Employer Not Paying My Final Salary and PF – What Are My Legal Rights?

Due to organizational restructuring, my employer asked me to resign, and I did the same. However, now my employer has become unresponsive in clearing my 18-day salary for April '12 and PF amount. I am totally helpless. Please guide me on what my legal rights are regarding this.

P.S. - I was not on probation.

In fact, it can amount to termination. If you fall within the category of a workman and you have some evidence that you were asked to resign, you can claim retrenchment compensation. First, send a letter to the employer calling upon them to settle your dues without any further delay.

Options for Recovery

As far as the options for recovery are concerned, if you are a workman under the Industrial Disputes Act, you can file an application for recovery of dues under Sec.33(C) of the I.D Act. If you are not a workman, explore the possibility of a remedy for recovery under the Shops Act of your State, as some state Acts might provide for it.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Advice on Handling Unpaid Salary and PF Transfer

What is the amount involved for 18 days' salary? If the amount is in thousands, ignore it. Take up another employment. Apply for a transfer of PF. The employer cannot do anything with the PF amount. You can get it transferred to your new account.

Do not waste time on litigation. Your future employer may not appreciate it.

Regards,
Sivasankaran

The worst thing is that they deducted PF but did not submit it anywhere. I have no PF account; it's just written on my salary slip.

I am working as an HR Executive there, so I am not sure if I can get any benefit under the ID Act.

In all probability, you will not be covered by the ID Act. As Mr. Sivasankaran suggested, see whether it is really worth spending your time to recover 18 days' salary. Regarding P.F., you can directly take up the matter with the P.F. department if your employer is not cooperating.

Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai

Thank you for replying, Mr. Saikumar and Mr. Sivasankaran. Now, I have two things on my mind.

Approaching the EPF Department

1. How can I approach the EPF department?

Concern for Rights as an HR Professional

2. I am raising my voice as I am concerned about my rights and the rights of others. As an HR professional, if I am not able to secure my rights, how can I help employees and employers as an HR? It is my duty as an HR to work for the welfare of employees and employers.

1. Have they deducted PF from your salary?
2. Have they deposited the same with PF?
3. You mentioned you had been in HR, and you should have examined these issues while you were working there.
4. If you have a PF number, when you join a new company, fill out Form 13/13A for the transfer of funds, which will be done automatically.
5. If they have deducted and not deposited, then write a complaint to the Regional PF Commissioner with a copy to the Employer and Local Labour Department.

As HR professionals, we work for profitability in an ethical manner for the organization, and employee welfare is one aspect of the job. If you are concerned about your rights, then take it up with the employer. If you are concerned about the rights of others, then form a union.

Regards,
Sivasankaran

My response to Mr. Sivasankaran:

1. Have they deducted PF from your salary?

Yes.

2. Have they deposited the same with PF?

No, not at all. I don't even have a PF account number.

3. You say you had been in HR, and you should have examined these issues while you were working there.

I had asked my senior HR, and he said, "We just showed this deduction, but in actuality, there is no PF submission (it was during an informal conversation)."

4. If you have a PF number, when you join a new company, fill Form 13/13A for the transfer of funds, which will be done automatically.

No.

5. If they have deducted and they have not deposited, then write a complaint to the Regional PF Commissioner with a copy to the Employer and Local Labour Department.

I have my mail ready. I will shoot if I don't get a proper response from the employer.

As an HR person, we work for profitability in an ethical manner for the organization, and employee welfare is one aspect of the job.

If you are concerned about your rights, then take it up with the employer.

Yes, I am.

If you are concerned about the rights of others, then form a union.

Again, I am, but others left.

Very unfortunate. Based on the amount involved, take a decision. Send a letter to the PF commissioner stating that they have deducted PF and not deposited it; they surely will take action.

Send a letter to the Regional Central and also send a copy to the Local Labour Department. If you have salary slips showing deductions, then you have a strong case.

Company Details Inquiry

How big is the company? How many employees do they have? What is the turnover? What do they do? Is it a limited company?

Dear Sir, I was working as a territory manager with a Delhi-based company on a monthly take-home salary of ₹27,500 since April 5, 2014. On April 3, 2015, I received a message on WhatsApp from my immediate boss stating that "Management has decided to not continue your services from April 1, 2015." I replied, asking him to send me an email from the HR department. To date, I haven't received any communication on this matter.

Additionally, I have not been paid the salary for the months of January 2015, March 2015, and TA DA claims for December 2014, January 2014, and March 2014:

• Salary for January = ₹27,500
• Salary for February = ₹27,500
• TA DA claims for December = ₹14,000
• TA DA claims for January = ₹11,000
• TA DA claims for February = ₹16,000

Total = ₹96,000.00

I am also entitled to a variable salary of ₹36,960.00.

Notice Period Clause

As per the appointment letter, if I wish to leave the company, I need to provide a 45-day notice or salary in lieu of the notice period. If the company terminates my employment, they will provide a 30-day notice or salary in lieu of the notice period.

Please advise me on how to proceed further so that I can claim all pending dues from the management. It is also worth noting that this company has not completed any full and final settlements for employees who have left earlier.

Regards,
Amit Sood

Which sector do you work?

The dispute can be taken up through a labor officer if the company is unwilling to discuss and settle these matters immediately. Taking work without pay, violating their own terms and conditions make for a strong case against the company if it reaches that stage.