I was working for a engg design company and it is closed down bcos of financial constrains. Not officialy closed down but all moved out except directors. We were not paid for almost 10 months as of Nov 2020 when I resigned.
We, few people had filed Labour court and hearings are happening. In few of the management didnt attend nor sent a letter, so the officer got irritated and gave them last warning. In the last hearing they came with a calcuation for dispersing salary. They came with a formula of giving 25% of basic for 4 months and 50% for 6 months+PF and medical only. There was a labour consultant appointed by the company when we asked about the Sp. Allowance he says this is not a statutory payment and company is not liable to pay that amount. Our CTC structure is having more than 50% value in Sp. Allowance. We didnt agree to what they proposed which is nothing compared to the dues they owe us.
Can anyone shed some light on this statement of company is not liable to pay Sp. Allowance.