i had one employee in my office.the firm registered is filing nil sales tax returns for the last 3 years.no appointment letter is given or any registers are maintained.EMPLOYEE HAS SENT A LEGAL NOTICE THROUGH LABOUR OFFICE THAT HE WAS WORKING AS EMPLOYEE WITH US FOR THE LAST 20 YEARS,NOT SURE OF WHICH 3 DIFFERENT FIRMS ON OUR OFFICE ADDRESS ,DRAWING 2,500 MONTHLY SALARY.HE CLAIMS THAT WE HAVE MADE HIM SIGN FAKE VOUCHERS/BLANK PAPERS,ETC AND HAVE THROWN HIM OUT WITHOUT PAYING HIS ARREARS. HE HAD BEEN COMING TO OUR OFFICE AS A JHALLI WORKER(TO GATHER DELIVERY CHALLANS TO BE GIVEN TO TRANSPORTERS KEEPING HIS COMMISSION UNDER FREIGHT CHARGES.HE WAS PROBABLY DOING THE SAME WITH MANY OTHER TRADERS.AT TIMES OF RAIN,HEAT,ETC HE USED TO SIT AROUND OUR OFFICE AND SOME TIMES STAYED OVERNITE IN A SEPARATE ROOM WITH US.WE ALLOWED SO FOR OUR SECURITY PURPOSE.IN THE TIME BEING HE WAS GETTING LETTERS FROM LIC,VILLAGERS ETC DELIVERED AT OUR OFFICE WHICH WE DID NOT OBJECT .HE HAS SOME RELATIVES WORKING AROUND WHO ARE READY TO GIVE THEIR STATEMENTS IN COURT AS WITNESS. OUT OF 3 FIRMS STATED BY EMPLOYEE,1 FIRM IS NOT OPERATING FROM THAT ADDRESS,HAVING TURNOVER OF 1-2 LAC. 2ND FIRM IS AN HUF FIRM WHERE NO TRADING TAKES PLACE ,BUT HAS A SAVING ACCOUNT FROM THE OFFICE ADDRESS WHERE SOME BEARER GHEQUES WERE ISSUED TO HIM FOR LOAN FORWARDED TO HIM OR TO WITHDRAW FOR OUR PERSONAL PURPOSES. 3RD FIRM IS FILING NIL SALES TAX RETURNS FOR LAST 3 YEARS. NO APPOINTMENT LETTER IS ISSUED.NO RECORDS ARE MAINTAINED. HE CAME SOME 18 YEARS BACK,THEN VANISHED ,NOW COMING FOR THE LAST 6-7 YEARS. WE WERE READY TO PAY HIM SOME COMPENSATION TO AVOID LEGAL PROCEDURES,BUT HE CLAIMS HIGH COMPENSATION OF AROUND 35,000.PL ADVICE URGENTLY WITH RESPECT TO DELHI LABOUR LAW/INDUSTRIAL ACT DISPUTE 1. HOW MUCH SHOULD I PAY AS SETTLEMENT CHARGES? 2. HOW MUCH CAN THE LABOUR OFFICE ,LABOUR COURT,DEEMED EMPLOYEE ,LABOUR OFFICER,INSPECTOR,ETC ASK ME TO PAY UP? 3. HOW STRONG IS MY CASE?