How Should I Handle a Recruitment Company Withholding My 2 Months' Salary?

Hi, Guys. This is regarding a recruitment company where I worked for 7 months, and they have stopped my 2 months' salary. I went for 10 days after getting verbal permission from them. Surprisingly, one day I got a call from the manager stating that the management does not want me to continue because I couldn't meet my assigned targets.

Please suggest what to do as they are not paying me the 2 months' salary.

Answer my question so that I can suggest a solution. Has your termination been initiated by the employer? Have you achieved your targets for all seven months? Is there any clause in your offer or appointment letter stating that if you fail to meet the target, your salary will be put on hold? Do you have any conflicts with your employer?

Thank you.

Yes, my termination was made by my employer. No, I could not achieve my targets for all 7 months. In fact, none of the employees achieved their targets. No, such a clause is not mentioned in my appointment letter. No, I did not have any bad terms with the director; it was my team leader who created a bad image of me during my absence.

Have you spoken to your HR? First, you should explain to your HR regarding your salary payment. If she hesitates to give you the salary, then ask for the reason.

Finally, try to speak to your director and explain your situation, asking for the reason. If no one cooperates with you, then inform them that you will take legal action.

Salary Issues with Recruitment Company

This is a recruitment company having a team of 5 staff. The Director is taking care of all salary issues. I called the Director, and she mentioned that until she confirms the date for releasing my salary herself, she cannot provide further information. I am writing an email to her, but she has not replied yet.

Regards

Then, you tell them that I'll take legal action. First, try softly, then consult a good lawyer. Always be polite for the first time, then show them your strength.

It's unfortunate to hear what happened with you. However, please share a little more about the exit process in the firm. How did you resign, and what was the discussion that you had with your reporting manager at that point in time?

Hello Tanya Negi, You mentioned that the Appointment Letter doesn't mention any link between performance and not paying your salary. Maybe Bharathi used the wrong or deviating words. Please recheck your letter. Usually, any Appointment Letter has terms related to performance—not necessarily mentioning the situation you are in right now—'verbatim'. I suggest checking it once again. Usually, whatever is mentioned (including the wording), such clauses end with "...at the discretion of the Company/management..." or something similar.

You mentioned that the Termination was made by the Employer—you didn't mention the written reasons given by the company while doing so. What are they? Are they the same as what you mentioned they gave verbally—"could not meet my assigned targets"?

You also mentioned in response to Bharathi's query that "...in fact none of the employees achieved" with respect to the targets. Please confirm how many employees were terminated—including or excluding you? And what is the 'number' of employees you are referring to?

Regards, TS

Hi (Cite Contribution), Management issued me a salary check for the month of May, but there was an error in the date. Instead of the year 2011, it was written as 2001. I called my director and requested her to correct it. However, she instructed me to submit it to my reporting manager. She mentioned that once my reporting manager is back in the office, she will correct the date and submit it to my bank account.

In between, due to some unavoidable reasons, I had to go on a 13-day leave. I requested the management for the same, and my reporting manager asked me to write an email to the management. I followed the instructions and received verbal acceptance. However, when I called on the 4th day of my leave to inquire about the status of the check, my director informed me that due to not meeting the assigned targets, I will not be paid. She further stated that the management has decided not to allow me to rejoin the company.

I am facing difficulty in communicating with them as they are not answering my calls or replying to my emails. Please advise on how to proceed in this situation.

No, I trusted my employer and submitted the cheque without keeping a photocopy with me. It was not processed in my bank, so I don't have any proof.

First of all, go to your office and request your salary. If they are not interested in paying you, then directly approach the labor court. Definitely, you are going to get your salary back.

Regards,
Vinay Kumar

If you don't have a copy of the cheque, did you note down the cheque number and the bank branch from where it was issued? I am asking because if you have any of such details, it can help you to a great extent in case you opt for some legal action against your company.

Dear Tanya, Please tell me what is mentioned in your appointment letter.

1) Is there a mention in your appointment letter that there is a six-month probation period?
2) Is there any clause mentioned in your letter?
3) According to the rules, if you resign yourself, you have to give one month's prior notice, or if the company discontinues your job immediately, they compensate one month's salary in advance after confirmation.
4) After the probation period, if your work is not satisfactory, the company will discontinue your job either by giving you prior notice or not.

