Dinesh Divekar
Business Mentor, Consultant And Trainer
Saswatabanerjee
Partner - Risk Management
Harsh Kumar Mehta
Consultant In Labour Laws/hr
Kishorkulkarni
Law Practice
Nvraovskp
General Manager-hr
+1 Other

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Respected Sir,

I, C. Radha Krishna, was an employee of the M/s Priyanka Selection Pvt Ltd as a Store Manager. The organization is into Retail Business and deals with Sarees, Dress Materials, Ready made dresses etc. for Ladies and Kids. The company had commenced the business on 05th Oct 2013 in KPHB Colony in Hyderabad. Currently they have three showrooms in Hyderabad city. The addresses are as mentioned below.

1st Showroom.

Priyanka

MIG 221, Phase 1.

Road No 2. Beside Taruni Showroom.

Near RS Brothers. KPHB Colony

Hyderabad. 500072

Phone: 040-66516299.

2nd Showroom.

Priyanka

Plot No. MIG 32.

H no. 1-18-34/32.

Near Railway Reservation counter.

AS Rao Nagar. Kapra Muncipality.

Hyderabad. 500062.

Phone: 040-42220299

3rd Showroom.

Priyanka

6-3-788/A/2,

Part of Padmawathi Shopping Mall.

Opp Chermas. Ameerpet Bus stop.

Ameerpet.

Hyderabad. 500016

Phone: 040-66815253

The below mentioned are some of the other details of the organization that may be required.



• Certificate of Incorporation ID Number is U17290AP2013PTC089671.

• Commercial Taxes Department (TIN number) 28363531800.

• PAN No. AAHCP3280D

The following are the lapses which I would like to bring to the kind notice of the respected Labor Commissioner.



1. The company does not have any Trade License for any of the showrooms. They had only for KPHB colony showroom which got expired in March 2014 which is not renewed till date.

2. All showrooms don’t have Shops & Establishments License till date.

3. All the showrooms are functional 365 days without having a 365 day working license which is also against the rule.

4. The organization is registered with ESIC and EPFO last year that too only for 23 employees but neither a single rupee is being deducted from neither the employees nor the organization had contributed from their side and credited the amount to the government. Incase if there is any kind of emergency to any employee they are unable to utilize the facilities offered by the government as the employees have not been registered for ESIC nor EPFO and don’t have any ESIC or EPFO accounts till date.

5. The company had employed close to 200 to 250 employees in all the three locations. But as per the Labor certificates, the registration has been done only for 50 to 55 employees. The Labor License No for KPHB Colony is AL0221201400011782.

6. The company does not follow any procedures in regards with the recording of Attendance in the registers as per rule right from the beginning.

7. The company started deducting professional tax from the employee’s salaries from the month of June 2014. Weather they are paying the amount to the government is not known. The employees who have their salaries more than Rs.25000/- per month have been deducted TDS without having registration with TDS.

8. No employee is given any kind of Offer letter or Appointment letter except for the ones who have joined in the month of June 2014.

9. No employee has been given any kind of Pay slips against their salaries till date.

10. The organization terminates employees as per their wishes whenever they like without any notice or valid reasons or compensations. Even on 31st of Oct close to 20 sales persons have being expelled in a single day without proper reasons.

11. The salaries are not paid on time. The committed date for paying the salaries is 05th of every month. But that is getting extended till 20th to 22nd of every month.

12. The employees who have completed 1 year of service have not being received the Dusshera / Diwali Bonus till date. Though this is not being committed by the management but it is followed in the Retail Industry for a long time.



As per the above details mentioned, I request you to kindly look into the actions to be taken against the company and the management for the benefit of all the existing and non existing employees in the payrolls of the organization.

Yours Faithfully.

Radha Krishna. C

27-16/29/4, LB Nagar Colony.

Neredmet. RK Puram (PO).

Hyderabad. 500056.

Mobile No: +9703897888.


