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  • Category: Indian Law

    My employer is not paying Salary


    Have a query about employment rules? Looking out for advice on this page? Here, get advice from experts to resolve yuor concerns and get the required salary from the employer.

    I am working in a company called GOODWILL Comtrades Pvt. Ltd (Website : http://gwcindia.in) as Regional head. My employee code is 13493 in Pune, Shivaji Nagar Branch. For last 4 months my Employer is giving me partial salary (less than 50%) and last month's salary they have put on hold (No salary paid till date) on the basis of performance (there is no such condition mentioned in my offer letter).
    My Employer is blackmailing me they only release 50% salary in case I would resign from the job. They are also saying that I can go legally but their compliance team will fight and harass me mentally by running case in Chennai court (As company's Registered office is in Chennai) for 10-20 years. They will also spoil my name in the industry so that I would not be able to search a new job. As per my immediate senior, the company is planning to terminate me from the employment without paying any dues if I will not resign.

    Also would like to inform you that company has not given my appointment Letter till date but they have only issued me offer letter which I have signed and given back to them with my all the required documents as per company's check list during joining formalities.
    I am undergoing lots of financial and mental pressure. My family life has got badly disturbed.
    I want to write a lot but limitations is there. How do I get my salary dues from the company or is there any clause in the employment act that any firm or company can hold the salaries of the employee on the basis of performance without taken consent from the Employee?
    However no such conditions mentioned in my offer letter.
  • #150653
    In private companies, these type of things happen due to various reasons.

    The most common is if the company is not doing well they will start reducing the manpower to cut cost and may also go for slashing of salaries.

    In your case, it is not very clear from your narration whether this is being done only with you or with other employees also. Another important thing is the performance related and if your performance is assessed by the company as poor then you will have these types of problems.

    Anyway, first thing now required is to asses all these aspects and if you feel that injustice is being done with you then you have to meet the management to sort out the issue. If they are not able to give you high salary due to adverse market condition then you have no option except to agree.

    If it is due to performance related you have to assure them that you will be trying to improve your performance and can tell them that you will be going for some relevant professional short courses required if that can help in this situation.

    You should not take this matter lightly or with a biased mind. It requires a thorough thought process to solve and overcome this challenging problem.

    Knowledge is power.

  • #150656
    As long as the market favours the employer, such situations practically occur. I presume your employer company is a small one with less number of employees and without any trade union. Probably even then your post may not get trade union protection also.

    Though I can answer theoretically, they all will not come to your real practical help in the current situation.
    Hence I suggest you to go patiently and very diplomatically and discreetly.

    Convince the boss/bosses that whatever anger or irritation you showed was only because of your helplessness and you did not mean any offence. Convince them that you value your job. Request and convince them to give you at least partial salary so that you can manage the day to day needs.

    You should not take an offensive and confrontational posture. Use language very politely and as a request only. Starting litigation is easy. But then, it will cost you with time and money. At one time you may feel totally dejected also.
    Hence to be prudent, while showing a conciliatory attitude to your employer, you also discreetly and confidentially try for another job. At least try and get some part time job.

    Do not take unnecessary tension. There are many people who would have faced or facing such situations.

    How other employees(especially those in similar positions like you) in your company are managing and reacting? If the company is really facing problem, then you may have to show patience and even co-operate if the owners or directors are taking sincere efforts to revive the company.

    If you feel that resignation is the only way, then resign and take whatever is offered. It is better to say good bye before the situation and relationship goes worse. The earlier the better.Get a new job, even compromising a bit on salary or position.
    After that you can file a case against the company engaging some young and aspiring lawyer, to get your compensations .

  • #150659
    I would suggest do not post your details on all sites especially with your employee code. This would be inviting further trouble than you are already facing. I have been in a similar situation before and yes, life can be made far worse.

    A. Your company is a commodity trading firm and it has some complaints from clients (https://www.consumercomplaints.in/bycompany/goodwill-commodities-a330561.html). It is a five-year-old company with three directors and sounds like a family run company with a paid-up capital of Rs 85,00,000 (https://www.zaubacorp.com/company/Goodwill-Comtrades-Private-Limited/U67190TN2013PTC090365). Taking on people in the trading industry is not easy, for instance, you can have a false case filed for data theft or money misuse etc.

