How Can I Recover Unpaid Salaries When My Employer Demands a 3-Month Notice Deduction?

Cyalexko
Seeking Advice on Recovery of Dues from Employer

Hello All, I am sincerely looking for some direction, advice, and even possible representation regarding the recovery of dues from my employer. Please excuse this rather long essay of my grievance.

I was working for this company for just over two years, and throughout that period, the salaries were not being paid on time. However, for the past few months (from Nov '17 until Feb '18), I have not been paid. I work as the international business head for the company, focusing on the Southeast region. During my last trip to Jakarta, which lasted for 3 weeks, I returned on February 10th and resigned on February 13th, indicating the same on WhatsApp. My employer read and responded, saying he would meet me to discuss. Upon meeting him two days later, he refused to accept my resignation letter and asked to meet again the following week to discuss the appropriate transition process. The second meeting never happened. Through a series of messages on WhatsApp and some emails (which were never responded to), I eventually received my resignation letter submitted this February only a couple of days ago.

The reason I am writing this here is that the resignation letter came with a very strange comment. To quote: "Your resignation is accepted from 13th Feb 2018 as communicated to me. Also, since you were not in a position to be in Indonesia till March as desired by the company, your resignation is accepted with a 3-month notice pay deduction." The reason I was unable to be in Indonesia was explained in an email, which I am now pasting verbatim: "Your demand that I be there until March was untenable as, first and foremost, the visit was organized with a time span of 3 weeks. These 3 weeks, as you know, require very high coordination and are planned and set well before our travel with the influencers and decision-makers. My staying there after 3 weeks to get immediate results, as you speak of, would not help in any way, as the people concerned were already met and communicated with. The fact that they are very senior and extremely busy would not appreciate frequent intrusions into their time, and in that, I would do very little to further their course of action to suit us by imposing myself on them."

Secondly, you had not paid me for 3 months earlier (and this was the 4th month running), and upon my inquiry and request for the salary, you nonchalantly informed me that you have "no order bookings and no cash flow." You did not consider that I was away for 3 weeks from home every 45 days and that I had responsibilities at home to address. Your delay in paying my salary was causing extreme situations at home, and in fact, I had to borrow to make ends meet due to the lack of fluidity you were causing. Running a home without a salary for close to 4 months, despite working and not receiving any monetary gain, is highly demoralizing. But you were not worried in the least for me. But I was, and I needed to be home.

Thirdly, you reduced the daily allowance from 125 dollars to 80 dollars (without even informing me), and upon my insistence and your knowledge of that sum being insufficient, you raised it to 100 dollars. Over the last 6 months, you have accompanied me on every trip for a week, and you are aware that taxis cost around 700,000 rupiah (approximately 55 dollars). The remaining 45 dollars would just about suffice for all other expenses with caution. Considering your recent attitude of dismissively suggesting that 80 dollars would suffice, I was not going to put myself in a situation for any unspecified length of time with highly limited resources. In case of an emergency in a foreign country, as was the case in Thailand, I would not have the basic resources to fall back on.

Additionally, despite working for you and traveling for work, and despite me asking you many times to insure me for my travels, you did not do the needful. You asked me to pay the premium of 25,000 from my end and have it reimbursed from you. It was definitely not what a considerate owner would do. Considering the past and my history with you, I would have waited months for the amount. So, though the above points are included, they are by no means limited to my decision to resign, and that’s why when I came back on February 10th, I resigned on February 13th after due deliberation.

In between all of this, he was also communicating to me that the handover needed to be done first to settle my dues. This, he said, is a "must" for my dues to be settled. I clearly asked him what the connection was, as settling my previous month's salaries of November and December '17 and January '18 had no bearing on the handover, as the handover is initiated once one resigns, and this I did only in February 2018. So how were my dues connected to the handover?

However, the handover process has been completed, and despite everything that was transpiring, I have provided a very detailed and comprehensive handover. My contract states a 3-month notice period. My issue is that he says he will not pay me all my dues but will deduct 3 months' advance notice, as mentioned in his comment on my resignation. In doing this, I believe he acted with malicious intent because he did not pay me from November onward until February. When it suited him, he used the backup on pending salary, mentioning my inability to continue in Jakarta as the company desired, as a shallow and superficial means and reason to hold back my dues. Had he paid me the salary, would he have been in a position to hold back anything? So I think this was a conscious and contemplated move!

Any suggestions, please? I would appreciate it if I could reach out personally too. I reside in Powai, Mumbai. Thank you all for this long read. Much appreciated.

Regards, Cyalexko
Dinesh Divekar
Dear Cyalexko, It appears that you are all at sea. You have written a long post. The second paragraph is the longest one with 872 words. While reading it, the reader loses track, and it becomes difficult to concentrate.

Reporting Structure

To whom were you reporting? Was it the MD? You have referred to that person as "he" without giving a reference to the noun in the preceding sentences.

Legal Considerations

Anyway, the issue is not about the length of your post or its lack of structure. Your designation was Head - International Business. Therefore, how many persons reported to you? If you had subordinates, then you would not be considered a workman, and consequently, the provisions of the Industrial Disputes Act, 1947, do not apply to you. In view of this, the only legal remedy left is to file a civil suit. Therefore, you may approach a lawyer who handles these cases and discuss with him whether it is advisable to take the route of litigation.

