we make payment to a person on commission basis, but now we demand payment on salary basis, we have not made any agreement to that person. but that person demanded more payment for its work, otherwise he want to file complain against us in labor commissioner. So can anyone take legal action regarding labour law without any appointment letter ? and what happen in future in this case.
Asked 3 years ago in Labour from Ahmedabad, Gujarat
correction: "but now he demanded" instead of "but now we demanded"
Asked 3 years ago
if there is no appointment letter and in the absence of any agreement and as it was a work by commission for work done he can not approach the Labour Commission or file a complaint with Labour Commissioner.In otherwords you have no contractual obligation towards him once you have made payment of the commission as agreed upon.
1. Hope there is no mention any where in your records like payment voucher etc. that he is receiving payment against fixed salary plus commission,
2. You have not mentioned whether there is any agreement with him for selling against commission duly mentioning the commission percentage,
3. However, if there is no document evidencing that you have been paying him salary, he can not claim any employment with you against salary.
You pay commission. You have no agreement for salary. Then He has no case to claim as an employee but check your records to be sure that there is no mention of salary and commission, or payment of fixed amount every month or any letter/document /gate pas/ID etc.stating that he is an employee.
Advocate, New Delhi
he will not be able to make a claim if it is only on the basis of an oral agreement. Even if he has been appointed on commission basis and there is an agreement to that effect between the employer and him,he will not be able to claim anything other than the commission .
there is no question of suing the employer for salary unless the employer made an agreement in writing for the same.
As far as raising a dispute or a complaint by the person is concerned he is free to do the same. However it is a question of fact whether he is a workman employed by you or simply a commission agent and it can be gone through by the Labour court if an Industrial Dispute is raised. It will depend upon the evidence in the shape of payments, communications, instructions, supervisions, incentives etc. Therefore it will be bald statement that he can not do anything. Let him do whatever he wants to do and comeback for advice in further development if any.
Advocate, New Delhi