Dear Sir,
You need not worry. Get issue a strong reply legal notice and if she ventures to file any suit for recovery of that amount you have every liberty to resist the same on the ground of not reaching the given target.
Employee claims salary from company despite poor attendance and performance.
We are small diagnostic company in Bangalore. We hired a woman employee for sales job and given a target of 1.5 lakhs business every month. However, employee did not perform up to the mark. We paid her salary for 6 months and in the mean time we also issued a warning that she is not performing sales properly. After 3 months based on poor performance we have given her termination letter with immediate effect and we did not pay her salary for the last month as our company had undergone loss. Noe employee sent us a legal notice claiming her pending salary and her travel expenses. How do we proceed further on this? Since our company doesn't have profitable business we are not in a position to pay salary. Kindly help us on this.
Asked 6 years ago in Labour
14 Answers
What are terms of appointment letter .?
in event of termination of employee you hav e to pay her salary dues as per the appointment letter
in any event you have to pay her last month salary
See in case she has worked for the company as she was employee and she was terminated after said month then till date of termination salary is payable it cannot be avoidable. You will increase legal expenses only by.contesting this.
Dear Client,
If she has served for full month even without achieving target, salary shall be paid as the payment of salary was not subject to target chase. Well, you can reply to the legal noitce that due your poor performance and failure to Chase target, still you were over paid by the company which shall be refundable.
You can send your reply on that basis from your lawyer, If she goes to court then you can prove the same in court
The employee is supposed to send us daily work report as per our company policy. However, she did not send daily reports instead sends reports only 3 or 4 times in a month. Therefore we consider that the employee did not work with our clients and hence negligible business for us. Daily reports is the only basis for us to consider that the our station employee has worked for us. Since we did not receive regular reports, we in fact sent us several email warnings but still there was no daily updates. Hence we had to terminate without further notice. We actually overpaid her salary for 6 months for the negligible sale business she brought for our company. We are in loss because of the poor attendance and performance by the employee. Our audit statements show clear loss of our company and hence we cant afford to compensate an employee who just did not work for us. Thanks and any good feedback and support is appreciated.
Asked 6 years ago
You have not mentioned as to what was the clause in appointment letter regarding termination of employment
engage a local lawyer and reply to the legal notice
Loss of the company and salary of the employees though have connection in corporate but has no meaning in law because unless and untill there exists employer and employee relation she is entitled to the salary otherwise you have to prove that she is not entitled. If she was not giving business up to the mark what action you have taken nothing so firstly issue her a show cause notice after demanding her the Daily Reports for the period under dispute and tally the same with the customers if something found wrong issue her SCN immediately and clearly mention in the notice that she is not entitled for the salary for the period as her statement or report has been found wrong and take further action of termination if her reply not found satisfactory.This action if taken will defend you before the court of law that you have followed the principles of natural justice.
Her failure to update daily report, ascertainable enough to inform her absence from work.
Don`t you understand English ? check what i write in follow up.
All the above facts are matter if trial in court and court will consider the same during trial
See we understand your concern but since her name was there in company employee so she is entitled to pay as in if she goes to court you have to contest then also and it shall increase your expenses only.
Sir,
thank you for the long reponse you wrote, maybe everyone has written positively in your favor from there wisdom but i have reasoned by response from law point of view.
If according to you, she is not entitled to any salary and no payment id due to her, you must immediately respond back to her legal notice through a lawyer. Deny all the false and frivolous points raised by her in her notice, in your response.
If as per appointment letter it is mentioned then employer is bound to pay salary.
You cannot hold your employee for the loses your company suffered.
She is an employee, that is all.
If you have given her a target for the business and she has not achieved it, hence you have terminated her services, whereas the fact is that you are liable to give her the salary for the period she worked with you or at least till the time she had been an employee in your company.
You cannot deny her employment since yo have given her a termination letter, which means that you have accepted her to be an employee in your company.
Hence you cannot escape the liability of paying her pending salary for the reasons that your company has suffered loses.
She can very well enforce the demand made through court of law, hence to avoid more complications, you may settle her claim accordingly to avoid future litigation expenses .as well.
Your statements and the reasons for not willing to pay her the salary for the period she was employed under you may not be acceptable ion court of law.
The court will see only the employer and employee relationship till the time she was terminated from the service.
The court will state that she is not responsible for yor company's profit and loss in the business.
Hence you may take a wise decision if you want to avoid future legal hassles in this regard.