Professional Documents
Culture Documents
There are many instances wherein an employee of the company can sue his/ her
employer. Let us see a few of them:
What actions can you take if your employer does not pay salaries or
fails to deposit TDS or PF?
For unpaid salary, you can approach the Labour Commissioner, who will further
hand over the matter to the court, in case Labour Commissioner is not able to
handle the matter. The employee can make an application to the Labour Court
under Section 33 (C) of The Industrial Disputes x Act, 1947. (Refer Case
law: Sant Raj & Anr vs O.P. Singla & Anr on 9 April, 1985)
The definition of workman under the Industrial Disputes Act includes a part time
employee (Case law: Yashwant Singh Yadav vs State Of Rajasthan And Ors. on 12
April, 1989)
Also, such an application should be made within one year from when the money
becomes due from the company.All other benefits such as Provident Funds under
Employees Provident Funds and Miscellaneous Provisions Act, 1952,
capable of being computed in terms of money, shall also be included in the
amount to be recovered. An employer who contravenes, or makes default in
complying with the provisions of this Act, shall be punishable with imprisonment
for a term which may extend to 3 years but which shall not be less than 1 year
and a fine of ten thousand rupees in case of default in payment of the
employees wages which shall not be less than 6 months and a fine of five
thousand rupees, in any other case.
If you are an employee above the executive level or a manager and above, you
can also file a case against the Company in the Civil Court.
In case of fraudulent practices by the company under section 447 of Companies
Act, 2013, you can always approach Registrar of Companies and intimate them
of the fraudulent activities of the company.
If for a period of one day in a year, 20 or more persons were employed in the
establishment that will be sufficient to attract the provisions of the Act (Case
Law: Ramanujam Press Represented By ... vs The Regional Provident Fund ... on
19 June, 1969)
As the power of regional PF commissioner to impose damages is a quasi-judicial
function, an order under section 14(B) must be a speaking order containing the
reasons in support of it (Case law: Organo Chemical Industries & Anr vs Union Of
India & Ors on 23 July, 1979)
What should a women employee do if her employer doesnt pay for her
leaves she is entitled to during pregnancy or she is dismissed from her
job without genuine reason? The Maternity Benefit Act, 1961, comes
into picture!
In case the payments are not been made by the employer to the woman
employee, she can make a compliant to the Inspector. The Inspector may make
an inquiry on the receipt on the complaint and if satisfied- may pass such orders
as are just and proper. If the employee is aggrieved by the decision of the
Inspector, she may appeal to the prescribed authority. However, the decision of
the prescribed authority shall be final.
As per section 21 of The Maternity Benefit Act, 1961, If any employer fails to
pay any amount of maternity benefit to a woman entitled under this Act or
discharges or dismisses such woman during or on account of her absence from
work in accordance with the provisions of this Act, he shall be punishable with
imprisonment which shall not be less than three months but which may extend
to one year and with fine which shall not be less than two thousand rupees but
which may extend to five thousand rupees.
There is nothing in the Maternity Benefit Act which entitles only regular women
employees to benefit of maternity leave. Those engaged on casual basis or
muster roll are also entitled. (Refer Case law: Municipal Corporation Of Delhi vs
Female Workers (Muster Roll) And ... on 8 March, 2000)
The computation of maternity benefit in case of female worker engaged on a
daily wage basis has to be made for all the days including Sundays and rest days
which may be wage less holidays (Refer case law: B. Shah vs Presiding Officer,
Labour Court, ... on 12 October, 1977)
For entitlement to compensation under the Act, the first condition is that the
workman must suffer from a personal injury and that must be caused by an
accident, and the second condition is that the accident must arise out of and in
the course of employment (Refer case law: Laxmibai Atmaram vs Chairman And
Trustees, Bombay ... on 15 July, 1953) (Bhagwanji Murubhai Sodha And Ors. vs
Hindustan Tiles And Cement ... on 10 December, 1974)
Chapter IV of The Factories Act, 1948 provides for safety standards for the
workers in the factory. Any worker who is engaged in dangerous operations as
per section 87 of the Factories Act, 1948, resulting in serious bodily injury, the
contravention of any of such provisions shall make the occupier and the
manager of the factory liable to a fine which shall not be less than Rs. 25,000 in
case of an accident causing death or serious bodily injury and a fine of Rs. 5,000
in case of accident causing serious bodily injury.
