• Company withholding payment indefinitely

I am employed in my current company for more than two years. Since more than a year, my salary payments have been irregular and delayed. Delay in salaries have been as much as 20-25 days multiple number of times. 
Last year I was given a raise in payment of ?10,000 per month with effect from April 2014. However, this revised payment was given to me only from September 2014 along with a letter that stated that I will be given the ?60,000 difference from April 2014 to August 2014 when the company has sufficient funds. I have still not received the money and my emails to the company management have been repeatedly been ignored.

Is it possible for me to get justice in such a situation?
Asked 8 years ago in Labour

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2 Answers

A. It can be presumed that company not running properly because of this severe financial crunch.

B. As per Payment of Wages Act,1936 employer have to pay wages within seven days (In case of strength is less than 1000 employees)counted from the last day of wage period for which wages are payable.If strength of employees is more than 1000 than time limit for payment is within 10th day from the last day of wage period in respect of whom wages are payable.

C. The employer must pay a reasonable interest if a payment, due to the employee, is made late, the Bombay High Court has held. Whether the service contract of the employee provides for payment of interest is immaterial.You are entitled to get 8% interest from the due date of payment of arrears.

D. Issue a legal notice to Reporting Manager and HR team by attaching earlier mail conversation. Thereafter, if no response, you can take legal action by approaching court And you are eligible to get 8% interest over the arrears salary as confirmed earlier point.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

A. How did they deduct the TDS towards your salary? Is there any remarks or mentioned in the Salary Certificate? In my opinion, your salary is 10,000/- permonth hence it would not attract TDS as per the Section 192 of the Indian Income Tax because Where the total income does not exceed Rs. 2,50,000/- TDS is NILL. Plz contact tax consultant with respect to the same. However, eventhough your tax deducted as per the income tax rules that the company not paying regularly they are liable to face all the legal consequences from the Income tax department by recieving notice with respect to the same.

B. If TDS is deducted or not deducted, employer must issue a form no. 16 and in case no TDS, NIL tds form no16 shall be issued. You would better issue a legal notice to your employer with respect to the same.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

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