Compensation for delay in final settlement
17-May-2023 (In Labour & Service Law)
I was employed by a private sector company and was terminated by them on 2nd March 2017. They offered me an additional month salary while separation. My final settlement was to be paid by 17th April 2017. However the company delayed the additional months salary by another 30 days. When checked with the payroll team of my employer, they said the delay happened because they "erroneously overlooked" the tracker. I asked them for compensation for the delayed time by paying me 30 days payment as per Labour Law in India. The company stated that they don't follow such rules. The employee must adjust to such "minor errors".
My question is : Am I entitled to compensation for this delay in payments? What is the percentage of payments an employee is entitled to if the employer delays?
If you sue a former employer for wrongful termination, you are asking the jury to award you money, called damages. Monetary damages are usually the only remedy available in a wrongful termination lawsuit. . The purpose of monetary damages is to compensate you for what you lost because of the employer's actions. You will have to prove not only that you suffered losses because of the employer's wrongful actions, but also the amount of those losses.
Your employment with a private company is governed by the letter of appointment issued to your by the company and comes under the ambit of Contract Act.
Did you sign any contract of employment before joining the company?
If so, what were the terms of termination of employment in the contract?
Any employment with a private company is managed by the letter of appointment issued by the company and comes under the ambit of the Indian Contract Act.
The legal recourse starts by sending a legal notice to the company for the illegal termination and to recover any dues as per the terms of your employment with the company. In case of no reply to the legal notice one may choose to file a civil suit for recovery of legitimate dues like unpaid salary, salary in lieu of notice period not allowed to serve, PF, gratuity and so on.
However, one must keep in mind that the court cannot grant reinstatement as private employment is covered under the contract act which means the maximum available remedy is only to recover the monetary losses one suffered due to the illegal termination.
Did you enter into an employment contract with your employer? If yes, then do share the details because it would contain a clause regarding resignation and payment of salary in lieu of notice period. If not, then you should immediately send a legal notice to your employer and demand payment of your dues and if your company then fails to pay then you can approach the appropriate labour court for redressal.
Your employment with a private company is governed by the letter of appointment issued to your by the company and comes under the ambit of Contract Act.
Did you sign any contract of employment before joining the company?
If so, what were the terms of termination of employment in the contract?
Any employment with a private company is managed by the letter of appointment issued by the company and comes under the ambit of the Indian Contract Act.
The legal recourse starts by sending a legal notice to the company for the illegal termination and to recover any dues as per the terms of your employment with the company. In case of no reply to the legal notice one may choose to file a civil suit for recovery of legitimate dues like unpaid salary, salary in lieu of notice period not allowed to serve, PF, gratuity and so on.
However, one must keep in mind that the court cannot grant reinstatement as private employment is covered under the contract act which means the maximum available remedy is only to recover the monetary losses one suffered due to the illegal termination.
Did you enter into an employment contract with your employer? If yes, then do share the details because it would contain a clause regarding resignation and payment of salary in lieu of notice period. If not, then you should immediately send a legal notice to your employer and demand payment of your dues and if your company then fails to pay then you can approach the appropriate labour court for redressal.
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
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