Employer not paying wages after termination or resignation - Know your rights!

Employer not paying wages after termination or resignation - Know your rights.

The Code on Wages Act’s Section 43 says “Every employer shall pay all amounts required to be paid under this Code to every employee employed by him:

Provided that where such employer fails to make such payment in accordance with this Code, then, the company or firm or association or any other person who is the proprietor of the establishment, in which the employee is employed, shall be responsible for such payment.”

Under Section 45, The Appropriate Authority (Labour Department of State) is authorized to hear and determine the claims which arise under the provisions of the Code. The authority, while deciding the claim under that sub-section, may order, having regard to the circumstances under which the claim arises, the payment of compensation in addition to the claim determined, which may extend to ten times of the claim determined and endeavor shall be made by the authority to decide the claim within a period of three months.

If an employer fails to pay the claim determined and compensation ordered to be paid, the authority shall issue a certificate of recovery to the Collector or District Magistrate of the district where the establishment is located who shall recover the same as arrears of land revenue and remit the same to the authority for payment to the concerned employee.

Who Can Apply For Remedy?

Any application before the authority for claim may be filed by,—

(a) The employee concerned; or

(b) Any Trade Union registered under the Trade Unions Act, 1926 of which the employee is a member;

(c) The Facilitator.

Subject to such rules as may be made, a single application may be filed under this section on behalf or in respect of any number of employees employed in an establishment. The Time Limit is 3 Years from the date of claim.

Time Limit For Payment of Wages:

(1) The employer shall pay or cause to be paid wages to the employees, engaged on—

(i) Daily basis, at the end of the shift;

(ii) Weekly basis, on the last working day of the week, that is to say, before the weekly holiday;

(iii) Fortnightly basis, before the end of the second day after the end of the fortnight;

(iv) Monthly basis, before the expiry of the seventh day of the succeeding month.

(2) Where an employee has been—

(i) Removed or dismissed from service; or

(ii) Retrenched or has resigned from service, or became unemployed due to closure of the establishment,

The wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.

In Case of Non Payment of Gratuity:

Gratuity shall be payable to an employee on the termination of his employment after he has rendered continuous service for not less than five years-

(a) On his superannuation, or

(b) On his retirement or registration, or

(c) On his death or disablement due to accident or disease;

Under Section 9 of Payment of Gratuity Act, 1972:-

If an employer-

(i) Refuses to accept a nomination or to entertain an application for payment of gratuity, or

(ii) Issues a notice either specifying an amount of gratuity which is considered by the applicant less than what is payable or rejecting eligibility to payment of gratuity, or

(iii) Having received an application for payment of gratuity, fails to issue notice within fifteen days;

The claimant employee, nominee, or legal heir, as the case may be, may within ninety days of the occurrence of the cause for the application, apply to the controlling authority for issuing a direction under sub-section (4)of section 7 with as many extra copies as are the opposite party. It is provided that Controlling Authority may accept any application on sufficient cause being shown by the applicant after the expiry of the period of ninety days. All Assistant Labour Commissioners (Central) have been appointed as Controlling Authorities and all the Regional Labour Commissioners (Central) as Appellate Authorities.

If the amount of gratuity payable is not paid by the employer, within the prescribed time, to the person entitled thereto, the controlling authority shall, on an application made to it in this behalf by the aggrieved person, issue a certificate for that amount to the Collector, who shall recover the same, together with compound interest thereon at the rate of nine per cent per annum, from the date of expiry of the prescribed time, as arrears of land revenue and pay the same to the person entitled thereto.