Feeling Cheated by Employer: How Can I Take Legal Action for Unpaid Salary?

I am a permanent employee of XXX and working for its client. However, I never felt like a permanent employee because I neither had any ID card nor email address of XXX. On 31st December 2015, the client ended the contract with XXX as they decided to scrap the complete project, and XXX stopped paying my salary. They even didn't give the salary for the month of December and kept it on hold.

As a permanent employee, I would expect a salary from my employer even if there wasn't any client, as we both are bound under a 30-day notice period. I tried to reach HR, but they became unresponsive and stopped picking my calls.

Before joining XXX, I had worked with companies like Microsoft, Fidelity, and Wipro as a permanent employee and never thought I would be cheated so badly. Now, I am thinking of taking some legal action against them. Please guide me on how I can take any legal action against XXX.

Regards

Understanding Your Rights as a Permanent Employee

If you are a permanent employee, you are entitled to a notice period as specified in your appointment letter. Additionally, there should be a specific termination process, including reasons for termination. Since your salary is more than 18,000, you are not covered by the Payment of Wages Act. I believe the Industrial Dispute Act also does not apply in your case. Therefore, your options may be limited to pursuing a legal case, which can be expensive.

However, the Chennai High Court has allowed a software engineer to take up a matter against TCS under the Industrial Dispute Act. It would be a good idea to meet with the local labor commissioner and seek their assistance. Additionally, consider speaking with NASSCOM. They have a National Skill Registry and a grievance cell that might be able to help.

Regards

Please visit the local labor officer with all supporting proof to register a case. If possible, also file an RTI.

Please explain how filing an RTI will help him get his salary.

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Please explain how filing a Right to Information (RTI) request will help him receive his salary.

Hello Prashant,

How long were you with this company? Being a permanent employee for a few months is different from being a long-time employee - meaning the choices, though available, would depend on 'how far' you need to or can go.

I too have heard of other similar cases recently about this company.

Regards,
TS

Hi Saswata,

Thank you very much. I will try to search and meet the labor commissioner if Collabera is not responding. Additionally, can't we go ahead and file an FIR against the company for fraud in denying what's mentioned in the Offer Letter or the true rights of the employee?

Hi Sateesh,

I have spent around 10 months in this company and completed the probation period, after which I am bound to a 30-day notice period, and so is the company. For now, I just want to resolve this issue through discussions, but in the worst situation, I would consider legal action.

Thanks.

Dear Prashant,

This is a dispute, not a fraud, unless you have proof that this was intended to mislead. The police are not going to file an FIR in this case.

Mr. Banerjee has rightly said that filing an FIR will not yield more; going the legal route will be expensive and time-consuming for you in your case against the company. If the amount at stake is substantial and you have to fight for it, then it is advisable to proceed.

Hello Prashant,

I hope you understand the reason for my inquiry about your duration of working here now. As Saswata Banerjee and Saji mentioned, if the amount involved is not very high (I know this is subjective, and only you can make a cost-benefit decision), just let it go and learn your lesson - do some due diligence about a company and the long-term options in it before you join.

All the best.

Regards,
TS