Boss2966
Industrial Relations
Nathrao
Insolvency N Gst Professional
Kauraashi
Customer Associate
+3 Others

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Dear Sir / Madam,

I need help & advice for my below problem:

Currently I am working for a Private Limited Company (Travel company, H.O. in Mumbai) established this year in April 2013 and were having 10 branches accross INDIA. In past few months, the things got worse as one of the branch made loss of almost 50 lacs as the corporate didn't make the balance payment of the tour and second loss came due to foreign exchange conversions as it had rise. Due to that our company faced financial crunch.

Due to which we, the employees have not been paid last 02 months salaries. We also doubt that our P.F. which was being deducted from April 2013 has not been paid to our P.F. Account along with our Profession Tax which was also deducted every month.

Now the scenario is that the C.E.O is forcing us to leave the job without salary. In this situation, we have not yet given our Resignation letter to the management yet and we will not do so.

If our company terminate us on some reasons and id we employees file a case in labour court against our employer, would that we possible???

Awaiting your positive reply with useful guideline and advice for our problem mentioned above.

Regards,

PJ-Piscean.

Dear Sir / Madam,

I need help & advice for my below problem:

Currently I am working for a Private Limited Company (Travel company, H.O. in Mumbai) established this year in April 2013 and were having 10 branches across INDIA. In past few months, the things got worse due unprofessional management and poor attitude, our branch locally was doing good for first year and i understand we even got break even, Company was spending money carelessly and people were hired with very high salaries with no out come which resulted in heavy overheads, hired were people for operations not worrying about sales and hence sales fell down in major regions, consequently they decided to not pay salaries to employees,irrespective of productivity. Now company is forcing us to leave, nothing has been given in writing, verbally informed. It is 2months without salaries. Situation is creating doubt in our minds whether Provident Fund money which was deducted from our salaries has been even deposited same is with professional tax.

If our company terminate us now on some reasons can we employees file a case in labor court against our employer, would that we possible???

Awaiting your positive reply with useful guideline and advice for our problem mentioned above.

Regards,

PJ-Piscean.

As none of the employees (including workmen) have completed one years service there is no scope for any relief under ID Act in labour court. Varghese Mathew Trivandrum 09961266966
Dear Piscean
Please approach the Labour Office and explain your present position of your office. He will guide and pass instruction to your management regarding your salary dispute amicably. As your company is only 6 months old, you will not get any other benefit except 3 days notice pay.

Dear Sirs,
Thank you for your valuable advice.
I just want to know that, there is NO act in our law to hold the employer responsible and stop people like them taking undue advantages of the employees and spoiling our career. Its Breach of Trust.
What about our P.F. which has been deducted (5-6 months) from our salaries from the establishment of the company in April 2013? That also we have to sacrifice along with our salaries?
There has to be some law covering employees benefits. We do not want any additional benefits from the company except our 02 months salary for which we have worked.
Regards,
PJ-Piscean

Dear Piscean

If the company is into loss, that has to be reflected in quarterly balance sheet & accordingly the company may wind up legally. But before that the company has to settle the pending dues to employees, such as salary or bonus, incentives etc., else the same shall be obtained by attaching the company's asset thru court proceedings. Do not resign. First of all let you email to your company CEO stating that the salary is due pending, as well your asked to resign as the Co., is in loss, which is an evidence for legal proceedings. So that even if the company dismiss, you may sue the Co. The Co., involves in offence if it fails to contribute PF & tax without prior notice to MCA & PF office. A complaint can be established to PF office & the PF office will develop it as a criminal proceeding case against the concerned officer & upon the Co.,. You can obtain PF by directly approaching PF office. Atlast all these can be forwarded to the state commercial tax office, so that the office will cancel the registration of teh company & will ban the directors to register as directors or partners for any other companies in future.

Dear Piscean
You may continue the same PF account with your new job, as well if the company lay off you, than you should be paid 3 months salary in advance with prior notice. So dont worry. Be proactive as early as possible to benefit without delay

Dear P J Piscean

What is the notice period according to your terms of appointment?

a) If there is no notice period

I would recommend that you submit a resignation letter and then you can deal with the financial matters pending. However, you have to look out for an alternate employment before you submit your resignation. Just because you have resigned from the company does not mean that your employer can deny the amount due to you and statutory authorities. As regards PF you can approach the PF office and check the status. Now there is a facility for accessing your PF account online to check the balance in your account. If you do not get a satisfactory reply from the PF authorities you can approach the PF commissioner and seek information.

b) If there is a notice period (say 3 months)

I would recommend that you look for an alternate employment, inform your prospective employer that as per terms of your employment with your previous company you are required to serve a 3 months notice period. You can state that if they relieve you earlier you can join immediately. Thereafter submit your resignation letter and explicitly mention that you are willing to serve the notice period of 3 months. If your employer decides to relieve you immediately, then he will have to settle your dues at least till your date of exit. On the other hand if he allows you to continue in employment for 3 months, even then he has to settle your dues till your date of exit.

In any case do not resign without an alternate job on hand. This suggestion is given because you continue to work without knowing whether you will receive salary for the duration of service. If you can find an alternate job you are atleast sure that you will receive salary for the service rendered by you.

Regards

M.V.Kannan

Dear Sir,

With reference to my previous query, I would like to further clarify that the management had not even bothered to ask us for our resignations neither they have given us the termination letter till date. The management just send us all the email saying that the Ahmedabad Branch office last date would be 31st October 2013 and thereafter the office will be closed down forever. They did the same thing to other branches also and neither they have paid any salaries to employees for more than 2 months.

Secondly, our company was registered in April 2013 and from April till August 2013 they paid us our salary and from September'13 & October'13 they denied to pay us any salary. We also got our salary slips from April'13 to August'13 but one thing I would like to inform you that in the salary slip, they have deducted P.F. amount every month for the said period but they have not mentioned our P.F. account no. in any of our salaries.

So kindly advice and guide for above for further legal action against the company.

Regards,

P J Piscean

Dear Sir,
The only way for you is to approach the PF office and ascertain as to whether your employer has remitted the PF contributions. If you observe that the employer has not remitted the PF contributions you can lodge a complaint letter with photocopies of the payslips you have received indicating the PF deductions from your salary.
You can also attach photocopy of your offer of employment for the purpose of evidence.
As regards your salary you can send a letter by registered post seeking your full and final settlement.
In the meantime without wasting much time look for an alternate job and take up employment. In your prospective employment do not bad mouth your previous employer. This could be detrimental in obtaining an alternate employment. Just tell them that the company was in a financial crisis and wound up and you had to take up alternate employment.
Keep us updated of the further developments.
All the very best
M.V.Kannan


This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™