I\'ve been employed by a service-based company for the past 5.5 years. At one point, our foreign client proposed the idea of treating us as consultants during a meeting attended by the owner of our Indian company. The majority of us agreed to this notion of being presented as \"consultants.\"
However, no changes occurred post that discussion. We continued to work for the foreign client as regular employees under the Indian company.
Two years later, the foreign client has declared their inability to pay our salaries and final settlements. The Indian company now claims that we are consultants, hence they are not accountable for our pending salaries or final settlements. They have stated that our payment will be processed only when they receive payment from the client.
When we initially joined the Indian company, neither the appointment letter nor the offer letter mentioned the client. We are officially employees of the Indian company as per our payroll. Our Form 16, salary slips, and increment letters are all authorized by the owner of the Indian company.
Currently, without any income, we are facing financial struggles. I am seeking suggestions on the appropriate legal actions to claim our pending salary, gratuity, and other final settlement dues.
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However, no changes occurred post that discussion. We continued to work for the foreign client as regular employees under the Indian company.
Two years later, the foreign client has declared their inability to pay our salaries and final settlements. The Indian company now claims that we are consultants, hence they are not accountable for our pending salaries or final settlements. They have stated that our payment will be processed only when they receive payment from the client.
When we initially joined the Indian company, neither the appointment letter nor the offer letter mentioned the client. We are officially employees of the Indian company as per our payroll. Our Form 16, salary slips, and increment letters are all authorized by the owner of the Indian company.
Currently, without any income, we are facing financial struggles. I am seeking suggestions on the appropriate legal actions to claim our pending salary, gratuity, and other final settlement dues.
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I understand your predicament. Here are the steps you can take to claim your pending salary, gratuity and F&F dues:
1. Collection of Evidence: Gather all the proofs of your employment like appointment letters, pay slips, Form 16, increment letters, etc. These documents will establish that you are employees and not consultants, and thus you are legally entitled to all the benefits and dues.
2. Legal Notice: Send a legal notice to your employer. This requires drafting a carefully-worded letter that explains your situation and demands your due payments. You may need to hire a lawyer to help you with this.
3. Contact the Labour Commission: In case your employer doesn't respond or refuses to pay after receiving the legal notice, you can approach the Labour Commission. This involves filing a complaint with the Commission, and they will mediate between you and your employer.
4. File a Lawsuit: If your employer still refuses to pay your dues, you can file a lawsuit against them. This will require hiring a lawyer, and it can be a lengthy process.
Remember, as per the Payment of Wages Act, 1936, an employer is obligated to pay an employee's wages, regardless of the employer's financial situation. Similarly, as per the Payment of Gratuity Act, 1972, an employer is obligated to pay an employee's gratuity, regardless of whether the employer is making a profit or loss.
It is also worth noting that the Industrial Disputes Act, 1947 protects workers from unfair practices, such as being arbitrarily classified as consultants to avoid paying benefits.
I hope you find this information helpful and good luck with your situation. You may consider seeking professional legal advice to better understand your rights and the best course of action in your specific situation.
From India, Gurugram
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1151. Collection of Evidence: Gather all the proofs of your employment like appointment letters, pay slips, Form 16, increment letters, etc. These documents will establish that you are employees and not consultants, and thus you are legally entitled to all the benefits and dues.
2. Legal Notice: Send a legal notice to your employer. This requires drafting a carefully-worded letter that explains your situation and demands your due payments. You may need to hire a lawyer to help you with this.
3. Contact the Labour Commission: In case your employer doesn't respond or refuses to pay after receiving the legal notice, you can approach the Labour Commission. This involves filing a complaint with the Commission, and they will mediate between you and your employer.
4. File a Lawsuit: If your employer still refuses to pay your dues, you can file a lawsuit against them. This will require hiring a lawyer, and it can be a lengthy process.
Remember, as per the Payment of Wages Act, 1936, an employer is obligated to pay an employee's wages, regardless of the employer's financial situation. Similarly, as per the Payment of Gratuity Act, 1972, an employer is obligated to pay an employee's gratuity, regardless of whether the employer is making a profit or loss.
It is also worth noting that the Industrial Disputes Act, 1947 protects workers from unfair practices, such as being arbitrarily classified as consultants to avoid paying benefits.
I hope you find this information helpful and good luck with your situation. You may consider seeking professional legal advice to better understand your rights and the best course of action in your specific situation.
From India, Gurugram
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Gratuity form I claim.pdf