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Employment and Labour Employment and Labour

3 months ago

My family member has been working at an organisation for a really long time but since covid, the organisation has been running in loss and they stopped paying the salaries but my family member kept working as they kept giving him the hope that in future he will be paid all the pending salaries. However, he did not get paid for 3-4 years.

1st question - He has decided to leave the organisation but he is wondering that if he resigns will he get the pending salaries after resigning??

Legal Counsel Vidhikarya

Responded 3 months ago

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A.Dear Client,
An employee is entitled to get remuneration for the days/period he is in employment and contributed his skill and labour for the growth and gain of a company regardless of the profit or loss of the Company. So, on cessation of employment through resignation following the terms of employment, i.e serving a notice period post-resignation, an employee is entitled to receive full and final settlement dues including arrears of salaries/wages along with other service-linked benefits like gratuity, PF, leave encashment subject to his eligibility. If the company denies a legitimate claim of an employee, he can raise a dispute against the Company on the ground of unfair labour practice before the concerned Labour Commissioner for redressal provided he is a workman as defined under Sec.2(s) of the Industrial Dispute Act, 1947. The employee can apply to the concerned Labour Court under Sec.33C(2) of the I D Act claiming his full and final dues receivable from the Company on resignation. Otherwise, if the employee holds a position of Manager or Supervisor in the Company, he has to file a civil suit for recovery of his dues from the employer/Company.
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