Salary Reduction and Unpaid Dues: How Can I Address This with the Right Authorities?

I was working with a company in 2014. As per the offer letter they gave me, which I demanded, I saw in the appointment letter after joining that they had reduced my salary by 10% and kept it as an individual component. All of a sudden, they asked me to leave after 10 months, which I did. When I asked for my 10% back, they were reluctant to pay, providing some unrealistic reasons.

Kindly provide me with an email address to which I can write regarding this issue, whether it be the labor ministry or the human resources ministry.

Kindly elaborate on your query with more details such as the nature of your job, the industry your company is in, why you accepted a reduced appointment letter, why they asked you to leave, the reason you left before completing exit formalities, and what kind of unrealistic reasons they are giving you. Providing answers to these questions will give us more insight to offer a proper response.

All the best.
Regards.

Dear Mr. Maulik,

Thanks for your kind help and involvement.

Nature of Job and Company Background

The nature of the job was sales, and it was with an Asset Management Company regulated by SEBI, commonly known as the Mutual Fund Industry.

I joined the company in January 2014 after accepting an offer letter where the CTC was the same as I demanded. At the same time, I asked the HR person for a salary breakup or appointment letter. He said there were no hidden deductions in the CTC; it would be the same as mentioned in the offer letter. They were unable to produce the appointment letter before joining because it was against the company's rule book. As per the appointment letter, they kept 10% of my salary, and HR said they kept it as "individual."

I believed their words and joined based on the offer letter because I had never experienced such cheating in my 9 years of career. After joining, I asked for a salary breakup, but the HR person provided it 22 days after joining (all conversations are with me in written form on my mail ID) with the excuse of the CEO's unavailability.

Unrealistic Targets and Termination

As per my profile, I was performing well, but under certain circumstances, my line manager asked for unrealistic targets which were unachievable. After 10 months of joining, they asked me to leave on a performance basis.

Meanwhile, the HR person resigned from the company, and I asked the replacement about the same before exiting. She said I would get all my remunerations existing with my profile. She tricked me for 2 months, and now they are reluctant to pay, giving excuses with different norms.

The reason behind the 10% remuneration is that the employee has to complete 5 years with the company, only then will the company be liable to pay as per the rule. But these words were nowhere mentioned in the offer letter or appointment letter.

Hoping I have addressed all the questions you asked. If there are any more, kindly let me know. At the same time, kindly provide me with any email ID (any government regulatory body on grievances) related to this. It would be helpful.

Regards.

Understanding the 10% Remuneration Deduction

From your statement, I am providing you with an answer.

"The reason behind the 10% of remuneration is that the employee has to complete 5 years with the company before it becomes liable to pay as per the rule. However, these words are nowhere mentioned in the offer letter or appointment letter."

When the term "CTC" is used, it includes all the benefits that the employee will receive on a short-term and long-term basis. In your case, they have deducted an amount (10% of CTC) and informed you that this will be given to you after the completion of 5 years. I believe they have included "Gratuity" in your CTC. But if this is indeed "Gratuity," it cannot be considered "individual."

Requesting a Salary Breakup

Returning to your query about the salary breakup, it is your right to request a salary breakup. You mentioned that you have received an appointment letter. I am unable to understand why you accepted it without a breakup and then continued to work for an additional 10 months, which is unacceptable.

Additionally, if they provide you with a payslip, you may find the salary breakup in it. However, please note that in the payslip, only "Gross Salary" is displayed and not "CTC." Just for your information, 'Gross + Employer's contribution of Statutory compliance = CTC' is a common formula in the current payroll process.

Receiving Full and Final Payment

The new HR personnel informed you that "You will receive all your remunerations associated with your profile," which means she implied you would receive what you are supposed to get, not necessarily what you are requesting. You should have received your "Full and final" payment and a "Relieving letter," which will assist you in securing a new job. It is beneficial if you have already received these documents.

Advice for Future Employment

Lastly, as you are in sales and face targets and job uncertainties, but likely receive a high package. My suggestion to you is, instead of spending time on legal proceedings, focus on finding a good job. This time, do not accept any verbal communication; ensure everything is provided in writing.

If you still wish to pursue legal action, you may contact the Local Labor Commissioner's office in Mumbai and file a civil suit with all available documents. The contact details can be found on the internet.

I hope all your doubts have been addressed. Feel free to reach out for any further queries.

Regards.

Breach of Contract by Employer

If the amounts stated in your appointment letter are not paid to you, then it is a breach by the employer. Deductions from payouts or wages cannot be made except for statutory deductions, such as PF, ESIC, and TDS.

Filing a Complaint

You can lodge complaints with:
- Inspector appointed under the (name of the state) Shops and Commercial Establishments Act. It is one of the duties of the Inspector to ensure that full and final (FnF) wages/payouts and all documents to the separated employee are paid on time, i.e., by the last day in the office or within the next three days, or at the latest, on the usual payday. As per the (name of the state) Shops and Commercial Establishments Rules, the employer has to maintain various prescribed registers/forms for the amounts paid and deducted. You can obtain these from the Inspector or through RTI. The company can be penalized for falsification of records.

- Inspector appointed under the Payment of Wages Act

- Labor Inspector

Legal Actions

- A complaint under sections 406 and 420 can be filed.
- A winding-up petition can be filed as unpaid wages are a debt on the employer.

Union Support

- A complaint can be filed through Employee’s/Trade Unions like CITU, INTUC, AITUC, BMS, etc.

You may show all documents on record to a competent Labor Law Consultant, service matters lawyer, or law firm with confidence.