When the owner of the premises leases its premises to different occupiers for
use as separate factories, the owner of the premises shall be responsible for the
provision and maintenance of common facilities and services as provided under
chapter III (Cleanliness) and chapter IV (Safety). If any owner contravenes any of
the provisions of this act, he shall be liable for a general penalty under section
92 of the factories act, 1948. During such case, the occupier and manager of the
factory shall each be guilty of an offence and punishable with imprisonment for a
term which may extend to two years or with fine which may extend to one lakh
rupees or with both, and if the contravention is continued after conviction, with a
further fine which may extend to one thousand rupees for each day on which the
contravention is so continued.
All workmen who quit their employment would be entitled not only to
accumulated leave from the previous calendar years but also to leave
attributable to the period of work during the calendar year in which they quit
their employment (Refer case law: Suhrid Geigy Ltd., Baroda vs State Of Gujarat
And Anr. on 20 April, 1978)
The claim for overtime wages under Factories Act is maintainable only for work
done beyond 9 hours in a day or 48 hours in a week and not otherwise (Case
law: Clothing Factory, National ... vs Union Of India By Its Secretary, ... on 20
April, 1990)
If the lady stenographers were paid less than the male stenographers for the
same work or work of a similar nature, then it would amount to discrimination on
the ground of sex (Referring case law: Mackinnon Mackenzie & Co. Ltd vs Audrey
D'Costa & Anr on 26 March, 1987)
The principle of equal pay for equal work id not applicable to professional
services (Refer Case law: Dr. C. Girijambal vs Govt. Of Andhra Pradesh on 11
February, 1981)
What if the wages are not paid by the Employer to his Employee?
If the employer fails to pay such amount to the employee, or pays less than the
amount fixed as per the above provision (section 13) or contravenes any of the
rules of this section,
He shall be punishable with imprisonment for a term which may extend to six
months, or with fine which may extend to five hundred rupees, or with both.
Payment of wages less than minimum wage on the ground of less performance
or output is illegal (Case law: Bandhua Mukti Morcha vs Union Of India & Others
on 16 December, 1983)
Attendance bonus is the nature of an incentive. It is an additional payment made
to the workmen as a means of increasing production. It cannot be treated as part
of the minimum wage fixed under the Act (Refer case law: Manganese Ore (India)
Ltd vs Chandi Lal Saha And Ors on 1 November, 1990)
If any employer fails to notify to the employment exchanges prescribed for the
purpose any vacancy in contravention of sub- section (1) or sub- section (2) of
section 4, he shall be punishable for the first offence with fine which may extend
to five hundred rupees and for every subsequent offence with fine which may
extend to one thousand rupees.
What can you do if your employer doesnt pay you bonus you are
entitled to?
The Payment of Bonus Act, 1965 will help you recover the bonus from your
employer.
According to section 21 of The Payment of Bonus Act, 1965, where any
money is due to an employee by way of bonus from his employer under a
settlement or an award or agreement, the employee himself or any other person
authorized by him in writing in this behalf, or in the case of the death of the
employee, his assignee or heirs may make an application to the appropriate
Government or such authority as the appropriate Government may specify in
this behalf, is satisfied that any money is so due, it shall issue a certificate for
that amount to the Collector who shall proceed to recover the same in the same
manner as an arrears of land revenue.
Every such application shall be made within one year from the date on which the
money became due to the employee from the employer.
In case there is a delay in filing an application with the appropriate Authority
beyond 1 year, the case will be entertained, if the appropriate Government is
satisfied that the applicant had sufficient cause for not making the application
within the said period.