Please specify clearly why they are not paying two months' salary. Please let me know the accurate reason.

Regards,
Rajesh Samkaria

Dear Tanya, it generally happens in recruitment firms/consulting. If you went on leave with prior permission, then how can they terminate you? It's exploitation, but it happens in recruitment. Don't waste your time calling, as you mentioned no response from the employer. Speak directly to the employer about your salary, as you have served and spent your time. They shouldn't refuse. If they are not ready to pay, then warn them that you will go for legal action. In the end, see what happened to others who failed to hit their targets.

Regards,
Nitin - HR High Risk

While many of the members have been trying to suggest various ways to resolve the issue at hand, you still seem not to have clarified the query I raised earlier in the discussion—repeating below for your ready reference.

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You also mentioned in response to Bharathi's query that "......in fact none of the employees achieved" with regard to the Targets. Please confirm how many employees were terminated - including or excluding you? And what is the 'number' of employees you are referring to?
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Also, please confirm if you were the only one whose salary was stopped or were there others?

I get a feeling that there's something more to the issue than just what you mentioned—no employer takes back the salary after issuing a cheque without a strong reason, from their perspective, i.e., what happened between the two timeframes? I can see quite a few possibilities.

Unless you give the overall picture to the members, you won't get a practical and realistic solution to your problem. Whatever is suggested based on half-baked inputs or partial inputs will invariably turn out to be inaccurate and inadequate to resolve your problem. The consequential conclusion that may come from your end could be: no one in this forum helped me.

Regards, TS

It is really unfortunate what has happened to you. Meeting the target is one issue; however, in that case, the incentives can be stopped, but the fixed salary should be paid to you. I suggest you approach the management again through correspondence. Also, please copy the same to the concerned labor department; they will certainly help you.

Thanks & Regards,

Sumit Kumar Saxena

[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

Tanya, just go to the labor office and file a complaint. You will get your money.

In Bandra (West), near a lake/garden, there is a small court. Go there. They help those who are not earning without charge. You can file a complaint with them, and they will call your employer to pay your money.

Dear Tanya, It is not understood whether you resigned or were terminated by your employer. If you were terminated, then the termination is illegal, and they need to provide notice as per the terms of your employment outlined in the appointment letter.

It appears that you may have been asked to resign and you complied. In your appointment letter, they may have specified the notice period, probation clause, etc., which serve as important guidelines for your employment. Please share the contents of your appointment letter with the forum so that you can receive proper and just advice.

Warm Regards

What I understood from Ms. Tanya's input is that:

1. Her lady boss doesn't want to release Mr. Tanya's salary.

2. I hope no such productive or affirmative meeting or discussions took place where Ms. Tanya, her team leader, HR, and director were present.

3. HR/Director should submit a reminder to his recruitment for not meeting timely targets. But Ms. Tanya hasn't received such a letter.

4. The appointment letter is just a normal one and doesn't have a clause supporting the decision (salary held) taken by the company or director.

5. What I feel like, legal action can be taken only if the director fails to respond after having gone through the complete story. Mr. Tanya should have a discussion with her director in the presence of her team leader and HR to evaluate the facts followed by a final productive and unbiased decision.

With profound regards

Dear Members, I met my Team Leader yesterday evening while returning home. When I asked about my salary, he argued with me very badly and warned me not to call again. He said it is the company's decision to pay or not, and I should focus on my present job.

When I called my director, she mentioned that she is going to America for 2 months and I should coordinate with my team leader. However, the team leader is unsure when they can pay my salary.

Please advise, as it has already been 3 months, and I have spent so much on calling as well as sending emails from the cybercafe. But no use.

Addressing Workplace Harassment and Salary Issues

Hearing that your team leader spoke harsh words to you is truly a shame. Secondly, consider the advice to go through the proper channels. File a complaint with the labor department. If they do not respond, file a complaint seeking a reply under RTI. This way, the whole situation will come to light, and compensation can be designed accordingly.

Thanks and regards,
Sumit Kumar Saxena
[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

I feel upset to know about such entrepreneurs and employees who are the cause for one to go wrong. I would suggest you visit the LABOUR COMMISSIONER with all relevant documents, provide him with in-depth inputs, and seek his advice. I hope he will do justice for you, and I sincerely hope that the labour commissioner is not corrupted, as he could influence the situation with your ex-employer.

