Pending Dues

Please advise how to recover salary dues from employers . The employer admits that dues are genuine but does not pay in the pretext that he does not have money and financial condition was not good. The labour commissioner are not willing to act since he has jurisdiction only on workers and not on managerial staff. Early advise through e-mail will be highly appreciated.

Quite a few employees are going through this. Look at what is happening to Kingfisher. Despite DGCA instructing to pay salaries, they threw up their hands. Last month, Spicejet faced the same situation. DGCA threatened them. The employees were lucky to get their salaries. Many more companies are existing like that. There is nothing much one could advise from the point of view of a relationship between employer and employee. The company's act of 1956 could come to your rescue, if you are able to file a winding up petition. But, that's a long drawn process. You obviously have to consult a good lawyer and see whether he could help. But, do you have the wherewithal to withstand long durations being incurred on account of the slow process of litigation in India.

Well as you know that your employer/organization is suffering from a financial crisis which is not making them able to pay salaries to many employees and not only to you I believe, and you are now well aware of the present situation of your company.
We all understand it is too hard to handle the situation and many problems occurs financially for us during such bad days and when we see that we are not being paid by our employer due to any reason and just demand our pending due but you need not to forget that they have not denied to pay your pending dues/ salary.And the manager who expressed himself with the reasons and situation of company is also an employee of your company like you.
Second, I dont think you can get any benefit by complaining to labour commissioner or to any other official/department but need to wait until the condition of your company get better and when it will be stable, you will be paid by them with your all dues.

It is the duty of the inspector under shops and establishment Act to ensure that an employee gets relieving and dues. Approach him under the Act and also seek information under RTI Act, 2005 as to what steps he has taken to ensure compliance of the provision of Shops and Establishment Act regarding payment of dues.

In continuation of the previous note, it is pointed out that under section 2(f) of the RTI Act, 2005 information from a private body can be obtained if it can be accessed by a public authority.

The easiest way of recovery of dues is to seek sanction from inspector under the shops and establishment Act e.g. under section 45 of the Delhi Act and prosecute the employer. Through criminal court, chances of early settlement are there otherwise the magistrate can order for compensation under Crpc while convicting him.

Hi Ravi,
I feel personal talk and pestering could work more than legal proceedings. Going against the employer legally will do no good, he might as well delay the payment even if he can pay. I have been through this situation and hence my advice.
Regards,
Deepak Vasudevan
HR Professional

when you want to send a legal notice to employer double check that you have no issues with them , in case of any issues they might be reopened the file and replay to your legal notice .
in this process you have to bare more expenses from the returns .
my advise is follow up with employer and try to negotiate .

Hi Ravi,
I'll advise that try to understand the financial condition of your co. as up and down are the part of the life ,keep in touch with your employer and do negotiate.