Madhu.T.K
Industrial Relations And Labour Laws
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Asso.prof.(commerce & Management) Pg
Genesis@Al
Business
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Hi,
I am Currently working for a BPO in Goa. Our salaries were delayed since the CEO somehow sensed that employees were intending to leave. However I did get my salary cheque (since I'm new joinee no Bank A/c is opened for us). I too was intending to resign due to my heath condition. But I did come to know that the CEO was blocking salary cheques of employees who have resigned. I was wondering if mine too will be blocked or no.
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There is no law which empowers an employer to hold salary of a worker in anticipation of his resignation. Moreover, the wages earned (it is an earned wages because you are getting it in return for some efforts you have put in to produce some thing or render some service) cannot be withheld unless there is a strong reason to believe that the worker is not entitled to get it.

Now coming to the practical side of the case, there are employers who delay in paying salary or who does not pay salary for months together but will continue to employ the workers and will say that there is financial problem and once the situation is improved, salary would be paid and so on. Again, the workers have option to recover the wages following the provisions of Payment of Wages Act and Industrial Disputes Act but they would not take any step thinking that once they move in that direction they would finally lose their job, perhaps would get the salary in full. Another kind of employers, like that of yours, will always think that once the salary is paid, the people will leave the job. They will not think why the workers leave. It should be due to one and only reason that they are not comfortable with the organisation they are working for and the responsibility to remove this feeling is with the employer only. Without doing it, holding the salary indefinitely is very bad.

As already said there can be two remedies, either to fight for your rights under the Labour Laws or to forgo and wait for the right time to come. But that does not mean that you should continue your association with the same establishment but can very well find your own career that will make your life comfortable.

Madhu.T.K
There is a practice in some firms to deduct Employee Salary in lieu of errors made/ human mistake. This is totally illegal practice & no law support such deductions.
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It's not that easy to block the cheque once it's issued to the payee except under few circumstances -
1. Can send a letter authorising the paying banker to "Stop Payment" on the pretext of 'misplaced' 'lost in transit' etc.
2. Can raise a dispute and file a petition in the appropriate court seeking injunction directing the banker not to pay against the cheque (this is resorted to avoid penal action for dishonour of cheque under the Negotiable Instruments Act.
In your case having already issued a cheque in your favour it's not that easy to escape once they attempt to block the cheque payment since they'll know they have to face penal action for "bounced cheque" which act they cannot defend when they are taken to court as it's against geniune salary payment for the service rendered.
So for the present await to see what happens to the cheque when you present it for collection ( have you presented it or not yet ?)
Deposit the cheque and en-cash it. If it is stopped by the employer, and the cheque is returned unpaid, follow the procedure for remedy in respect of bounced cheques, in consultation with a practising lawyer. The repercussions of such a case are serious and can lead to his imprisonment if you follow the correct procedure.
Dear Sophia,

Thinking ahead, pl.be informed, when the unwanted things happens, what you have to do ?

Q. What if a cheque is dishonoured (not paid by the drawer bank) It was issued by a Company. What can I do now?

A. On the dishonour of cheque by the company you can file a suit for recovery of the amount under Order XXXVII of CPC. If and when the cheque is dishonoured ("blocked" you said that) you have to issue no notice to the company bringing to their knowledge the dishonour of cheque and the life of the cheque is still valid (3 months from the date of cheque). You please present the cheque again and on receipt of the information about the dishonour of the cheque once again you have to immediately issue another notice (Regd.with acknowledgement) within 30 days from the receipt of the information of dishonour of cheque to the company. If the company does not pay the amount within 30 days from the receipt of the notice, you can file complaint under Section 138 of the Negotiable Instrument Act. Pl.note the said complaint is to be filed within one month on the expiry of 30 days of notice.

You can read more about the impact of 'dis honour of cheque' or 'stoppage of cheque payment' from the attached notes.

Attached Files
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File Type: docx Negotiable Instruments Act-WHAT MATTERS IF A CHEQUE IS DISHONOURED.docx (19.3 KB, 141 views)

Is there any provision in law to deduct salary or other payments of employees, due to losses incurred to the company employee mismanagement or employee, staying absent on purpose and the losses suffered on that day, or the employee resigns from job, on an instant, wherein the company incurs losses on jobs pending due to the employees termination of services.
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