Approaching a well-experienced lawyer will cost you money, but since you haven't received your salary, I don't suggest seeking legal support. However, you can seek his advice if you know anyone who can help.

With profound regards,

I want to send one final email to my team leader regarding the release of my two months' salary. Please advise me on how to proceed as they have instructed me to wait (the date has not been confirmed). If they do not comply, I will definitely take legal action against the company.

Regards

Greetings for the day. Since you have already waited long, there is no need to wait again. Follow the path suggested by various members; all are extending their support in your favor.

Thanks & regards,

Sumit Kumar Saxena

[Phone Number Removed For Privacy Reasons], [Phone Number Removed For Privacy Reasons]

Labour Court Assistance for Unpaid Salary

Justice S.C. Pandey, Presiding Officer, CGIT-cum-Labour Court No.1, 1st Floor, Shram Raksha Bhavan, Opp. Priya Darshini, Eastern Express Highway, Sion-Chunabhatti, Mumbai - 400022.

Shri S.B. Panse, Presiding Officer, CGIT-cum-Labour Court No.2, 2nd Floor, Shram Raksha Bhavan, Opp. Priya Darshini, Eastern Express Highway, Sion-Chunabhatti, Mumbai - 400022.

Also, as mentioned earlier, go to the court in Bandra West. It is located on the ground floor of one building. They offer support free of cost for unemployed people. They will call your employer to ensure your salary is paid immediately. You don't need to write anything now. These officers will write on your behalf to your Director or team leader. Make sure to go with a copy of your appointment letter.

It is unfortunate to hear about the things that have happened to you. Could you please clarify the following matter?

Is Your Salary Based on Performance?

If not, you have the option to go through legal channels. Before taking any legal action, I recommend reviewing your offer/appointment letter and the associated terms and conditions. If your salary is indeed performance-based, they still cannot withhold your monthly salary.

I hope this helps. Let me know if you need any further assistance.

Best regards,
Regards

Going through your post and the situation you are in, you mentioned somewhere that you have been given a termination letter. In such a case, take a copy of the letter and send them a legal notice under the Industrial Dispute Act or (MRTU & PULP Act for Maharashtra). These laws are applicable only for workers and labor categories.

Since you are in the executive grade, which falls under skilled employment, you can approach any civil court and send them a legal notification. In case the termination has been sent to you verbally, then the above cases won't help you as you don't have valid documentation against your employer.

Targets not being achieved is part of the sales process, and you alone cannot be blamed as there are various other factors that contribute to collaborative failure, including your failure to achieve targets. The employer cannot withhold your salary unless you have violated the organization's code of conduct, which in your case is not applicable.

What you can do is resume work and inform your boss that you won't resign. Ask them to provide you with a termination letter which you can use as per my above suggestion of sending them a legal notice.

Regards,
Dev
HR Manager

Steps to Address Unpaid Salary and Termination

I suppose you are a "workman" as defined under the ID Act, 1947. First, you may send a letter under RPAD to your employer stating that 2 months' salary is due from him and that you have been terminated illegally. Ask him for your reinstatement in service. Wait for two weeks for your employer to respond. Depending upon the reply, you can take the next course of action.

You can finally file a claim petition under Sec 33C(2) of the ID Act for recovery of salary due and challenge your termination under Sec 2A after filing a claim petition before the conciliation officer and completing the due process. If your employer is prudent enough, he would settle the issues amicably either before or immediately after your filing of the petitions.

Regards,
Sanu Soman

Dear Members, many thanks for your love and support. I would like to inform you that I have secured a better job in an MNC with good pay, which is just double what I was receiving in my previous company. I am currently residing in Delhi. Therefore, I kindly request your assistance in providing me with some contact numbers of lawyers in Delhi with whom I can discuss my situation and seek guidance to resolve this issue.

Additionally, please advise if I need to go to court as I have recently started at a new company.

Once again, thank you all for your continued support.

Best regards.

Hi, dear. My employer has not paid me my salary. I joined the company in February '11 and resigned by giving a one-month notice period. However, now my GM is saying that I have to serve a two-month notice period, even though I have not received my appointment letter. They are showing my signature on the appointment letter, which was not mine. Currently, they are withholding my salary for June and the first 12 days of July '11, and they have also deducted my bonus. Please advise me on how to get my salary released, as I also want to teach a lesson to the GM. Thank you.

