Business Mentor, Consultant And Trainer
Labour Law & Hr Consultant
Sr. Officer Hr
Working In Private Organization.
Factories Act states that payment of leave wages has to be made within two days of separation of service. There is no laid down interest rate in the Act.
Similarly the Payment of Wages Act also stipulate that unpaid wages be paid to terminated employee by the next pay-day. There is no laid down interest rate in the Act.
The Courts have been allowing interest on delayed payment depending on the Bank Rate of Interest for overdraft purposes.
3rd February 2018 From India, Mumbai
As I worked in Service Industry and the company is running Government Project 108 Ambulance in Rajasthan.
I am associated with the company only 8 month.
Please also advise on following points.
2) As per government rules, how many days company need to release payment.
3) What kind of penalty charge on company in delay in payment.
4) If company delay in payment then employee can ask for interest. If yes then what is interest rate will charge.
Waiting your quick reply !!!
Thanks and Regard,
3rd February 2018 From India, Jaipur
If the amount of FFS works out to Rs 30 Lakh then certainly you were not working in the worker category. In that case what was your designation and why you had to quit with just eight month's tenure?
Since you were working in service industry, provisions of shops and establishment act are applicable to you. However, you appear to be Manager and above category. Therefore, the only legal remedy available to you is to file civil suit to recover the outstanding amount.
The quantum amount that you say is outstanding speaks volumes. You have mentioned the date of your exit but then was there turbulence preceding to your exit? Were you issued any verbal notice to quit? What are the provisions of your appointment letter? How come you just left with seven days' notice?
It appears that your employers feel that they did not derive any value from the term during for which you had held some senior position. Hence they are clinging on to whatever they could have disbursed to you. Telling you to wait for six more months for the clearance of FFS amount is nothing but saying "No" but indirectly.
3rd February 2018 From India, Bangalore
The 7 days Notice Period seems to be very short to your position. From your post we are unable to make-out whether you were on a probation or confirmed employee. If confirmed than 7 days notice period is not correct. There must be some confusion. Pls confirm.
4th February 2018 From India, Thane
In respect of the services rendered by an employee to an employer as per the contract of employment, the primary consideration that is quantifiable in monetary terms and payable to the employee is the wage or salary or remuneration as agreed in the contract of employment. This entitlement of the employee is enlarged by certain other monetarily quantifiable service conditions both during the currency of the contract or on its termination as introduced by certain Labor Laws applicable like the PW Act,1936, the MW Act,1948, the PB Act,1965, the PG Act,1972 etc. In the event of non-compliance by the employer in respect of time as well as quantum, these enactments have their own in-built redressal measures which provide for levy of interest for default.
Therefore, in respect of delay or denial of such payments which are specifically covered by such Laws, you can claim interest on the amount due as per the related provisions.
In respect of any due not covered specifically by any such Laws, interest can be claimed on the premise of the breach of the employment contract for in such a situation the employee becomes a creditor to the employer.
Regarding the rate of interest, it is fixed in the respective Laws based on simple interest of bank rates. Where no rate is fixed, it is for the claimant/employee to quote it with reasonable justification. The employee has to remember that levy of interest on the amount is only to compensate the loss due to delayed payment and not otherwise. That's why there is a restriction in the PG Act,1972 that the total interest amount should not exceed the original claim amount.
4th February 2018 From India, Salem
I am not confirmed employee in the organization and accordingly offer letter my notice period is only 7 days which I have served in the organization.
I have given proper resignation with all documentation.
Pls advice what kind of penalty charge on the organization for delay FFS payment.
5th February 2018 From India, Jaipur
It seems quality of your post had confused everyone. please correct me if i am wrong . By 30 lacs Rs. unsettled FnF you mean till date uncleared dues of all the employees who resigned. Also, from your post what i understand is you were working at executive level.
Please clarify few things;
What is your gross salary?
How much FnF you are expecting?
What is your designation?
Does any one report to you?
3rd March 2018 From India, Pune
After going thru the entire correspondence it is confirmed that your Company owes you maximum 27 days salary and you were working for a Junior position. You can very well approach to Govt. Labour Officer of area where your company is situated and lodge your complaint for non-payment of your Dec. 2017 salary. You have all supporting documents such as relieving letter, handing over responsibilities, exit clearance signed by concerned dept. etc. You have very clear case but you had confused everyone by improper posting. You have already wasted > 2 months now, forget about interest and take your Dec. 2017 salary thru the labour department. The Labour Officer also will earn around Rs.5,000/- by the Grace of Deepesh.
If you still interested in punishing your employer, consult Labour Lawyer pay him fees double the amount equivalent to your final dues and claim interest for your satisfaction.
Best of Luck,
5th March 2018 From India, Thane