Pending Dues from previous company Pending Dues from previous company

1 month ago

In May 2017, I joined a company in Lucknow. At the time of joining, I did not receive any offer letter or did not sign any contract with the company. After serving 6.5yrs with the company, I gave a resignation without the serving notice period on 14th Feb 2024. Now, 1.5months after my resignation, the company did not clear all my dues. Please suggest what options I have to claim my dues (is this necessary for an employee to serve notice period if a person has not signed any document given by the company)

Anik

Responded 2 weeks ago

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A.Dear Client,

It's unusual to serve a company for over six years without an offer or appointment letter. If the company withholds your Full and Final (F & F) Settlement dues upon resignation, it constitutes unfair labor practices under the Industrial Dispute Act, 1947. Additionally, employees are entitled to gratuity under the Payment of Gratuity Act, 1972, after five years of continuous service.

In the absence of an appointment letter, other documents like salary slips, job cards, or EPF/ESIC records can substantiate your claim and employment relationship. If you're categorized as a workman under the Industrial Dispute Act, reach out to the office of the State Labour Commissioner to file a complaint against the employer for grievance redressal. Simultaneously, file an application under Section 33C(2) of the Industrial Dispute Act before the relevant Labor Court to claim dues.

However, if you held a managerial or administrative position, you must file a civil suit before the Civil Court for the desired relief.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 1 month ago

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A.Dear Client,
It appears strange and ridiculous that without an offer/appointment letter, you served a company for more than six years and when you tendered your resignation, the company withheld your F & F Settlement dues which amount to unfair labour practices as defined under Sec.2(ra) and specified in Schedule V of the Industrial Dispute Act, 1947. Apart from F & F Settlement dues, an employee is eligible for payment of gratuity under the Payment of Gratuity Act, 1972, once he served a company or establishment for a continuous period of five years or more. So, in the given scenario, in the absence of any appointment letter, if you possess any other documents like salary slips, or job cards or EPF/ESIC records etc., that prove your claim and the relationship with the company, and if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then reach out to the office of the State Labour Commissioner concerned for filing a complaint against the employer/company for redressal of your grievance and simultaneously file an application u/s.33C(2) of the I D Act before the concerned Labour Court claiming dues from your employer receivable to an employee on resignation. But, if you were holding the position of Manager or Administrator in the Company, you have to file a civil suit before the Civil Court for desired relief in the matter. Feel free to contact our legal team of expert professionals, if required, to navigate the issue in the right way.
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Vidhi Samaadhaan Vidhi Samaadhaan

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