• Manager Salary Overdue - Civil Suit or CP in Labour Court

I quit about in August 2021. The mgmt shared a letter stating that they will disburse the salary in Oct 2022 along with my Gratuity. But they have not paid the salary and gratuity yet. Mgmt has stated they will not be able to pay the money as of now and are not committing a clear date. The salary dates back to 2020. The Final Settlement + Gratuity amounts to ~10L

I resigned from a Managerial role. My designation was Manager when I resigned.

So, I am unclear if I will qualify to file a Claim Petition under the Industrial Disputes act. Is it right to appeal to labor court or should I initiate a Civil Suit?

PS: The employer is a habitual offender, I hear that they have cleared unpaid salaries to more than 100 employees.
Asked 3 years ago in Labour

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7 Answers

file suit to recover your dues with interest 

 

2) since your  designation was manager you do not fall under definition of workmen 

Ajay Sethi
Advocate, Mumbai
99786 Answers
8145 Consultations

A person employed in managerial cadre cannot approach labour Court. An employee having  salary not more than 20000 rupees can not approach as of right the labour Court. 

Your remedy lies in Civil Court. File a suit for recover of salary with interest. Before filing the suit you need to issue a lawyers notice making demand of salary and arrears, you will get arrears of salary with interest  cost of suit  and lawyers fee. 

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

Generally mere nomenclature of designation of a job or the amount of salary is not a decisive factor determining whether the person employed on it is a 'workman' , 'supervisor' or 'manager'. On the other hand, it is the principal and predominant nature of duties actually performed by him as per the orders of the employer.

 

If this man is having the authority to approve leaves of his subordinates, initiate disciplinary action against the subordinates or appraise the performance of his subordinates, he should be called a manager. A manager by designation but does not have the above rights shall only be regarded as a workman, but does not include any person who is employed mainly in a managerial or administrative capacity.

The issue of someone is a workman or non- workman is to be decided , when contested, by the adjudicating authority on merits, under the Industrial Disputes Act/ Rules.

Therefore, to opine that the said so-called Manager can not knock the doors of the authorities under the said Act, is premature.

Whatever, you can issue a legal demand notice demanding your arrears of salary and payment of gratuity amount, let the management give a reply denying or complying with the demands made.

You can decide further course of legal action on the basis of the reply given by your employer. 

T Kalaiselvan
Advocate, Vellore
89988 Answers
2493 Consultations

Hello, 

  1. You have to file a civil suit for recovery of the gratuity and the salary arrears.
  2. It does not matter if he is a habitual offender, he cannot escape the liability.
  3. You need to send a legal notice to the employer demanding payment as a first step and if he fails to pay, you can file the Suit for recovery.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

You can approach labour court by filing suit 

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

- Since, you have performed your service as a Manager then you cannot approach under the Industrial Dispute Act 

- Hence, send al legal notice to the said employer , and if no response then file a civil recovery suit before the court.

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You need to move the labour court in consultation with a competent lawyer. Make sure that you possess all relevant documentary evidence to make out a strong case.

Swaminathan Neelakantan
Advocate, Coimbatore
3070 Answers
20 Consultations

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