If we take action against F&F settlement - will we face any problem in future companies?

I worked in a private company that sent out many employees at a time. Now I need a solution for my settlement claim.

Hereby, I will explain the case: the company HR sent us an email on 4th of February 2015, stating that the company is going to shift from Chennai to another district. Therefore, the last working day in Chennai would be 31st of March 2015. Those interested in changing the location were requested to inform HR as soon as possible. Subsequently, the company asked us to submit our resignations on 12th February 2015. In the resignation letter, HR requested a notice period until 28th February 2015, which we complied with. However, the company suddenly informed us to leave on 23rd February 2015.

During this time, we had pending salary issues for the month of January, and we worked until the 23rd of February. The company mentioned that we would receive the January salary separately and the February salary as part of the settlement. As instructed, we received the January salary, but the settlement calculation only included the PL and 7 days of February month's salary. They did not mention anywhere about leaving on the 7th of February 2015. Now, the Managing Director claims that they will only pay for 7 days of work in February, as per his instruction. They are requesting us to sign a settlement letter stating that we have no further claims against the company.

I am seeking advice on what actions we can take to retrieve our salary for the worked days. Where should we address this issue, and by taking action against the management, will we encounter any problems with future employers? Is there a risk of being blacklisted from joining any other company? Kindly advise on the next steps.

Dear Prabhakar,

You should have provided other important details as well, such as whether your company is a factory or an establishment, its business, total number of employees including the breakdown of workers and others, etc.

What I can make out is the shifting of HQ from Chennai city to some other place. In such relocations, some employees who are well-settled in Chennai - with children in schools, spouses employed, and so on - would not like to move and would prefer to leave after accepting a full and final settlement.

Here, the company appears to have changed its position and aims to reduce expenses by offering lower payments. This may impact a broad range of staff, from managers to workers. The local labor officer plays a role in such situations where the company is attempting to cut costs through deceitful means. Adjusting working days instead of utilizing paid leave is a form of cost-saving done incorrectly.

The poster needs to provide details as requested by our esteemed member Umakanthan for accurate advice.

Hi,

First, I would like to say, forget about blacklisting. I have myself filed a litigation against the Union of India via the Ministry of Labor & Employment, Labor Commission. In fact, I will also take advice from Mr. Umakanthan, and in the private respondent's list, two of my ex-employers are there. The nature is Mandamus and Certiorari under Article 226 of the Constitution of India. Thus, forget about blacklisting. Employers may emotionally blackmail with blacklisting, but legally there is no concept of blacklisting. I have never seen companies blacklist individuals. Yes, the said company may not hire you in the future, but that doesn't mean no other company will hire you. If such a concept exists, considering it is present only in Chennai (I have also worked in Chennai at DLF Guindy and Velachery), for which I don't have any idea, then the concept of blacklisting is violating Article 15(1)(g) of the Constitution of India. It means your company or any institution is violating the fundamental rights guaranteed under Article 15(1)(g) of the Constitution of India.

Until now, I have maintained very good relations with my ex-employers. Filing litigation or a complaint doesn't mean the end of relations with ex-employers or that you are committing a crime. Differences in views may arise. And trust me, my ex-employers are global brands.

What I need to know is whether your claim is legally valid or not. For that, I need the following information:

1. Do you have any documentary evidence stating that HR asked you to serve the notice period up to Feb 28, 2015?

2. On the letter of resignation, what is the Last Date of Employment (LDE) stated? Did you submit the resignation via software (HR related)?

3. What is your LDE in the relieving letter?

4. Do you have any evidence that your Managing Director said they would pay only 7 days' salary?

5. How many employees resigned? Do they also have the same grievance?

6. Have you signed any documents stating that you agreed to 7 days' salary for February?

7. What is the reason for leaving the company in the relieving letter or resignation letter? Do you have a copy of the same?

8. Do you have any evidence stating that you worked for more than 7 days in February?

Buddy, there is nothing to fear. All problems have solutions. Just provide the answers, and hopefully, I would be able to help you.

Regards,

Sovik B

Dear Mr. Umakanthan,

My company, Developer Pvt Ltd, has around 45 employees in Chennai, out of which only 10 employees have been sent out. I would like to inquire whether I can escalate this issue to the labor office.

Thank you.

Hi,

Sorry for the typographical error in my earlier post. It should be article 19(1)(g) instead of article 15(1)(g) which was a mistake on my part. I hope Mr. Umakanthan will provide some advice to help sort out the problem.

Regards,
Sovik B

Dear Prabhakar,

As I understand from your posts, your company is relocating its operations from Chennai to another location. Due to this change, out of the 45 employees in the company, only 10 employees who are unable to move were asked to resign by submitting their resignation on Feb 12, 2015, with a notice period up to Feb 28, 2015. However, they were unexpectedly relieved on Feb 23, 2015, before the notice period ended.

In terms of their salary, they were paid up until January 2015 only. The payment for the days worked in February 2015, from 01-02-15 to 23-02-15, is still pending. Despite the HR's directive to submit resignation letters with a notice period until 28-02-15 and the employees working until their release on 23-02-15, the management now states that they will only be paid up to 07-02-15 as part of their final settlement.

From what I have gathered, these 10 individuals have a legitimate concern regarding the wages owed to them. To address this issue legally, you will need substantial evidence to support your claim, as advised by Mr. Sovik.

Kind regards,

[Your Name]