    B. First, do not escalate the situation. Broker a peace and stay neutral. Continue in your job, the title of regional head etc does not matter much in a small company. The job market is saturated and it would difficult to get a job quickly. If you are confident of getting a job then start working on it and then we can tackle the current issues once you have a job offer in hand. Often there would be unofficial mediators would settle such issues for a percentage of the amount recovered. Although it wouldn't be in black and white, this options helps both sides to move on if they have already reached a stalemate.

    C. Try to find out if there are other employees in your situation. If yes, how are they handling it? Whatever clause is there or not in the contract, it doesn't matter much because each of the contracts, will have a clause along the lines of ' the terms would change or be modified from time to time at the discretion of the management. See how much is your loss and how you can salvage the situation. Often running a protracted legal battle even if you have all the facts in hand is not an easy task for the common man. You need money, infinite patience and plenty of moral support because ultimately the firms often win. For one employee who wins against large firms, there would many others who have wasted plenty of time, resources in futile efforts.

    D. Once you defuse and change your approach, they would change their stance, you may find that business is dull, the margins are less, the firm has huge overheads etc. While you maintain a low, non-threat profile at work, gather as much evidence as possible right from the interview to date about official correspondences, emails, HR letters, how much salary people in similar positions are getting, bank transfers etc in chronological orders. Important phone calls with date and time with the discussion points would also help you in the future.

    E. Here you should play by the game of minds subtly and with due attention so that you can get the settlement done in a favourable manner; even if you fail, you should have enough evidence to go down the legal route. Quitely stay on the lookout for a new job and shift base. This experience would be a lesson to remember for the future.


    F. If you have the resources and want to fight it out, then enquire from a couple of good lawyers from your friends and think it out clearly. What are the estimated legal expenses vs what is actually due to you? In general, terms seeking legal help implies that you have exhausted all negotiations and reasoning with your employer and it's a big step forward. First, is to have a neat letter with the dues pending sent to the HR via registered post with acknowledgement due and certificate of posting. After a month if you do not get a reply, then send a reminder. You have to pursue with the HR and management persistently to get a reply.

    G. Under the Payment of Wages Act 1936, section 4 states that the wage period shall not exceed one month. If you do not get a favourable response, you need to approach the Labour Commissioner. The names of the various Commissioner of Labour for your area would be in this link(https://mahakamgar.maharashtra.gov.in/lc-contact-us.htm)
    The address is
    Mumbai-Pune Road, Bangla no.5,
    Shivaji Nagar, Pune - 411005
    Tel No. 020 - 25541613 / 25541619.
    Fax No. 020 - 25541619.


    H. If you still do not get answers you can file a case for recovery of dues under the Section 33(C) of the 1947 Industrial Dispute Act. This is often done in the Labour courts and the settlement would be reached in around 3 months. If you have evidence that you have been a victim of fraud practices by the firm, then you can think about the Employer fraud option under the Companies Act 2013, section 447.

    I. Lastly, think about what contact you have among friends and colleagues and to what extent they can help you, at times firms can be very intimidating and is it worth taking all the risks on yourself and your family. Or it is just safer to move on and still able to work, this unpleasant experience will always help you in future jobs.

  • #150660
    These days many companies are troubling the employees by not giving salaries and giving more and more pressure on the work. This will be true for the persons who are in top positions. Perform or Perish is the strategy these days.
    Immediately you should concentrate on shifting the job. One thing you should keep in mind is that we should not resign from the job we are holding till we get another position. If you attend an interview without any job the company will try to bargain and reduce the salary to the minimum possible. So even though the present employer is not giving the full salary, you don't resign. Search for various jobs and try to shift at the earliest. These days many employers are following such unethical practices to downsize the strength of employees. Even the people who are covered under Labour act are also suffering as many of the posts are made contractual and there is no job guarantee.
    If you want to take any legal action against the employer you can't do as long as you are in the same company. So after shifting only you can take any legal action. Otherwise, they will harass you and see that you will be resigned.
    So don't go offensive. Introspect yourselves and if you are finding any problem with your performance try to improve your capabilities and become the best in your area of knowledge.
    As far as I think your immediate action for this must be to search for a good alternative.

    drrao
    always confident


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