Nice to hear that you have got a job with double the salary of your previous employment. I suggest that you should put the name of your previous company on the internet or some social site warning people about joining that company. You can even put the name of your Team Leader online. I think that by knowing this, they will feel some shame and embarrassment and may release your salary. Anyhow, it all depends on you whether you want to do this or not.

All the best for your new assignment.

Regards,
Satinder Pal Singh

First of all, thank you for your kind reply. I resigned with both an email and a hard copy, but initially, it was not accepted by the management. I resigned with a one-month notice period, but at the time of my departure, the management insisted that I give a two-month notice period. I refused and quit. Please help me.

Regards,

Legal Actions for Salary and Termination Issues

Regarding the discussion about the salary issue and termination, I suggest that you can take legal actions as per the Payment of Wages Act, 1936, and the Industrial Disputes Act, 1947. You may also consider reaching out to the local union or the nearest Government Labor Office. By doing so, you will definitely receive the salary that you deserve.

Regards,
Nitin
HR & Legal Matters
[Phone Number Removed For Privacy Reasons]

I work in a certain BPO, and I have been on the bench for the past three months as the process has not started yet. However, they are not paying my salary, saying that it will be paid when the process starts. I am very lost about what I should do. Please help.

I was working in an organization, but 15 days' salary is pending. They have not given me my money, and I have been trying to contact the HR Department several times, but there has been no response. What should I do now? Please suggest to me.

Regards,
Prakash.pydi

I was working in a very small office six months ago. Initially, the salary was paid, but after six months, the company stopped paying, causing all staff to leave their jobs. In the end, I also left my job. I have an appointment letter, experience letter, and relieving letter. The salary was paid in cash, not by cheque. My total pending salary is Rs. 65,000, which is still unpaid. The office is now closed, so nobody can sue him. His total debt is around 50 lakh. All employees who left have also not been paid their salaries. What should I do? I worked there very sincerely, as if it were my own office.

Thank you.

I worked for 4.5 years in a company but was not paid salaries regularly. A salary was paid bi-monthly on a request basis. They requested us to stay back, assuring us that good days would come, but even after 5 years, they have not paid. Currently, employees are not attending duties and have locked the company.

What Should I Do Now?

I left the company through the proper channel and received a relieving letter only, without a pending salary certificate.

1. What is the procedure to get my pending dues?
2. To whom should I reach out to get them?

Thanks and Regards,
Narayana

I worked at a reputed logistics company as a Business Development Executive for the past 20 months. Recently, my manager sent an email to HR to mark those of us who don't meet the daily set target as LOP or absent.

On average, only 4 out of 20 people meet the target daily. Interestingly, our appointment letter doesn't mention that our jobs are purely target-oriented. It does state that if we fail to meet targets, our salary will be withheld. While we do receive some variable pay linked to our performance, it doesn't cover the entire salary.

When we approached HR, they mentioned that they follow the manager's instructions. In this situation, what steps should we take? If HR marks us LOP or absent after a full day's work in the field, what actions should we consider?

Regards,
Amit

One of my friends is facing a similar issue. Her employer has stopped her 1-month salary, stating that due to non-performance, this month's salary is on hold. She has completed 8 months in this consultancy and has performed well for 5 months consecutively.

Resolution for Salary Hold Due to Non-Performance

Kindly suggest the appropriate way to resolve this situation. Her offer letter mentions, "...the managing partners have the right to terminate your services without giving you any notice in case of any integrity, character, or non-performance issues. You are not eligible for any salary or incentives under the following circumstances: 1) Your services are terminated due to any integrity, character, or non-performance issues 2) You leave the organization without giving a month's prior notice."

Please help.

Regards

My employer has not paid my salary and other travel expenses. Today is the 20th day, i.e., 20 days since I resigned from my company. The employer asked me to resign as there is no work. So, I started searching for a new job and inquired about my salary. However, the employer does not pick up the phone; he only sends messages saying, "I will call you." Now, it has been 20 days. What should I do? I am the sole earning member in my family. Can anyone suggest what I should do to receive my salary and travel expenses from him? Please advise me. I am from Mumbai.