• Employer not paying salary and settlement

I've was given employment in a start-up company as CDO, with a package of Rs 160000/ per month for the first three months (probationary) with an additional assured variable pay of Rs 1200000 per annum.

Started my career on 31st July 2015 and I've was forced to resign on 5th Oct 2015 in connection with new resource hiring. During the period, I had not been paid Aug & Sep salaries, when repeatedly followed-up I was paid only Rs 31000 as part payment and agreed to pay the balance salaries on 5th Oct 2015. When repeatedly asked for salary (Aug and Sep 2015 salaries) on 5th oct 2015, he raised unnecessary discussions in relation to new resource hiring and asked me to "walk-off / leave the job now".

The conflict argument with MD was, he was pushing me to hire new resources when in actual he had not paid two months salary for me and all existing employees, the office rent was not paid and the land owner had asked to vacate the office for which even my MD had agreed, the telephone bills were not paid and was suspended, etc. I had said to the MD, "Let us secure the working capital funds to manage the salaries and office expenses for 12 months and then we go for new hiring". But he didn't listen to me, he kept on forcing me to hire 3 or more resources immediately. Then I denied any new hiring and asked him to first clear all pending salaries to existing staff including me and secure the office space, then will initiate for new resource hiring. But he kept on arguing, and in-front of everyone he repeatedly asked me to "walk-off / leave the job now" after which I tendered the resignation.

So as per my understanding, appointment terms and company's act guidelines, plus I'm eligible for the two months salaries (Aug & Sep) for which I've worked, plus one month advance salary (notice period) as the company asked me to quit, plus pro rated variable pay as per the appointment terms.

But in-spite of repeatedly following, the MD is not even bothering to clear any of the salaries and settlements. Please guide me on the next steps and the approach I should take to recover my money.

Thanks,
Mahesh. C
Asked 8 years ago in Labour

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2 Answers

Before adverting any legal advice, the terms and conditions of your appointment in the Company needs to be looked into. Is it one month's notice from either side during the probation or after successful completion of probation?

It is fact that you yourself has tendered resignation during the probation period of three months. Whether it was forced one or not, this aspect needs to be proved with evidences at an appropriate time. However, it is advised that you must send legal notice to the company through some advocate highlighting therein all the legal issues and aspect and demanding your salary for the period of two months.

Rajinder Kumar
Advocate, New Delhi
98 Answers
6 Consultations

4.9 on 5.0

Its fine. You please serve legal notice through some Advocate to your ex-employer and ask for all the dues with in a reasonable stipulated time.

It is difficult to comment on the issue of one month's salary of notice period as it depends upon the contents of your resignation letter. Whether you mentioned anything about one month's notice or otherwise.

Rajinder Kumar
Advocate, New Delhi
98 Answers
6 Consultations

4.9 on 5.0

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