Struggling with Unpaid Salaries: How Can I Navigate Financial Hardships from Past Employers?

nd2302
I am facing a problem with the release of salary from my past two employers. One employer promised to pay after the FnF settlement, which was duly agreed upon, but to date, the payment has not been made. The reason given is that the company is not in a good financial state.

The second and last organization is withholding my salary, other perks, and notice period payment since Jan'14. The reason given is that the hiring is done on a contractual and performance basis.

At this stage, I am stuck without a job and facing financial constraints to cover my family expenses. I need guidance and support to navigate this situation.
Upadhyaya22
Addressing Unpaid Dues from Previous Employers

In reference to your first company, if the company is not clearing your dues, you can go to the labor court and file your complaint against the employer.

Steps to Address Issues with the Second Company

In reference to your second company, firstly, you have to check through the appointment letter whether your services are on a contract basis or of a permanent nature. Although the organization is bound to pay your complete dues as per their full and final policy. If they deny doing the same, you can go to the labor court and file your complaint.

Hoping for a proper resolution of your query ASAP.

Regards,
nd2302
Addressing Unpaid Dues from Previous Employers

In reference to your first company, if the company is not clearing your dues, you can go to the labor court and file a complaint against the employer.

Understanding Employment Terms in the Second Company

Regarding your second company, firstly, check your appointment letter to determine whether your services are on a contract basis or of a permanent nature. The organization is bound to pay your complete dues as per their full and final policy. If they deny doing so, you can go to the labor court and file a complaint.

Hoping for a proper resolution of your query ASAP.

Regards,

Thanks for the valuable suggestion. However, the second organization is now claiming that I was on a contract and performance basis and asked to leave services due to non-performance. They have not even provided any Appointment Letter with company terms and conditions for acceptance. They intend to hold back salaries as a best practice because there are more employees who are facing the same problem with the organization.

Warm regards,
Neeraj
Adv. Manoj Liyonzon
Legal Action for F&F Settlements

- Send them a legal notice through a lawyer, asking them to make your F&F settlements along with 18% interest per annum due to the delay in making the payment. Additionally, request compensation for putting you into a financial crisis under the failure of settling your payments and to perform the same within 15 days. Failing which, the same will be recovered through the labor commission.

- If the company fails, lodge a complaint with the labor commission, and the same will be recovered. The company should settle the pending dues of employees (Permanent, Temporary, Consolidated, Direct Contract); failing to do so is unlawful. Stating employee performance as the basis for F&F settlements is void. Advance wishes to you for winning the case.
9871103011
You have made it clear in your subsequent mail that in your second organization, you were on a contract and performance basis and were asked to leave due to non-performance. Therefore, your claim does not have much strength. Any complaint at this stage that you were not given an Appointment Letter with the company's terms and conditions is meaningless. As an educated individual, you should have insisted on a written contract containing the terms and conditions at the time of joining. Therefore, you cannot speculate about their intention to withhold salary at this point.

Information Required for Full and Final Settlement

We need the following information to assess the exact nature of your claim for a full and final settlement with your first employer:

- Please specify the exact nature of your appointment - whether it was a regular appointment or a contract.
- If it was a regular appointment, have you fulfilled the conditions of it? Have you resigned by serving the required notice as stipulated at the time of joining, or have you abandoned the service without notice?

The company's claim that they are not in good financial condition to settle your dues is merely a weak excuse, which holds no weight in the eyes of the law. I suggest you put in writing that if they do not settle your dues within one month, you will be forced to file an application with the labor authority. I am confident this approach will be effective.

Regards,
BS Kalsi
Member since Aug 2011
D.GURUMURTHY
You are already in a financial crisis. Sending a lawyer's notice and approaching them will further burden you financially and strain the relationship. You have continuously contacted them by explaining your financial requirements and asked them to clear at least in installments as they are also facing financial problems.
9871103011
I do not agree with Sh. Manoj Liyonzon suggesting the individual go to court through a lawyer. I agree with your apprehension that going to court involves a lot of expenditure and delay in the settlement of the case. The individual can file an application under Section 15(2) of the Payment of Wages Act, 1936 for the delay in making payment before the Authority, where you don't have to pay anything, and the settlement is quicker.

Regards,
BS Kalsi
Member since Aug 2011
Adoni Suguresh
I fully agree with Mr. B.S. Kalsi. If an employer refuses to pay an employee's salary either regularly or in full and final settlement upon leaving the service, the employee shall have the right to approach the Labour Enforcement Officer of jurisdiction and raise disputes for non-payment of salary, as stipulated in the Payment of Wages Act, 1923. The authorities shall intervene in the matter and settle the payment by raising conciliation as per the Industrial Disputes Act.

Sending a lawyer's notice and seeking intervention of a court of law is not required at all. When the Labour Enforcement Officers are exercising their powers for the implementation of the laws, there is no need to approach the court or advocate. First, you should approach the concerned Labour Officer to address your problems.

I hope this clarifies the process.

Regards,
Adoni Suguresh Sr. Executive (Pers, Admin & Ind. Rels) Rtd Labour Laws Consultant
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