Source:
https://blog.ipleaders.in/can-employee-sue-his her-employer-penal-provisions-faced-employer/
What are the instances under which an
employee can sue his/her employer?
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 will you do if your
employer doesn’t pay you gratuity?
According to section 8 of the
“Payment of Gratuity Act, 1972, in case the employer doesn’t pay the
gratuity within the prescribed time to his employee (or nominee), the aggrieved
employee can apply for redressal to the controlling authority. The controlling
authority after investigation will issue a certificate for that amount to the
Collector, who shall recover the same, together with compound interest at such
rate specified by the Central Government. In case of delayed remittances of
contributions, administrative / inspection charges by an employer, he has to
pay both interest and damages for the period of delay.
According to section 11 of
the “Payment of Gratuity Act, 1972, where the amount of gratuity has not been
paid, or recovered within 6 months from the expiry of the prescribed time, the
appropriate Government shall authorise the controlling authority to make a
complaint against the employer, whereupon the controlling authority shall,
within 15 days from the date of such authorisation, make such compliant to a
magistrate having jurisdiction to try the offence.
According to section 9 of the
“Payment of Gratuity Act, 1972, if the employer fails to pay the gratuity, he
shall be punishable with imprisonment for a term which shall not be less than 6
months but which may extend to 2 years, unless the court trying the offence for
reasons to be recorded by it in writing, is of the opinion that lesser term of
imprisonment or imposition of a fine would meet the ends of justice.
Here “Controlling Authority”
means an authority appointed by the appropriate Government.
In case of rival claimants to
gratuity under the Payment of Gratuity Ac, civil court has jurisdiction to go
into disputed matter (Asha Devi Jauhar vs. Sharda Dcvi 197g rr LLI 345)
Merely stating that the
employees went on an illegal strike and thereby caused a heavy loss to the
company is not a ground for denying gratuity (Refer case law: Bombay Gas Public
Ltd. Co. vs Papa Akbar And Another on 18 September, 1989)
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Dear friends,
In light of the above-published report, we, the resigning ex-employees can sue L.I.C of India for non-payment of our wage-revision arrears and non-payment of difference in retirement benefits.
Let's take collective action by filing a Class-suit with the Labor Commissioner! If any group of resigning ex-employees has already taken this step, let me know about it. I'll be thankful for the information.
Priya