Right to forfeit bonus has to be confined only to the accounting year in which act
of misconduct was committed and not earlier or succeeding accounting years.
(Himalaya Drug Co. Makali vs Ii Additional Labour Court, ... on 3 January, 1986)
For the purpose of this Act, employee means any person (other than an
apprentice) employed on a salary or wage not exceeding ten thousand
rupees per mensem (month) in any industry to do any skilled or unskilled
manual, supervisory, managerial, administrative, technical or clerical work for
hire or reward, whether the terms of employment be express or implied. (The
amount of Rs. 10,000 has been amended to Rs. 21,000 in the Payment of Bonus
(Amendment) Act, 2015)
YES! Let us see what section 15 of The Payment of Wages Act, 1936 says:
The appropriate Government may be notification in the Official Gazette appoint
an appropriate Officer of Central/ State Government, a Presiding Officer of any
Labour Court of Industrial Tribunal etc as the Authority to hear and decide the
claims arising out of deductions from the wages or delay in the payment of
wages, including all matters incidental to such claims.
Where any deduction has been made from the wages of an employed person, or
any payment of wages has been delayed, such person himself, or any legal
practitioner or any official of a registered trade union authorized in writing to act
on his behalf, or any Inspector under this Act, or any other person acting with
the permission of the authority appointed may apply to such authority for the
claims.
Every such application shall be presented within 12 months from the date on
which the deduction from the wages was made or from the date on which the
payment of the wages was due to be made, as the case may be. The delay
beyond 12 months shall be entertained if the applicant satisfies the authority
that he had sufficient cause for not making the application within such period.
After hearing the claims of the applicant and after such further enquiry, if
necessary, direct the refund to the employed person of the amount deducted, or
the payment of the delayed wages, together with the payment of such
compensation as the authority may think fit, not exceeding ten times the
amount deducted in the former case and not exceeding three thousand rupees
but not less than one thousand five hundred rupees in the latter, and even if the
amount deducted or the delayed wages are paid before the disposal of the
application, direct the payment of such compensation, as the authority may
think fit, not exceeding two thousand rupees.
The authority constituted under section 15 of The Payment of Wages Act is
empowered to investigate into the reasons for the absence and under what
circumstances an employee was absent from attending to his duty, and wages
for absence from duty cannot be deducted if the workmen were prevented from
attending to their duties by organizers of bandh. (Kothri (Madras) Ltd. vs Second
Additional ... on 5 June, 1989)
For the purpose of this Act, employed person includes the legal representative
of a deceased employed person.
The authority under the Payment of wages Act has no jurisdiction to interfere
with the orders to stop increments passed under disciplinary proceedings
(General Manager, Punjab ... vs Swaran Singh, Conductor on 27 November,
2000)
Why are we talking about an Insurance Corporation under this subject? Because
as per The Employees State Insurance Act, 1948, an insurance
Corporation falls under the definition of Employee. (Referring case law
Hyderabad Asbestos Cement ... vs E.S.I. Court And Anr. on 5 December, 1975)
The definition is inclusive one. The meaning will be clearer through this definition
(Section 2(9) of The Employees' State Insurance Act, 1948)
Where the Corporation considers that the incidence of sickness among insured
persons is excessive by reasons of:
Negligence of the owner or occupier of the factory or establishment to observe
any health regulations due to sanitary working conditions.
The Corporation may send to the owner or occupier of the factory or
establishment or to the owner of the tenement or lodgings, as the case may be,
a claim for the payment of the amount of the extra expenditure incurred by the
Corporation as sickness benefit; and if the claim is not settled by agreement, the
Corporation may refer the matter, with a statement in support of its claim, to the
appropriate Government.
If the appropriate Government is of opinion that it is prima facie case for inquiry
is disclosed, it may appoint a competent person or persons to hold an inquiry
into the matter.
If upon such inquiry it is proved to the satisfaction of the person or persons
holding the inquiry that the excess in incidence of sickness among the insured
persons is due to the default or neglect of the owner or occupier of the factory or
establishment or the owner of the tenements or lodgings, as the case may be,
the said person or persons shall determine the amount of the extra expenditure
incurred as sickness benefit, and the person or persons by whom the whole or
any part of such amount shall be paid to the Corporation.
