Company not paying severance of Rs.50000, this is mentioned in contract. Company not paying severance of Rs.50000, this is mentioned in contract.

I was working with a leading EdTech company in India. They laid me off in June 2022. I was informed that I would receive severance pay for one month due to my unjust termination. They haven't paid me this and are making excuses till date. Will it be advisable to file a civil suit against this company? These terms are clearly laid out in the offer letter contract, so please let me know if chasing after this is worth it or not.

Abhimanyu Shandilya

Responded 2 months ago

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A.Dear Client
If that was already mentioned in the contract and they have also accepted the fact then you do have a good case against them. what you should do is send them a legal notice followed by a civil suit to recover the dues. In addition to the dues you should also seek compensation for the wrongful and unjust termination plus harassment.
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Kishan Dutt Kalaskar Retired Judge

Responded 2 months ago

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A.Dear Sir,

You may go to the office of labor commissioner.

Section 12 in The Industrial Disputes Act, 1947
12. Duties of conciliation officers.- (relevant section 12(2) of ID Act)

(1) Where any industrial dispute exists or is apprehended, the conciliation officer may, or where the dispute relates to a public utility service and a notice under section 22 has been given, shall hold conciliation proceedings in the prescribed manner.

(2) The conciliation officer shall, for the purpose of bringing about a settlement of the dispute, without delay, investigate the dispute and all matters affecting the merits and the right settlement thereof and may do all such things as he thinks fit for the purpose of inducing the parties to come to a fair and amicable settlement of the dispute.

(3) If a settlement of the dispute or of any of the matters in dispute is arrived at in the course of the conciliation proceedings the conciliationofficer shall send a report thereof to the appropriate Government 1 or an officer authorised in this behalf by the appropriate Government] together with a memorandum of the settlement signed by the parties to the dispute.

(4) If no such settlement is arrived at, the conciliation officer shall, as soon as practicable after the close of the investigation, send to the appropriate Government a full report setting forth the steps taken by him for ascertaining the facts and circumstances relating to the dispute and for bringing about a settlement thereof, together with a full statement of such facts and circumstances, and the reasons on account of which, in his opinion, a settlement could not be arrived at.

(5) If, on a consideration of the report referred to in sub- section (4), the appropriate Government is satisfied that there is a case for reference to a Board, 2 Labour Court, Tribunal or National Tribunal,] it may make such reference. Where the appropriate Government does not make such a reference it shall record and communicate to the parties concerned its reasons therefor.

(6) A report under this section shall be submitted within fourteen days of the commencement of the conciliation proceedings or within such shorter period as may be fixed by the appropriate Government: 3 Provided that, 4 subject to the approval of the conciliation officer,] the time for the submission of the report may be extended by such period as may be agreed upon in writing by all the parties to the dispute.]

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