Is It Wise to Withdraw a Labor Court Case for a Promised Salary Payment?

Dear Sir/Madam,

My concern is that my friend is not receiving her salary for one month, and her company terminated her without any information, telling her she is no longer required. When she asked them for her one-month salary, they refused to give it to her. However, after three months of follow-up and reminders to the company, she filed a case in the labor court. The MD or any other office staff did not attend the hearing continuously for two times. The lawyer then advised her to file a case against them in civil court.

When she sent the last email to her company stating she was going to file a case in civil court, only then did the MD call her, telling her they are ready to give her the salary. But before that, she has to send an apology letter to them and close the file from the labor court, stating the company has given her salary and the matter is settled outside the court.

As soon as you do this, we will give you the salary. Please advise, should she close the file or not?

Regards,
DD

Hi,

Just take the confirmation from her company's side that they agree to give the pending salary. Don't close the file before reaching a mutual agreement in the presence of a lawyer for the final settlement.

Dear Dixit, There is no mention in your post about the capacity of employment of the affected individual and also whether the pending case before the Labour Court is about the alleged illegal termination of employment or for the recovery of the unpaid salary under Section 33C(2) of the Industrial Disputes Act, 1947. The learned lawyer's advice to file a civil suit further in this regard makes the situation incomprehensible. If the case before the Labour Court is against non-employment, well, the management might have adopted the same stand before the Conciliation Officer, and as such, their continued non-appearance before the Court can be a reasonable ground for setting them ex-parte. Then why did the counsel advise her to institute a civil case? The M.D.'s gesture, only after receipt of a legal notice, insisting on an apology as well as withdrawal of the pending case, signals the probability that the individual was not a workman under the I.D. Act. So it is better to heed the advice of Sum_786.

Dear Ms. Dixit,

In such a case, this settlement should be done in front of a lawyer with mutual understanding. They can make an official agreement stating that after releasing her salary, she will withdraw her case.

Thank you.

Dear All,

Thank you so much for the suggestions. The case has been settled now. The MD has given the salary, and everything is sorted out.

Many thanks,
Dixit