The employer can be asked to pay contribution towards ESIC even after closure
of the business and cannot escape liability on the ground that he had not
deducted employees contribution from the wages. (Refer Case law: Employees
State Insurance ... vs Hotel Kalpaka International on 15 January, 1993)
Under The Mines Act, 1952, an Inspector is appointed which includes District
Magistrate for the purpose of exercising any power or performing any duty which
is empowered by this Act to exercise or perform the duties. The Inspectors have
the power to write a notice to the owner of the mine if they sense any kind of
threatening or danger concerned with the mine and should remedify the same in
the prescribed time as specified in the notice according to section 22(8) of The
Mines Act, 1952.
If the Owner or Manager of the Owner of the Mine fails to take any action in spite
of the notice, the Chief Inspector can prohibit the employment of the people if
the mine is not safe enough according to him for the people working in the mine.
If the appointed Inspector finds that the persons employed in the mine have
caused injury due to the negligence of the Owner, he shall be punishable with
imprisonment which may extend to one month, or with fine which may extend to
five hundred rupees, or with both.
The Owner of a mine shall be prosecuted and punished under this Act for any
offence for which the owner of a mine is punishable.
However, no prosecution shall be instituted against any owner of mine under this
Act except at the instance of the Chief Inspector or of the district magistrate or
of an Inspector authorized in this behalf by general or special order in writing by
the Chief Inspector:
Provided that in respect of an offence committed in the course of technical
direction and management of a mine, the district magistrate shall not
institute any prosecution against an owner, agent or manager without the
previous approval of the Chief Inspector.
This means that the worker will have to approach the Chief Inspector/ District
Magistrate/ Inspector if s/he is aggrieved by the orders/ decisions of the Owner
or the agent or the manager of the owner of the mine.
The definition of mine is very wide. It includes every kind of operation. Mine
includes a quarry. However, mine does not include office of a mine even
though situated at the surface of the mine itself (Refer case law: M/S. Serajuddin
& Co vs Their Workmen on 19 March, 1962)
Section 28L of Chapter IV of The Trade Unions Act, 1926 provides for
protection of action to the workers of trade union. It says that no suit,
prosecution or other legal proceeding shall lie against any worker for anything
which is in good faith done or purported to be done under this Act. There is
nothing in the Trade Unions Act or the rules made thereunder which confers
absolute right to be admitted as a member of a particular trade union. (Refer
case law: Mohd. Ibrahim v. Asansol Iron and Steel Workmen Union 1954 I LLJ 1)
Further, The Industrial Disputes Act, 1947, provides for settlement of dispute
between the parties through collective bargaining, arbitration and conciliation
and lastly through labour court.
Firstly, the employers will try to resolve the dispute by collective bargaining that
is the dispute is resolved amicably by agreement rather than coercion. If both
the parties fail, then union may go on strike. Thereafter, arbitrator is appointed
who will try to settle the dispute without court intervention. If the labour dispute
cannot be settled via arbitration, then the workers can refer the case by a
written agreement to a labour court, industrial tribunal or national tribunal for
adjudication or compulsory arbitration. A final ruling on the industrial dispute
must be made within six months from the commencement of the inquiry. A copy
of the arbitration agreement signed by all parties is then forwarded to the
appropriate government office and conciliation officer pursuant to which the
government must publish the ruling in the Official Gazette within one month
from receipt of the copy. The decision of the Government shall be final and
binding on the parties.
Conclusion:
From the above discussion we understand that our law is for all be it a
subordinate or his boss. There is a vast opportunity for the aggrieved to knock
the doors of the court of law and take the help of the same to come out of the
dispute/ disagreement. But mere dismissal of a complaint does not make the
employer liable for the acts. The employee/ aggrieved person should provide
documentary proof to the court of law in order to prove the bad faith of his/ her
employer.