From India
Dear Friend
When you are having all these details with you, why should not make a complaint with concerned Labour officer in whose jurisdiction particular shop falls? provided if you are victim of your employer. If you meet any labor law practitioner, at Hyderabad, they can guide you to take necessary action. If PF & ESI contributions are said to be made they must be remitted to concerned offices without fail or else it may viewed as serious lapse on part of the employer. If any employee service is illegally terminated, such employee can invoke the jurisdiction of Authorities under Shops and establishment act with sufficient proofs so that they cases will be taken up accordingly by labor dept
Regards

From India, Hyderabad
Dear Radha Krishna C,

There are so many observations by the Labour Inspector. Obviously, before raising these objections, he must have verified the documents and then only recorded the observations.

You have been given reply on how to handle this issue, however, I will raise another issue. There are large number of unscrupulous businesspersons in India. There was some deterrent in the form of Labour Officer. Narendra Modi government in guise of removing "Inspector Raj", wanted to clip wings of labour authorities and give free run to these unprincipled businessmen. While the businesses of the business owners may flourish, it could be at the cost of poor workers because they will be deprived of the benefits of social securities.

Look at the temerity of the business owner. He does not have even proper attendance register. He has thrown every single law like PF, ESI, Shops and Establishment Act to the winds. Can anyone require evidence of the state of things to come in future?

Thanks,

Dinesh V Divekar


From India, Bangalore
Sir(s),
1 I think this citeHR is a forum for discussion on the subjects of labour laws and HR procedure/theories etc. It is not a forum for lodging grievances or complaints against the employers or any of their officers.
2. I feel personally that the employer should properly made compliance of labour laws and allow its employees to avail facilities of social security benefits and other benefits as available under various labour laws. But personally, I cannot do any think or any action more.
3. Perhaps, the organisers of the citeHR may like to forward the above issues to the relevant government/government departments for investigation and settlement of grievance of the employees as mentioned by the person who initiated this thread.

From India, Noida
Dear Adv KH Kulkarni,

While respecting you in person and also your views, I would like to bring out divergent view in this context.

Why people come and join public forum? They come here to seek advice. The person in question has brought his organisation's problems in the general HR forum. While doing so, he could have concealed his identity. Nevertheless, he has done it unwittingly and is not much aware of the consequences. Possibly he is so exasperated that he does not bother about his removal from the current employment.

The public forums help in bringing the issues that are kept under the carpet. Sans these forums, world would never get glimpse of what's happening in the world. Couple of years ago this is what Julian Assange did through Wikileaks. Through these leaks, world came to know on how America views their friends or foes.

Ignoring the inconsistencies of his post, what we the seniors should look at is what meets more than eye. The essence of the post is rampant violation of the labour laws. Who does not know this does not happen anywhere and everywhere? If the employers were to be that sensitive, they would have taken feedback from the employees. In this case, even feedback is also not necessary. Adherence to the labour laws does not require any feedback. A person who starts business should be intelligent enough to acquiescence himself/herself with the basics of laws.

Approaching employers is never easy in India. Just two days ago, there was news item captioned "Infosys women employees accuse senior executive of sexual harassment". While doing so, these women created a fictitious e-mail ID. Imagine women from India's second largest IT company did not pick up courage to report this matter officially. What this incident portends?

Rampant violation of labour laws is common in India. In fact labour laws itself is misnomer. In all practical purposes, these are employer laws.

The general forums are not courts wherein we start verifying the facts and then only start commenting. If we start scrutinizing evidence then we may question the veracity of the poster itself. Who knows whether the poster is employee of the said company or not? Who knows whether some business rival has planted this false story in this forum? Even if he is assumed to be employee then how can we verify the authenticity of his post? Nevertheless, if we assume 10% of the facts of his post true, even then also the post vindicates the necessity of "Inspector Raj". When I wrote my reply, I wrote from the political context. My post was on inspector raj that Modi government wanted to remove. Remove the fear of labour officer and then you can imagine the state of the things to come.

While eradicating the inspector raj, Modi government must take adequate precautions to protect the rights of the labour, lest the labour world may take a giant jump backward to the 18th or 19th century. Hope the HR fraternity understands this. Rather than wallowing in the standard HR jargon, it is they who are supposed the read the writing on the wall and forewarn the government. However, considering their self-serving nature, I doubt whether they will do anything.

Thanks and regards,

Dinesh Divekar

From India, Kolhapur
Dear Dinesh Divekar,

I have gone through the views expressed by you and I differ with you on the very point that, bringing a topic/point for discussion, consultation or advice on social forum is different from posting a complaint with unnecessary and personalized details. The employee had no reason to make it public under the garb of seeking advice for non-compliance when one is not sure about it. The Employee has not mentioned whether he has brought these things to the notice of the Seniors or to the HR section or it is only tea-table gossiping on which non-compliance is assumed? My point is there are certain methods by which one can get information about the compliance and one should be sure before commenting on it.

In a newly started business, such gossiping has far more adverse impact on the moral of the employees and it is very difficult for HR to bring it to position. So, the employee could have posted his grievance " My employer is not making any statutory compliance such as payment of PF, ESI, PT, IT, Shops Act, MW Act etc and How and where I can make complaint? Location Hyderabad city" I thing this line is sufficient for advisers to reply and guide.

I hope I am not misunderstood..

From India, Kolhapur
Dear Dinesh Divekarji,

1. Your comments of yesterday are very relevant and correct and I agree with the same. I am contributing in this citeHR since about one year particularly on ESI/labour laws matters and know about wide-spread exploitation of the working class and even after matter is discussed in this cite and correct position is explained to the initiator of thread, there is no relief to the worker/employee.

2. I feel that while indicating views, we should generally adopt correct approach so that the employee, who is already harassed may not be required to face action from his employer for airing/ventilating his grievance outside by writing in this citeHR etc. I recollect few months back, a woman employee recorded her grievance in this citeHR regarding non-providing of maternity benefit by his employer. A number of experts/senior members, who are contributing in this cite expressed their views and some even suggested her to approach Labour Inspector, or Labour Court or file some case against his employer. I am not sure, what happened to her claim for maternity benefit, but after 2-3 months, the same woman employee mentioned in the thread that her employer has now terminated her services. I feel that some what, her termination from services may not be due to her airing her grievance through this citeHR i.e. outside the administrative scope of her employment.

3. Sir, exploitation of labour due to non-enforcement of labour laws is so wide-spread that it is even difficult to write correct position of labour laws. Therefore, in my opinion, while suggesting in our remarks, we may also suggest to the initiator of the thread to follow the procedure as laid down in terms and conditions of his/her employment and seek remedy through the authorities created in the relevant laws so that the employer may not get an opportunity to harass the employee further for airing his grievance outside his jurisdiction to public media.

4. I hope, you will see the remarks recorded by Sh. Kulkarniji, Advocate as above in view of difficulties as expressed by me in these remarks. After all, our aim is to educate and tell the correct position to the complainant/initiator of thread.

From India, Noida
I am inclined to agree with Mr. Kulkarni

A more common sense approach would have been to ask a question on how to file a report / complaint, rather than give a lot of details which can lead to the employee getting traced. Which leads me to wonder whether the poster is still employed or a part of the 20 sales persons removed from job.

There are some important points I find difficult to understand :

Company is in retail business with small showrooms. Why will they need 250 employees ?

If they are large, it's hard to believe that this level of balent non complaince would be missed.

A Pvt ltd company with pan number and no TAN number for TDS is hard to believe. The auditor would never t sign the tax audit report

How did they get a VAT number (commercial tax has gone some years ago) without shop and establishment license ?

Why would they need a labour license for everyone ? Unless the entire operations is being run with purely contract labour.

How does the poster know that TDS is not deposited. Has he / she checked individual 26AS Accounts ?

And I also see the original poster has not bothered to respond to posts that have come in yesterday or today.


From India, Mumbai
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