In case nobody reported to you and you were working alone, then the provisions of the Industrial Dispute Act, 1947, could apply to you. Confirm your reply, and then we will tell you what to do further.

Feedback on Communication Skills

Now, some feedback on your communication skills. How can a person of the stature of Head - International Business inform his superior about his exit on WhatsApp? Did you leave Indonesia without informing the superior authority? If the reply to both questions is yes, then, sir, it can be said that you are yet to develop a communicative attitude. While you may be good in verbal communication, that is not sufficient.

Final Thoughts

Lastly, your post merits feedback. I understand that you had been working without salary for several months, and later your exit was also unceremonious. This has left you befuddled. However, while writing a post, you could have collected your thoughts and written it in sequence without digressing or being verbose. This kind of post hardly befits a person of the stature of Head - International Business.

Thanks,
Dinesh Divekar
Cyalexko
Hello Dinesh, I was reporting to the owner himself. No one reported to me. I was handling the business development part myself. Since I was reporting to the owner himself, all of our communication was through WhatsApp for reasons of convenience and immediate replies.

My trip to Indonesia was planned for 3 weeks, and my tickets were confirmed, with the agenda and time confirmed with him, as is the case with every trip. "No" - I did not leave Indonesia without informing the owner. He knew that I was to return to India on the 10th of Feb, and I had communicated to him while in Indonesia itself that I would be doing so.

My initial intimation of resignation was through WhatsApp - as that was the medium we had been using to communicate with each other. Subsequently, after a couple of days, I met him and offered my resignation personally.

Regards
Dinesh Divekar
Dear Cyalexko,

Your employer wants to deduct your salary for three months, stating that this deduction is due to the non-completion of the notice period. In that case, please check your appointment letter to determine the notice period you were required to serve. If it is three months, then the deduction of the salary for three months is justified. However, one of the weakest points of your employer was the non-payment of wages from November 2017. The employer should have paid your salary on time.

In your first post, you did not mention your last working day. Since you did not have any subordinates, you can be considered a "workman" under the provisions of the Industrial Dispute Act, 1947. Under the provisions of this act, you may file a complaint with the Labour Officer (LO) in your area. In Mumbai, there are two labour offices, one in Bandra and another in Thane. Please find out which office has jurisdiction over your company.

Please note that an LO is different from a labor lawyer. The former is appointed by the government, while the latter is a professional who works individually and usually for a fee. When you approach the LO's office, remember to bring your appointment letter, payslip, and identity card. Be formal when interacting with the LO's office, as government offices operate differently from informal corporate cultures.

LOs are often busy, so please communicate your concerns concisely. Inform the LO that you are seeking assistance for non-payment of wages, non-payment of eligible allowances, and a service-cum-employment certificate. If you are not fluent in the local language, consider bringing someone who can assist with translation.

Thanks,
Dinesh Divekar
Cyalexko
Issue with Withheld Salary

My employer is in no way justified in holding back 3 months' pay. My contract clearly states a 3-month notice period. I informed him of my wish to resign via WhatsApp on the 13th of February and in my resignation letter, which I submitted to him personally a couple of days later. He did not accept it, saying he would meet me next week to discuss the transition process. I had clearly indicated to the owner to consider this as my notice period. Hence, I submitted the same formal resignation letter through email. I have always been very willing to serve my notice period.

He just did not want to pay me further since I had resigned and is using the claim that I was unable to stay back in Indonesia until the end of March, as the company desired, to deduct 3 months' advance notice period. So, he considers my last working day as the 13th of February.

This has been the issue, and it is something I disagree with totally.

Thank you.

Regards, Cyrus
Dinesh Divekar
Dear Cyrus, I have informed you about how to address your grievance through a channel that the government has established. Therefore, please file a formal complaint there. Upon receiving the complaint, the Labor Officer (LO) will consider it as an industrial dispute. He will schedule a hearing to listen to both parties and provide his opinion afterward. It's important to note that the LO does not possess judicial powers; hence, his decision cannot be termed as a verdict. However, in general, employers tend to comply with the LO's ruling.

Your employer should have conducted a domestic inquiry, allowed you to present your defense, and then taken disciplinary action. Due to the lack of adherence to the due process of law or principles of natural justice, your employer's position is weak.

Regarding the members of this forum, we can only offer suggestions; however, since we have not heard from the other party, we are unable to comment on who is justified in their actions.

Thanks,
Dinesh Divekar
Cyalexko
However it may be, the fact that the owner has not paid salary since November 17 and is now claiming a deduction of 3 months, just because he can hold it, is an indication of his malicious intent. Add to this his arrogance and "do what you want to do" attitude, and I find it very disturbing. He has also blocked me on WhatsApp, now that the handover is over and done with, and does not respond to my emails. Many around me are suggesting that I serve a legal notice to him and then take up the matter accordingly. I want to check with you what the probability would be of having my dues settled going down the legal route and what the legal stance is on employers not paying salaries.

Regards, Cyalexko
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute