Dear Learned Members,
I’m assisting a small ESI/PF-registered welding firm facing a false labour complaint from someone who was never employed there.
Brief Facts:
• In Feb 2025, Mr. X came to the firm without a resume or formal application. He was brought by Mr. Y, from a competitor firm, who requested job consideration for him.
• The firm informed Mr. Y that no suitable role was available for Mr. X’s experience.
• Mr. Y said Mr. X could arrange manpower, which the firm occasionally requires. The firm said they could consider offering him a role if he could but no work/job was assigned.
• A week later, Mr. X returned demanding 7 days’ wages, claiming he had "tried to arrange manpower" and incurred personal expenses.
• As he was never hired, assigned work, or on payroll, the firm refused payment citing his claims as false.
• When refused, he became abusive, and the firm denied him further entry.
• Two months later, he returned demanding more money and started spreading false rumours in the marketplace and issuing verbal threats to firm, and to other workers, when denied any money.
• Later he filed a police complaint, falsely claiming to work from 5–19 Feb to scare the firm.
• He now filed a labour complaint claiming work from Feb 5 to June 30, stating he worked on-site from Feb 5–19 and off-site from Feb 20–June 30, using fake attendance cards as his proof of employment.
• The fake attendance cards do not have any signature of firm management.
Request:
• How can the firm legally defend itself against this false complaint?
• How to handle Labour Office inquiry when no records exist since he never worked?
• What preventive steps should small firms take in such cases for future safety?
I've shared a brief and simple summary of the facts to help learned members quickly grasp the situation and kindly guide on the way forward.
Thank you for your time and support.
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2I’m assisting a small ESI/PF-registered welding firm facing a false labour complaint from someone who was never employed there.
Brief Facts:
• In Feb 2025, Mr. X came to the firm without a resume or formal application. He was brought by Mr. Y, from a competitor firm, who requested job consideration for him.
• The firm informed Mr. Y that no suitable role was available for Mr. X’s experience.
• Mr. Y said Mr. X could arrange manpower, which the firm occasionally requires. The firm said they could consider offering him a role if he could but no work/job was assigned.
• A week later, Mr. X returned demanding 7 days’ wages, claiming he had "tried to arrange manpower" and incurred personal expenses.
• As he was never hired, assigned work, or on payroll, the firm refused payment citing his claims as false.
• When refused, he became abusive, and the firm denied him further entry.
• Two months later, he returned demanding more money and started spreading false rumours in the marketplace and issuing verbal threats to firm, and to other workers, when denied any money.
• Later he filed a police complaint, falsely claiming to work from 5–19 Feb to scare the firm.
• He now filed a labour complaint claiming work from Feb 5 to June 30, stating he worked on-site from Feb 5–19 and off-site from Feb 20–June 30, using fake attendance cards as his proof of employment.
• The fake attendance cards do not have any signature of firm management.
Request:
• How can the firm legally defend itself against this false complaint?
• How to handle Labour Office inquiry when no records exist since he never worked?
• What preventive steps should small firms take in such cases for future safety?
I've shared a brief and simple summary of the facts to help learned members quickly grasp the situation and kindly guide on the way forward.
Thank you for your time and support.
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The situation you described is indeed challenging but not uncommon. Here's how the firm can handle this:
1. Legal Defense: The firm should consult with a labor law attorney to understand their rights and responsibilities. They should gather all evidence, including communication with Mr. X and Mr. Y, to prove that Mr. X was never employed. The absence of his name on the payroll and other HR records can serve as strong evidence.
2. Labour Office Inquiry: During the inquiry, the firm should present all the evidence to prove that Mr. X was never an employee. This includes showing payroll records, employment contracts, and other relevant documents. The firm should also state clearly that the attendance cards presented by Mr. X are fake as they lack the signature of the firm's management.
3. Preventive Measures: To prevent such incidents in the future, the firm should implement a clear hiring process. This includes formalizing all job offers in writing and maintaining a record of all applicants. The firm should also consider implementing a visitor sign-in policy to track all non-employees entering the premises.
Remember, it's crucial to handle this situation carefully to protect the firm's reputation and maintain a safe and respectful workplace. It's also important to communicate with other employees about the situation to alleviate any concerns they might have.
From India, Gurugram
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1. Legal Defense: The firm should consult with a labor law attorney to understand their rights and responsibilities. They should gather all evidence, including communication with Mr. X and Mr. Y, to prove that Mr. X was never employed. The absence of his name on the payroll and other HR records can serve as strong evidence.
2. Labour Office Inquiry: During the inquiry, the firm should present all the evidence to prove that Mr. X was never an employee. This includes showing payroll records, employment contracts, and other relevant documents. The firm should also state clearly that the attendance cards presented by Mr. X are fake as they lack the signature of the firm's management.
3. Preventive Measures: To prevent such incidents in the future, the firm should implement a clear hiring process. This includes formalizing all job offers in writing and maintaining a record of all applicants. The firm should also consider implementing a visitor sign-in policy to track all non-employees entering the premises.
Remember, it's crucial to handle this situation carefully to protect the firm's reputation and maintain a safe and respectful workplace. It's also important to communicate with other employees about the situation to alleviate any concerns they might have.
From India, Gurugram
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Would prefer if learned members here can guide instead of an AI response which tend to be mostly vague and incorrect in many situations
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I'm assisting a small welding firm that contributes to PF/ESI and is currently facing a false labour case.
In February 2025, a man named Mr. X visited the firm without a resume or application, and no job was offered. He inquired if helping to arrange manpower, since the firm had no workers at that time, could lead to employment. However, no commitment was made. A week later, he demanded wages for seven days for "searching for manpower." As he was never officially hired or assigned any work, the firm refused to pay. He then became abusive and began threatening the firm in various ways. He has now filed a false labour complaint claiming five months of work, using fake, unsigned attendance cards, and the department has issued a notice.
How can the firm defend itself and what proof should it present to the Labour Officer when no one worked? Also, what steps can small firms take to prevent false labour complaints and handle threats from complainants?
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In February 2025, a man named Mr. X visited the firm without a resume or application, and no job was offered. He inquired if helping to arrange manpower, since the firm had no workers at that time, could lead to employment. However, no commitment was made. A week later, he demanded wages for seven days for "searching for manpower." As he was never officially hired or assigned any work, the firm refused to pay. He then became abusive and began threatening the firm in various ways. He has now filed a false labour complaint claiming five months of work, using fake, unsigned attendance cards, and the department has issued a notice.
How can the firm defend itself and what proof should it present to the Labour Officer when no one worked? Also, what steps can small firms take to prevent false labour complaints and handle threats from complainants?
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Dear Donna Vargheese,
In your initial post, you have written that you are assisting a small welding firm. What kind of assistance do you provide? Are you a labour consultant?
Your post provides accounts of the ordeal the firm's owner is going through. These are indeed trying times for him.
On the surface, it appears that it is a labour case; however, on delving deeper, it emerges that you are dealing with a crook who enjoys bullying unsuspecting people like you.
In your first post, you wrote that just a week after visiting your firm, Mr. X returned demanding 7 days’ wages, claiming he had "tried to arrange manpower" and incurred personal expenses.
Though your firm did not give him any verbal or written commitment, he showed courage to make such an exaggerated demand. His demand manifested his malevolent intentions. His demand harbingered what is stored for your firm in future.
As your firm did not budge to his demand, he filed a police complaint and also a complaint in the labour office, showing false attendance records. It shows that this crook, or the person who is behind this crook, had his action plan ready.
This raises a question: was Mr Y in cahoots with Mr X? Did Mr Y use Mr X as a pawn? Is it that some business rival is behind Mr X? Is Mr X a crook or a member of the extortion gang?
At this stage, you can file a counter FIR for intimidation, forgery of the attendance records, etc. However, it will require the assistance of a practising lawyer who handles criminal cases.
Further, you can approach the labour office and present the proof of how you maintain attendance records. Impress upon him that he is a fraudster and ignore his complaints completely.
You have approached this forum and sought advice. But this forum is for seeking advice on HR-related matters. However, your case involves dealing with a criminal who is using attendance records to intimidate small businesspersons and extort money. Since your firm stood up to his bullying, he took further steps of filing complaints with the police, the labour office, etc.
I wish I had written a reply to your post earlier. However, as I was busy with professional activities, I could not do so. I regret the same.
Thanks,
Dinesh Divekar
From India, Bangalore
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In your initial post, you have written that you are assisting a small welding firm. What kind of assistance do you provide? Are you a labour consultant?
Your post provides accounts of the ordeal the firm's owner is going through. These are indeed trying times for him.
On the surface, it appears that it is a labour case; however, on delving deeper, it emerges that you are dealing with a crook who enjoys bullying unsuspecting people like you.
In your first post, you wrote that just a week after visiting your firm, Mr. X returned demanding 7 days’ wages, claiming he had "tried to arrange manpower" and incurred personal expenses.
Though your firm did not give him any verbal or written commitment, he showed courage to make such an exaggerated demand. His demand manifested his malevolent intentions. His demand harbingered what is stored for your firm in future.
As your firm did not budge to his demand, he filed a police complaint and also a complaint in the labour office, showing false attendance records. It shows that this crook, or the person who is behind this crook, had his action plan ready.
This raises a question: was Mr Y in cahoots with Mr X? Did Mr Y use Mr X as a pawn? Is it that some business rival is behind Mr X? Is Mr X a crook or a member of the extortion gang?
At this stage, you can file a counter FIR for intimidation, forgery of the attendance records, etc. However, it will require the assistance of a practising lawyer who handles criminal cases.
Further, you can approach the labour office and present the proof of how you maintain attendance records. Impress upon him that he is a fraudster and ignore his complaints completely.
You have approached this forum and sought advice. But this forum is for seeking advice on HR-related matters. However, your case involves dealing with a criminal who is using attendance records to intimidate small businesspersons and extort money. Since your firm stood up to his bullying, he took further steps of filing complaints with the police, the labour office, etc.
I wish I had written a reply to your post earlier. However, as I was busy with professional activities, I could not do so. I regret the same.
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Checked)-Your advice is sound and aligns with best practices. Filing a counter FIR for intimidation and forgery is a good step. Also, presenting proof of attendance record maintenance to the labour office is beneficial. (1 Acknowledge point)
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@Dinesh Sir,
X claimed he used his own money to find manpower but failed to deliver. When he asked the firm for a week's salary to cover his expenses, they refused. He became aggressive, sending abusive and vulgar voice messages to the firm, including call recordings and WhatsApp messages (which i guess may not help in the labor department). He then tried involving locals and later went to the police with no success. Afterward, he filed a labor complaint, fabricating fake attendance records for both on-site and off-site work.
The firm took no action during the police investigation, and now it’s about proving he never worked. Mr. Y is unsure why X is behaving this way and requested not to be involved, stating he's just a small man. X is now working at another company, but the firm is unaware of where. He’s attempting to make money from the firm for the period he was idle.
I offer ESI/PF filing services for clients (chargeable), and I provide advice when issues arise by going through this website (free of charge) in order to maintain good relations with my clients.
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X claimed he used his own money to find manpower but failed to deliver. When he asked the firm for a week's salary to cover his expenses, they refused. He became aggressive, sending abusive and vulgar voice messages to the firm, including call recordings and WhatsApp messages (which i guess may not help in the labor department). He then tried involving locals and later went to the police with no success. Afterward, he filed a labor complaint, fabricating fake attendance records for both on-site and off-site work.
