up a complaint and pursue the matter further. You have nothing to lose, and everything to gain.

Please feel free to seek further guidance/ assistance from our members for fighting this injustice.

Warm regards.
6th March 2013 From India, Delhi
Having agreed to their 'termination clause' you may not be able to contest it; however, there is no reason why they should withhold your salary. I think employers should exhibit far higher ethics; leave alone what the law says, when the company hires a candidate, especially a fresher, the company knows it is taking a risk and there is always a cost associated with this. This cost has to be incurred by the company whether results are achieved or not.
6th March 2013 From India, Chennai
Dear ektachakraborty,
To get your salary you have justify your attendance, Muster, Time Sheet, or any other mode of Presentism in the company that you are on Duty, and ask reply for your salary hold , As per the Labour Law, holding the salary is not a fair Practice. It is illegal in nature
Recovery from salary can only happen when it is proved that the employee has brought in any loss to the employer. I suggest you put in these points with the management and if they do not listen go for legal action for recovery of the salary from the company
make a fresh application request letter to the labour commissioner from your jurisdiction.
Thanking You
Kannan Thevar. S
(HR Administration)
6th March 2013 From India, Mumbai
Dear Ekta,

All Seniors have rightly suggested methods to claim for your salary.

There are certain SMBs who would do this either coz they are ignorant of rules and regulations or they think employees are ignorant. I have faced similar situation and have seen few friends suffer too... Kindly ensure the following -

Kindly learn from the experience and question all such practices in the initial offering stage. Even on your joining date, it is upto you to sign the appointment letter. If the rules are not equalised and you feel it is unfair, you should talk about same to the HR and seniors and get your doubts solved then and there.

Also be thankful that you got to know the actual practices of your company as early as in 30-40 days... Weigh your pros and cons and accordingly move ahead. Please note that put a complain as suggested by seniors. This would not just help you to claim the salary against the service you rendered for the said period but also ensure that they do not repeat such thing with other employees.

Wish you luck :)
7th March 2013 From India, Mumbai
Mail sent by my Senior today:
Dear Ekta
Please note that in the appointment order duly read and signed by you the Point No 7 it says
"Your appointment can be terminated by us at any time without any prior notice if your work is not found satisfactory, and the company reserves the right to withhold or not withhold your salary"
And we have found your work not satisfactory as you have not been able generate any revenue for the company since your appointment.
Therefore its clear that we have to withhold your salary due to your non performance and non deliverance to the company.
Please find attached a copy of the appointment order also that you have signed
This is the mail Renit Daniel sent me today. Shall I reply him something? Shall I file an FIR against him? Shall I file an RTI? or shall I go visit the labour commissioner?
8th March 2013 From India, Delhi
Hi Ekta
Don't worry, go to labour office and meet ACL or DCL and explain the situation to them, they will ensure your salary being paid.
Rules may be framed by company like probation, confirmation, offer letter, appointment letter etc but all statutory will start from day 1 of your joining.
Don't think too much, your salary is Rs.16500/- you can approach labour office if your salary is above 30,000 then you need to procees through court of law.
8th March 2013 From India, Vijayawada
As I said, an agreement is valid only if both the parties would gain something. Here the clause is such that the gain is only to one party while the other suffers.

Such agreements are not enforceable in the court of law. So just chill.

Have they mentioned any probationary period?

If yes, they are to evaluate your performance at the end of probationary period.

If no, again to your advantage. Any new joinee (irrespective of fresher or experienced) is given a probationary period of 3-6 months wherein his or her work and skills are evaluated.


First go to the HR and ask the following questions -

1. What was the performance expected out of you in the very first month?

2. What is your probation period?

3. Take the print out of the email conversations which mentions your termination and reason there-with.

4. Ask them to give you proper termination letter - on company's letter head and mention the reason for termination & any clause that they have to mention.

5. Compare the reasons, (possibility they may change the reason on formal termination letter)

a) If same, proceed further.

b) If different, ask for your full and final settlement i.e. salary. If that is denied, ask to give same in writing and reason for same.

6. Proceed to labor office and file a complain with a labor officer. You would need your appointment letter, your termination letter over email and termination letter on letter head. Explain the whole matter. Let him guide you further and take necessary action under his guidance. As far as my knowledge goes, once you lodge a complain with labor office, they go to the company and company is answerable to them.

Relax. as said a one-sided clause in agreement is null and void you do not have to worry much.

All the best. :)
8th March 2013 From India, Mumbai
Dear All!
I received my salary, just with a simple text message of going to the labour commission. But they paid it in cash. as they did to all the other existing employees. And I signed a print out in which it was written that 'I have received my salary, and have no further claims'..
Thank you for your support!
11th March 2013 From India, Delhi
Hi Ekta Thanks for the feedback and Congratulations :-) We are all happy that you fought for and got what was actually your right !! Wish you the very best in your next assignment !! Warm regards.
12th March 2013 From India, Delhi
Hello Ekta,
Now that all's well & settled with the guidance of CiteHR members, suggest LEARN from this experience.
Like the Saying goes: A Mistake is a mistake UNTIL, you realize it, correct it & learn from it--then it's EXPERIENCE.
Guess the next step would be to look for another job ASAP.
All the Best.
12th March 2013 From India, Hyderabad
Dear ektachakraborty,
To get your salary, you have justify your attendance, Muster, Time Sheet, or any other mode of Present or absent in the company that you are on duty/ not on duty, and ask them for reply to hold your salary , As per the Labour Law, salary holding is not a fair Practice. It is illegal in nature
Recovery from salary can only happen when it is proved that the employee has brought in any loss to the employer. I suggest you put in these points with the management and if they do not listen go for legal action for recovery of the salary from the company
make a fresh application request letter to the labour commissioner from your jurisdiction.
12th March 2013 From India, Ranchi
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