How Should I Handle an Employer Who Refuses to Pay My Salary After Termination?

Hi, I have joined an HR Consulting Firm on the 25th of November as an HR Executive in Gurgaon. My job and salary were target-based. On completion of one month, on the 25th of December, I asked for my first salary, and they issued a post-dated cheque for the 5th of January 2014. When I asked why they provided a post-dated cheque, especially after 10 days, they said it was to ensure that I would not quit immediately after receiving my salary, likening it to a notice period. I did not respond.

Then, on the 3rd of January, when I reached the office, the employer informed me that I need not come in from that day onwards. I was terminated with immediate effect due to poor performance, and they also stopped my payment, which I only found out through the bank.

Please suggest what I should do, as it appears that they had preplanned the entire situation to exploit me.

You can seek the assistance of the local Labour Officer/Inspector under the Shops and Commercial Establishment Act by lodging a complaint for non-payment of salary for the period you have worked in the establishment. An establishment is not expected to determine a fully variable remuneration, although in some cases, it can be tied to performance. In your situation, as you have been appointed as a Marketing/Sales Executive, the compensation can be linked to quantifiable results. However, if placement companies are included in the schedule of minimum wages, which is solely a state matter, then there should be a specified fixed amount payable to a Human Resource Sourcing Executive/Marketing Executive in the minimum wages notification. This amount represents the minimum, and any additional benefits should be based on your achievement of targets.

Termination Without Notice

Regarding termination without notice, only the terms of your appointment can clarify whether you can be terminated without notice. Typically, all appointments will be on probation for a certain period, for example, six months, during which services can be terminated without notice and without the need to provide a reason. If this condition applies, your termination cannot be considered illegal.

I hope that your salary month is from the 1st to the 30th/31st, and if so, you should receive payment for the 6 days in November and for the days until your termination.

Regards,
Madhu.T.K

Considerations Before Joining an Organization

You should always check the organization where you are joining. There are some things not disclosed by you, which can affect the answer you get.

• Do you have an appointment letter, offer letter, etc., that gives details of your employment and salary structure?
• Was there any stated notice period in the terms of employment?
• Are you an employee or a consultant/associate/professional?
• Did you actually fail to deliver, or was there any other incident/matter that we are not aware of?

In terms of the stop order given against your check, I understand from a previous discussion on CiteHR that issuing a stop payment order on a check issued against any legally enforceable debt (other than for a valid prima facie dispute) is a criminal offense punishable under sec 138 of the Negotiable Instruments Act. The other points raised by Madhu are valid, but of course, subject to you having relevant papers or evidence that you were working there.