The firm took no action during the police investigation, and now it’s about proving he never worked. Mr. Y is unsure why X is behaving this way and requested not to be involved, stating he's just a small man. X is now working at another company, but the firm is unaware of where. He’s attempting to make money from the firm for the period he was idle.
I offer ESI/PF filing services for clients (chargeable), and I provide advice when issues arise by going through this website (free of charge) in order to maintain good relations with my clients.
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(Fact Checked)-Your summary is accurate. It's crucial to gather all evidence, including communication records, to prove no employment relationship existed. Keep cooperating with legal authorities. (1 Acknowledge point)
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Dear Donna Vargheese,
Your latest post says: X claimed he used his own money to find manpower, but failed to deliver.
Did the firm, as a purchaser, issue the Purchase Order (PO) or the Work Order (WO) to X to supply the manpower? If not the PO/WO, then did the firm enter into a legally enforceable agreement with X? If the firm did not do both, then X should not have searched the manpower on his own. To do so was his foolhardiness. To recover the losses because of his initial wrongdoing, he made further drama, assuming he could recover his losses. But he doubled down on his foolhardiness.
Anyway, the case does not stand the scrutiny of the law. Whether to pursue the case further is your client's call. However, these vexatious events could increase your client's anxiety or unhappiness. However, let your client consider that it is a test of their tenacity and move on!
Thanks,
Dinesh Divekar
From India, Bangalore
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Your latest post says: X claimed he used his own money to find manpower, but failed to deliver.
Did the firm, as a purchaser, issue the Purchase Order (PO) or the Work Order (WO) to X to supply the manpower? If not the PO/WO, then did the firm enter into a legally enforceable agreement with X? If the firm did not do both, then X should not have searched the manpower on his own. To do so was his foolhardiness. To recover the losses because of his initial wrongdoing, he made further drama, assuming he could recover his losses. But he doubled down on his foolhardiness.
Anyway, the case does not stand the scrutiny of the law. Whether to pursue the case further is your client's call. However, these vexatious events could increase your client's anxiety or unhappiness. However, let your client consider that it is a test of their tenacity and move on!
Thanks,
Dinesh Divekar
From India, Bangalore
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(Fact Checked)-Your response is accurate. No legal obligation exists without a formal agreement or work order. It's a good reminder of the importance of formalizing all business arrangements. (1 Acknowledge point)
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Dear Donna Vargheese,
1. The post you made is not falling under the ambit of labour laws are in force.
2. The case of criminal nature for issuing threat, attack and other impulsive act of criminal.
3. The topic is all about a contract for supply of manpower and materials of verbal nature.
4. There was no employment in the establishment, thus no wages or salary involved.
5. You or the person got threat from Mr X needs to file an FIR. The FIR should be for threat and abuse or dire consequences.
6. Don't entertain the person either in words or in letter.
7. The court is the appropriate authority to decide, whether the claim is justified or not in absence of Work Order or Purchase Order.
8. Let the person submits his work done or employment certificate against his claim.
From India, Mumbai
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1. The post you made is not falling under the ambit of labour laws are in force.
2. The case of criminal nature for issuing threat, attack and other impulsive act of criminal.
3. The topic is all about a contract for supply of manpower and materials of verbal nature.
4. There was no employment in the establishment, thus no wages or salary involved.
5. You or the person got threat from Mr X needs to file an FIR. The FIR should be for threat and abuse or dire consequences.
6. Don't entertain the person either in words or in letter.
7. The court is the appropriate authority to decide, whether the claim is justified or not in absence of Work Order or Purchase Order.
8. Let the person submits his work done or employment certificate against his claim.
From India, Mumbai
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(Fact Checked)-Your advice is correct. Filing an FIR for threats and abuse is a good step. The court will indeed decide the validity of the claim. Keep up the good work! (1 Acknowledge point)
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(Fact Checked)-Your summary is accurate. For defense, gather all communication records and any witnesses. Prevention can include formal hiring processes and documentation. (1 Acknowledge point)