Asst.commissioner Of Labour..a.p.
+2 Others

Hello all,
There was an employee in the organization appointed recently for designer post who has 4-5 years of experience. As per our company policies we have three months of probation. Soon after which we have probation review. We do not have any training period as we are a start up company with very limited/ small group of 8 working. Since the commencement of work, the designs produced by this employee was rejected by the client and we have had discussions from the management end and the client regarding his designs and we very much need an improvement. Even though the employee was trying his best in delivering the best, he somehow could not please the client. The client asked us to replace another as they weren't happy with him. Since he is highly paid we couldn't afford for another retaining this employee. Hence the directors took a decision to relieve him from employment. We had the discussion with employee regarding he quitting the job and after he agreed we decided to relieve him. Here are some details that would give a clear picture:
Date of joining: 1 March 18
Date of resignation: 24 March 18
Final settlement as decided by the directors: Only for 15 days
The final settlement amount was conveyed to the candidate and he is unhappy about it. This kind of deduction was not mentioned in the policy. The candidate claims that he has put effort for entire 24 days and he must be paid for those days as well. But this is the directors decision that they will pay him only for the work that has been approved by the client and not for the work rejected or kept pending. The directors are little adamant about their decision saying its a loss for the company.
I need immediate assistance from you as to how can I deal with this situation? Is the decision taken correct or wrong? Are we following the right or legal track? Any further details needed please let know.
26th March 2018 From India, Bengaluru
Legally he is entitled for 24 days.
He has worked and produced designs and so cannot be left unpaid for days of work
Appraise the Board of Directors the rule position and let them decide.The employee may go the legal way and demand his dues.
26th March 2018 From India, Pune
The directors have now decided to release for 19 days. After your reply i told them the same, but they ignored the suggestion. But thanks a lot for your reply sir.
26th March 2018 From India, Bengaluru
It is really painful to learn that your establishment failed to pay the wages for his working days.
It is really hurts more, when your management release only 5 days even after suggestion from the senior members of the community. Do not forget that you are still under the scanner as you did not disburse the wages fully. The staff was not asking extra favour, rather he is asking for 24 days wages for which he put sweat & strain. You keep it in mind that no start-up company indulge in small issues which can grill and remain as hurdles for future progress. This type of message is earning bad image for your establishment, don't you consider. As you sow so you reap.
27th March 2018 From India, Mumbai
Hi Aishwarya,
You need to pay him total wages. Whether drawings are correct or not, he is eligible for wages, since put his efforts and provided service to client behalf of company.
27th March 2018 From India, Bangalore
Thanks a lot Prabhat Sir and Praveen Sir for your inputs. Unfortunately, the management wishes to bring to action their own view point where I stand down to justify because they do not consider it even after letting them know about the seniors opinions. I agree that it is not appreciable and brings a not good opinion for the resources. But I had this doubt i got myself clarified by dignitaries like you but unable to convince the directors. I shall surely try my best sir. Thanks a lot.
27th March 2018 From India, Bengaluru
You can inform to the associate that the company is ready to give 19 days, if says fine pay him soon. If he is deny the same, then check if there are any leaves taken in between 24 days if then inform him and you can remove those days and pay or else you have to pay the whole 24 days at any point.
May sure that you intimate the management that if he proceed legally, we have to face more problems or issues. Being the startup you have to tackle these situations or else obey the acts and rules.
27th March 2018 From India, Hyderabad
Yes. Good query really suit for all others also.
Two direct attacking points in the problem
1.Though that skilled employee didn't get satisfactory approval from one client... So he is unfit for your company...Policy matter decided to remove him at once.
Is it correct... If one client failed..Suppose another. Client may said ok.
First think he is your permanent employee...Honour him...And his total efforts to convince his customer..
It is not as easy as one cricket player faile he will not play next match...
But all pvt companies think like...Successful performed worker only succeeded in job..
2.point is incomplete probation removal by force..
Yours is like an artistic unit. A musician with good performance only shines in any musical concert...Like that performance oriented job categories are usually happen this.removals are so common to failed ones.
So convince the management to provide full payments of all working days... If not ...convince the employee by reminding his total failed performance dissatisfied management....Reveal him this type of target oriented....Customer satisfaction targeted jobs decide the future of the tough rules laid .
Hence Nominal payments done to him.
At last if he does not calm... The management has to pay as per termination rules laid by your company or labour laws of the land...
27th March 2018 From India, Nellore
Thank you Gannahope for your feedback. We had a pressure from the client to replace the candidate else we will lose the project. And being a start-up we could not afford for another candidate for the same post retaining the current one because the current one was highly paid. Hence we had to take tough decision of terminating the employee. Yes, not paying full wages is not fair from our end. But that directors decided to do so even after me letting them know the legal complications. So final decision was taken to pay the employee for 19 days instead of 23 (Includes his LOP). Thats the best i could ensure from my end. The same was agreed by the candidate. Hopefully we do not come across such situations again.
28th March 2018 From India, Bengaluru
Ok Aiswaryaji...
Try to pacify the employee as much as you can...If it is impossible...
Tell the management to prepare for a legal dispute which is always a headache..
Buying mental peace is always opted by any senior GENTLEMEN now a days...Pay all....Remove one........(i.e.headache..).
28th March 2018 From India, Nellore
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