Suddenly Fired Without Notice: How Should I Handle Unpaid Salary and Benefits?

I worked in an organization for more than 10 years as an accountant. Fifteen days ago, the employer started yelling at me with abusive language due to a minor issue that was not related to accounting work, even though it was not my fault, and told me there was no need to come in from tomorrow. My salary was 43k per month. They never paid me any EL/CL. They told me I would be called after two days to get my salary, but after a week of not receiving any call from them, I dropped an email to them. In reply, they told me that they would check my account next week and get back to me, but after two weeks, when I made a call to their mobile number, they didn't pick up or even disconnected the call. Then, I called the landline and spoke to the concerned employee who said he would ask the boss and inform me once the account is checked.

Please advise on what I should do next. Should I wait longer or take further action? Also, how much should I claim based on the above tenure and salary? My basic salary was 21.4k per month. Hope to hear from you soon. Thanks.

Dear Colleague,

You had not disclosed the seriousness of the lapse that happened in your work. However, an employee who has served for 10 years should not have been dealt with in this manner. A proper notice regarding the lapse in your duty should have been given, and you should have been provided every opportunity to explain your side. If you still want to conclude the contract of employment, then there should have been a proper Full and Final Settlement (F&F) and relieving letter, etc.

Now you have two options:

Option 1: Collect your dues through regular visits

Keep visiting the office at periodic intervals to claim your:
- Last month's salary
- Gratuity, if your organization is covered under the Gratuity Act
- Provident Fund (PF) details so that you can transfer the account balance to your new employment
- Notice pay (check your appointment order for this). As you were asked not to come immediately, you can claim the notice pay as well
- Leave salary for the eligible days

Wait for a reasonable time as you served 10 years, and the employer must have strong reasons to handle it in such a manner. Try to remain positive to the extent possible and collect your valuable money from the organization through frequent approaches/reminders, etc. I strongly feel that no employer will deprive any benefit to an employee who served 10 years for them. Have a deep introspection before moving to any legal remedy on this. Direct discussion will always be better and time-saving.

Option 2: Seek legal remedy

At a point where you lose hope of collecting the benefits, you may seek legal remedy by consulting a Labour Law practitioner. The nature of your job is not mentioned; hence, I could not assess whether you are eligible to get a remedy under the Industrial Disputes Act 1947. The legal option is two-fold:

A. Remedy under the Industrial Dispute Act (provided you are eligible) by way of exploring conciliation before the Conciliation Officer of your location and then, if needed, raising a dispute.

B. If you are not eligible for a remedy under the ID Act (kindly share your nature of service with an advocate to find out), then you may seek a remedy by raising a civil litigation before the court.

Take care,

Dr. P. SIVAKUMAR
Doctor Siva Global HR
Tamil Nadu

Thank you for your reply. I was a Senior Accountant in the company, which is registered under the Factory Act. My basic pay was 21.4k, and my gross salary was 43k. I was terminated illegally. Can I claim compensation and bonus as well?

I started the job in the company when it was operating from a rental premises; now it has 2-3 owned buildings. Can you please compute a reasonable claimable amount for me? Your advice would be highly valuable and appreciated.

Statutory Payments Upon Employee Departure

When any employee leaves the job for any reason (whether they resign themselves or the company removes them), the following statutory payments will be provided to that employee:

* Notice period or payment of the notice period (as per the standing orders and appointment letter of the company)
* Outstanding salary payment
* Payment of bonus (if the basic salary is Rs 21,000 or less as per the current rules)
* Gratuity payment (as per rules based on the last basic salary)
* Leave encashment (as per company policy)

Apart from this, if any other part is prescribed in the CTC on the basis of monthly payment, such as fuel charge, car lease, medical, etc., it should also be considered.

Options for Addressing Illegal Termination

From what you have told me, it seems to be an illegal termination. You can go to court asking for reinstatement; however, that is an expensive exercise.

You have the following options:

1. Send a legal notice asking for pay and also compensation. Often, that will result in the company giving your dues to avoid further problems.

2. Approach your union and ask for their help.

3. Approach the office of the Labour Office or Labour Commissioner and seek their assistance. They will also inform you if you are eligible for protection under the Industrial Dispute Act.

If neither of those options helps, then you need to go to a lawyer or to an NGO that helps people in this matter, mostly agreeing to share the compensation given to you.

The last option is to forget about the money and focus on getting another job.

Dear Sirs,

As my gross salary was $42,800.00 ($21,400 basic + $21,400 allowances) as an accountant, I worked in the company for more than 10 years. I was legally terminated from the job.

Eligibility for Compensation Under the ID Act

I want to know if I am eligible for compensation under the ID Act. If the employer calls me for settlement, should I demand compensation under the ID Act?

Regards

Determining Workman Status Under the ID Act

The question is whether you are a workman under the ID Act. The salary itself is immaterial. More important is the work you were doing.

As far as I can see (I want the seniors to confirm), if you are doing actual work, as opposed to managerial work, you are a workman. So the question is whether you were primarily doing managerial work (e.g., controlling staff, granting leave, deciding the terms of work). If so, then you are not a worker.

Considering a Settlement

If the employer calls for a settlement, hear them out. If you are getting a fair settlement, don't bother with the legalities. In any case, legal action takes time. Opt for it only if the differences are too high.

Today, I was contacted by the HR department of the company for settlement. They are proposing to provide gratuity and one month's notice pay only. There is no mention of payment for any accrued earned leaves or any compensation amount. The HR representative mentioned that earned leaves expire if not utilized within a certain period (in this case, 10 years), and therefore, only a maximum of 40 leaves can be compensated. However, they are reluctant to provide payment for these leaves as well.

Additionally, with respect to compensation under the Industrial Disputes (ID) Act, I was informed that I am ineligible for such compensation as my gross monthly salary exceeds 24,000. To provide context, my role in the company was that of an accountant, with a basic salary of 21,400 and a gross monthly salary of 42,800.

Could you please confirm if the information provided by HR is accurate? Am I truly not entitled to payment for the accumulated earned leaves over the past ten years or to compensation under the ID Act?

I appreciate your guidance on this matter, as it will greatly assist me in making an informed decision.

Thank you.