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Dear Sir,

Please bear with this long mail, but it would clear many doubts in the minds of the employees.

We all are employees of an European Mnc based out in Gurgaon. We joined this company on terms such as - high growth start-up, high standards of working, high quality of product and many more which could be enough to lure any prospective employee. We left our already settled work-life to join this team which had the so-called high moral standards.

We are a team of 8 Sales personnel working across 2 states in India. Lately 5 of the 8 have resigned owing to un-justified qualms and reasons which stirs the respect of each employee. We at the end of the day also work for self-respect, of which the top management has made utmost fun most of the times.

Some of us have not been paid reimbursements (Travel allowance and incidentals) for as long as 5 months, others for a minimum of 2 months. We have never asked the accounts team for reimbursements as we feel they would be taken care of automatically once we submit them. But, it is of low importance to the accounts team for a long time. We still have not got our salary for December, January is a far-sighted goal.

It is finally after a long time that the sales team asked for the same, as a result of which our National Head decided to terminate 3 of the 6 employees who demanded the same. New guards were employed with strict instructions to not let any sales member of the sales team including female employees to enter the office premises.

The ones who have been terminated are not given justified reasons. E.g. a management trainee has been terminated, for which a Senior Manager said, “You were a trainee and your training is complete”. It remains a mystery as to what the training was provided for, if they did not want to continue with the confirmation. The appointment letter states that if the training was not up to the mark, then it can be extended, towards which they do not have an answer.

One employee who had been directly recruited on direct reference of Sales Head has not been terminated.

I request you to please clarify the following :

1) Can a company prohibit it's employees from entering office by using power.

2) Is the Employer required to give the reason for termination for employees on prohibition period.

3) Can we resort to legal action against company for not paying our reimbursements/salaries on time and terminating employees without any valid reason and playing with everyone's career.

Thanks & Regards

Sales Team
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If an MNC is exhibiting a demoralizing culture towards its employees, its image in world may give it a negative impact on its image with electrifying speed than in an ordinary company.

With regard to query no.3, certainly you can take action against employer for non payment of salaries in time. Since the employer is covered under Payment of Wages Act, if employee is getting less than Rs. 18000/ pm then he can seek recourse through this Act to recover salaries by making complaint to inspector and other authorities under the Act. Besides the employer seem to be covered under the Punjab Shops and establishment Act as extended to Haryana and section 16 thereof the wages are payable before 7th of month. Inspector under the Act can also be complained for non payment of wages. Termination of employees can be done after giving the notice period of one month or wages in lieu thereof as specified under the Act provided the employee has been under continuous service of three months.

As regards query no.2, no reason is required to be given while terminating during probation period.

As regards query no.1, it is the discretion of employer to restrict entry of any category of employee in its office.


In fact, if rules permit, you can make public the name of the MNC so that there are no new victims. You will be doing a great service to the public and draw the attention of the media. Many people assume that an MNC means it is a great place to work with, there will be great culture to be happy working in. Unfortunately, there are many companies who have set up shop in India, only to use the cheap labour force to amass their income through dubious means and repatriate funds to their motherland. Using the monetary clout, they 'buy' government authorities so that they can defy the statutory laws which need to be followed. You know how our government babus are, who easily succumb to money. Perhaps this is an eye-opener for many who fall prey to the craze of the the so-called MNCs ! Please take the legal recourse and quickly file a case of Criminal breach of trust under section 420.
Best wishes
Mr. Sushil.K.Luthra has explained the provisions.....................
It is one of the jobs of Inspector appointed under Punjab Shops and commercial Establishments Act to ensure FnF dues and documents are supplied on time and max. time line is on the last day in office ..........................usual pay day.....

No one can prohibit and prevent the employee from entering the office to discharge the duty. If employer desires the employee to remain at home the written communication expressing so should be supplied.....in the absence of the same employee can lodge complaint with police, o/o Labor Commissioner,officials in Dept. of LaborEmployee's/Trade unions,court of law..............

Recently the dept. of Labor Karnataka has levied heavy penalty of Rs.12 Lacs on MNC for terminating a female techie.......

If the employer has not paid due reimbursements,wages complaint u/s406,420..............can be lodged and even winding up petition can be filed.......

The employees should approach an able Labor Law Consultant/service matters lawyer and demand salary slips of all months,PF number with a/c slips,ESIC card,acknowledgment of reimbursement claims, payment of all dues.......................and to call back the termination order, explain reason of termination, take disciplinary action against employees that stopped entry by force,..........

The employer has to maintain various registers/forms pertaining to attendance,OT,work hours,payment of wages,disciplinary action, etc under Punjab Shops and commercial Establishments Rules that can be obtained thru Inspector and can even pursue thru RTI.............

The trade Unions have been strong in Haryana and are always willing to embrace the employees....................
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