Can we sue L.I.C of India for non-payment of our dues?

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?

By Ajay Thakur     March 15, 2017

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)
                   *******************************************************************************

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