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Can I sue a "Pvt Ltd" company for not paying salary settlement amount?

I joined a HR consultancy company based in Maharashtra on 31 May 2022. They only provided me with offer letter and said that I will receive appointment letter after 60 days as they are making some changes in their current company policies.

Due to travel issues and red flags in the company, I decided to resign from the job after working for 18 days. When I asked about my salary settlement and relieving process, the HR and Team lead turned blind eye and told me that they wont pay me the salary for 18 days that I worked stating that they can't pay someone who hasn't worked till one month. I told them that I was ready to serve notice period. They declined by saying that I am not a good performer and they would rather have me leave immediately. They also mentioned that no "pvt ltd" company is entitled to pay for employees like me who left the job within a month and I don't even have appointment letter in hand which can act as a proof. I was bullied and belittled for speaking up.

We had a heated conversation and in the end the company's head verbally said that they will pay my salary in the next pay cycle.i.e in July. It's already been almost a month since I resigned but I have not received my salary even after multiple emails and calls.

Also note that the company has very high attrition rate and almost all the current employees in that organisation have worked there only for couple of months. During the period when I was working there, 4 new joinees left the job within 2 weeks due to work pressure and other reasons. None of them were given appointment letter or paid for their salary.

Is it really true that "pvt ltd" company can do something like this? What is your legal opinion?

Asked 3 years ago in Labour

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6 Answers

An employer cannot refuse to pay the salary that is due to the employee working under him for any reason.

The aggrieved employee can first issue a legal demand notice demanding his pending salary after which he can approach the labor court with an application to get his grievances redressed.

The company is wrong to say that the private company has governed by a different law.

All the companies in India are governed b y the Indian laws and no one is exempt from that.

Therefore you may proceed as suggested.

T Kalaiselvan

Advocate, Vellore

89977 Answers

2492 Consultations

Talk to Advocate T Kalaiselvan

- As per Specific Relief Act, if any employee quits before the notice period, the Employer can only recover the Notice pay, and the Company cannot force to serve the entire notice period.

- Further, the resignation decision is the employee’s decision, and the employer cannot sue for breach of contract, if the employee leaves without serving contractual notice.

- Further, no employer can refused to pay for the refund the amount of working period , and to return the original certificates or to issue relieving letter .If they are doing so, their act is illegal, unjustified and against the fundamental rights of the employee.

- Further, as you have resigned in the beginning , then it will considered as probation period , and notice period not applied on you.

- You can send a demand legal notice to the said Company for getting refund the amount of salary ,for which the company is under obligation to pay you , whether the company is a PVT or LTD company.

Mohammed Shahzad

Advocate, Delhi

15814 Answers

242 Consultations

Talk to Advocate Mohammed Shahzad

A private employer, P. Ltd. Company, Public Limited Company, State Government or Central Government are all liable for payment of wages to an employee who has worked for even one day. You need to approach private forum for enforcement of you right to receive your wages. If your salary is less than eighteen thousand rupees per month you can approach Labour Commissioner. You can file suit under section 33 c of industrial dispute act for recovery of money. The court will issue a certificate on being satisfied that the salary is due and the collector shall proceed to recover the same. If you are a manager or executive you can file a case against the company following the procedure described under order 37 of Civil Procedure Code known as summary procedure. This is the fastest way of getting your salary back. But in all cases it is necessary that you should issue of proper demand notice to the company.