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  • Category: Indian Law

    Getting due amount from employer

    Wondering how to claim due from an employer after leaving a job? Searching for the correct and effective course of action? Check out this page and understand how to proceed further.

    I worked in a small company as a VP for 10 months. Unfortunately I was not having any offer letter issued by them and they didn't create any employee id in their system but created mail account.

    I used to communicate with clients with that mail id and used to attend meetings also.

    They agreed to pay monthly salary and shares at the time of formal discussions and I joined with trust and continued for 10 months. As that company was having serious financial crisis they said they will pay as and when they get funding. Couple of times they paid small amounts but not matching to my salary.

    Not sure how I worked there without offer letter, without company employee id but just with trust.

    After that as things didn't improve I separated from them. At the time of separation they committed that they will clear the dues in installments. A year passed by and till now they have not cleared a single rupee. When I ask COO of that company, he says he will but till now nothing has been done.

    I know that I made mistake.

    Can you advise on how I should proceed?
  • Answers

    8 Answers found.
  • According to me no employer will deny the eligible payment to his employee on his quitting. The main thing is he or she should give proper time to get relieved, handing over all dues to the company/organisation, resigning in the proper way, handing over the responsible papers if any, handled by him/her during his/her employment. If all any of the above formalities fulfilled you can get your dues without fail. If there is no such formalities in your organisation, you may write to your owner or it is better to meet in person explaining the situation forced you to leave the job.

  • You know the reason of their non-payment. Real financial difficulties. So what you can do is remind them periodically. Personally visit them also.
    The next option is to go for legal action. But that is not at all going to help you. Just have a guess of what is the amount you should get and calculate what will be the expenses for going for legal action. It will not be worth. If the company does not have sufficient assets then recovery will not be possible also.

    Only persuasion and perseverance can be of some help. You should ensure that you are not made involved i anything on behalf of the company which will put you in difficulty and binding you also.

  • Under such circumstances the only way is to talk with them cordially and get your dues. If their financial condition is not good they will not be able to clear the dues immediately.
    You can not go for a legal recourse as your documents are not there. This is really a difficult condition to chase them for your dues.
    Please keep in continuous touch with them. As anytime they may agree to pay you in parts as per their cash inflows.

    Thoughts exchanged is knowledge gained.

  • The situation you are facing is due to financial irregularity of the company and on account of this reason, you legal payment is being denied. However, you could have noticed the misdeed of the company when you were not provided the basic things such as appoint letter of the company, company Id etc and as such you cannot drag the company in a legal battle without these essential formalities.
    Since you have indicated the situation of the financial mess of the company and apart from it, you are no more employee of the said company, the only feasable solution lies in reminding them of your dues time to time and may be such approach will work ultimately. You may have a talk with the CEO of the company explaining your financial situation.

  • Frankly speaking, there is no evidence to prove that you had been an employee of the organisation. So, I don't think that you can take any legal recourse. You can regularly visit the organisation and put direct or indirect pressure on the owner. In such situation, I also recommend taking political help. You may arrange to give a call to the owner of the company from your local MP, MLA or municipal counselor. Create different types of problem for the organisation. I hope you would be able to get your dues, if not at a time, but in installments.

    This bitter lesson must be properly learnt. You should not join any company in future without having received offer of appointment with detailed terms & conditions.

    Come on, have a fight. Don't shoot and scoot.

  • This is because the company is in financial difficulties. Generally, many companies which are not doing well do these things. So we should be careful while joining itself. Anyhow the best option now is to maintain good relations with the company, talking to them in between sometimes and going and talking to them. Don't ask always about your salary only. Ask them about the company position and other things you can just put a ward about your problems and need of the money for you. They will give but they never deny. The only question is the time. You have to wait.

    always confident

  • My suggestions are a little different. Getting your dues back now is like a mental game of chess.Psychology and how aggressive you are would matter too.
    Any promises made related to finance and shares with not hold water until there are in black and white. So,
    first try to
    - collect all the data related to the phone calls that you have had with the higher ups from the time of the interview to date
    -collect all data you have had exchanged with clients on behalf of the firm, at least the clients would be
    verifiable with dates and details of your work.
    - you have had some payments given, try and retain all the transaction details of the same, cheques, bank
    transfer etc.
    - If you have signed a register of attendance, punched in a card or filled a leaveform in the office please get hold of copies of those
    - Try and speak to some of the administration staff confidentially and see if any TDS or PF has been deducted
    for you in your name or in a dummy name. Also check whether you salary has been entered in the balance
    books without actually being taken out or given to you.
    - every company should generate a salary slip by the end of the first month of the employee joining the firm, If you are in a VP designation, then I'm sure something doesn't fit it. Try to dig this bit of information out delicately

    Once you have this, send the details via mail and registered post to the CEO and set up a meeting. If you
    can get some external support, employees who are in similar situation or the local social groups who can
    settle this issue with discussions. Be persistent in this approach.
    In the meanwhile try to continue working for them so that you can get access to the details you want and if
    the company turns around, you can always request for your dues to be paid back.

    If this fails, then you can apporach the Labour commissioner of the ward or circle who can help to settle this
    issue ( this most often works).
    The next step would be to appproach the Labour Court for an application filing under Industrial Disputes Act.
    You can also report your company to the Registrar of companies for fraudulent activities related to non payment of dues.
    If the amount owed to you is huge, you can serve a notice via a good lawyer in the names of the CEO and CFO of the company in the civil court or as a last resort in the criminal court against the company.
    If there are many more in your state with dues pending, then form a group and approach the labour commissioner or the local media and newspapers to highlight your issue.No company would want bad publicity.

  • Lack of documentary support is the main weakness of your case. Still you can collect some emails or record the conversation with them in your mobile phone and all these may help you when you approach the authorities like labour commissioner or department of company affairs.

    Anyway you can send a written application to them with details of your pending claims and send it by regd post and keep the receipt and copy of the letter for reference. In this way you can slowly start creating a file containing all these documents and send regular reminders. If company does not reply it, then it shows that they are escaping from the responsibility. This itself is a proof of your dues with them.

    Keep dialogues with them on phone or in person continuously. They may agree to pay a part of the dues and in this way you can at least get something from them time to time.

    Knowledge is power.

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