Wrongfully Terminated for Alleged Fraud: How Can I Claim My Salary and Incentives?

Dear Sir, my name is Amit Kumar Karan, and I have been working with an automobile company as a Warranty Incharge for the past two years. Unfortunately, today my employer has terminated me with immediate effect, citing reasons that I have been committing fraud against the company. The true story is that, as a Warranty Incharge, I have the authority to provide parts worth up to Rs. 20,000 under warranty to customers. I had provided Rs. 14,000 worth of parts under warranty with the permission of our General Manager. However, the GM Service has now made a U-turn, accusing me of fraud, leading to my termination without any prior notice and withholding of my salary.

I seek your advice on how I can file a complaint in the labor court against my employer to claim my salary and incentives.

Thank you.

Hello KKAMI...

You have the documents as proof in which it is written that you have the right up to a limit of 20000. Alternatively, when you gave Rs. 14000 to the customer as a warranty with the permission of your GM, the GM signed some permission documents. You should show those documents to your higher authority.

Legal Steps for Labor Disputes

Going to court is a lengthy process that requires both money and time. Initially, you must visit and consult with the labor officer in your area, who could be the inspector under the Shop and Establishment Act or the labor commissioner appointed by the state government. Without information on the state, location, or type of establishment you are associated with, we cannot provide further details.

If the labor commissioner is unable to resolve the issue, you will then need to seek assistance from a lawyer specializing in labor disputes.

Illegal Termination and Steps to Address It

The first issue is your illegal termination. Since you have been illegally terminated (hopefully in writing), you may send a letter/notice via Registered Mail with AD post demanding reinstatement immediately. Thereafter, you may approach the Labour Commissioner to raise a dispute and proceed with initiating litigation against the company in the labor court.

Withholding of Salary

Regarding the withholding of salary, it is also illegal. You may demand the salary in writing in a similar manner. For convenience, you may include the issues of reinstatement and outstanding salary in the same letter.

Dear Mr. Amit,

You have stated that you were employed as "Warranty Incharge." What is your monthly gross salary? Which month's salary is due? What is the amount of salary due? What are the contents of your termination letter? As per your appointment letter, what is the notice period termination clause?

In the absence of the above information, I am not in a position to conclude that you come under the definition of "workman" as per Sec 2(S) of the Industrial Disputes Act, 1947, to approach the Labour Court.

If your monthly gross salary is below Rs18,000/-, you can initiate action under The Payment of Wages Act, 1936, for the recovery of salary.