Long-Term Cash Salary Without Benefits: Can Employees Seek Compensation Through Authorities?

I want to know if an employer does not give someone a salary on the payroll for more than eight to ten years and does not provide any facilities such as a provident fund, etc., can the employee claim compensation through government authorities by filing a written complaint for not receiving these benefits for such a long time? This is a significant issue today as many employers are not paying salaries on the payroll to their employees.

How will you prove that you are entitled to your salary? Was your name on the muster rolls of the company, along with the others? Only in such a case will you be able to fight with the company. All you have to do is approach the government labor office in your area and seek their guidance on the matter.

Is bonded labor still practiced?

Is there still bonded labor practice? It's difficult to believe, or is it a hypothetical situation? In case this is a real issue, it would be highly sensational, and the Supreme Court/High Courts are not likely to delay taking appropriate action once it is brought to their notice. Article 23 of the Constitution of India prohibits forced labor, and the Supreme Court has acted swiftly and categorically in such matters in the past. The remedy under labor laws is available, but approaching the constitutional court would be a faster and more effective remedy. NGOs like PUDR and PUCL have made a name in this field of litigation.

Dear friend,

You are raising a significant concern. Are you certain that some employees have not received their salaries for the last 10 years and have left without compensation? If so, please gather all the necessary details and present the case clearly in accordance with labor laws.

Dear Gopinath Ji,

I received my salary in cash without any benefits such as ESI and provident fund. What can be done in this situation?

Thank you.

If an employee doesn't get his salary for 2 months, he starts making a hue and cry with the employer. How come after these many years you brought this issue on this platform? Your case is sensitive and will require lots of clarity on employment and documentary proof to make the case strong and genuine. Our seniors here can only give comments subject to the complete availability of information.

Unfair Labor Practices in the Organized Sector

Such practices are quite ubiquitous and in vogue due to the heavy incidence of unemployment in the organized sector. Unscrupulous employers exploit this situation to keep some employees off-rolls for years, while employees remain tacitly patient in the hope of regularizing their services one day. This is an unfair labor practice on the part of employers as defined under Section 2(ra), read with the list at serial no. 10 of Part-I of Schedule-V, and prohibited under Section 25-T of the Industrial Disputes Act, 1947.

However, being an accomplice to such a forbidden practice for years, how will you prove it later when you leave the job? An employer in an organized industry may have several unorganized supportive business ventures, such as shops supplying raw materials or transport facilities, that are outside the purview of social security legislation like EPF, ESI, and the Payment of Gratuity Act, 1972, either in their own names or in the name of their relatives. You might not actually know where you were employed. It is very difficult to prove and reclaim all the due benefits you lost by instituting any sort of litigation.

I want to know if an employer does not provide any facilities related to the provident fund. After leaving the job, can the employee claim compensation through government authorities by filing a written complaint for not receiving these benefits for such an extended period, particularly after two years of leaving the job?

Thanks

There is no provision in the PF statute or elsewhere to claim compensation from the government for depriving PF facility. However, PF authorities can recover PF contributions along with interest, damages, and compensation for failure to comply with the PF Act. But before that, please ensure you are under the coverage of the PF Act (drawing < Rs. 15,000).