Stuck with Final Settlement on Hold: How to Handle Employer's Non-Compliance Issue?

Siddharth. Srivastava
My final settlement was put on hold by my previous employer due to non-compliance with a customer.

Kindly advise.
Labour Law Index
Under the Shops and Establishment Act and Payment of Wages Act, the employer has to make the payment before the 2nd day of termination. If this has not been done, it is advisable to contact your area labour inspector and lodge a complaint.
rdsyadav
Addressing Unpaid Dues and Legal Recourse

We often encounter posts about employees not receiving their dues on their last working day, with legal dues denied or outstanding payments not made, even when employees have served until the last minute. Complaints frequently arise about HR not responding or leaving the aggrieved person waiting unattended.

Employees in management positions are not entitled to claim unpaid wages under Labour Laws or any related mechanisms. They should file their case in Civil Court through a competent lawyer for money, interest, damages, etc., in the appropriate jurisdiction. The jurisdiction, as a special aspect, is usually specified in appointment letters. Filing a case outside the specified court will be rejected for lack of jurisdiction.

Understanding Workmen's Rights

The other category is workmen, whose services are protected under Labour Laws and various provisions. The definition of a workman under the ID Act is broad, covering those performing manual, skilled, clerical activities, and includes contract labor. It is crucial to determine whether one is management staff or a workman before deciding where their claims are maintainable. Often, after years of struggle, aggrieved persons are unclear about the appropriate legal authority for justice.

Proper Channels for Employment Disputes

Employment issues like termination, payment disputes, and non-fulfillment of legal conditions are handled by Labour Enforcement Officers (LEOs). Some young members suggest going to the police, which is legally incorrect and insufficient for relief. The police are involved only in law and order issues. For such problems, the aggrieved person should first write a complaint to the company's HR, politely stating the unpaid sum and the date of relief.

If there is no response, the next step is to approach the Labour Enforcement Officer in the area, attaching a copy of the complaint sent to HR. The officer can write to the company or accompany you to HR to enforce the settlement. He will address the matter as non-payment falls under his jurisdiction.

Regards,

RDS Yadav

Labour Law Adviser

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