Dear All,
I have a small business.
The employee; A Car Driver having served only 1.5 years has suddenly left the the job due to a verbal quarrel for time magement; has send my company a legal notice from labour side saying:
1) His application for bonus was rejected.
2) He's not paid overtime
3) He was told to work on Sundays. etc.
However, the fact is as follows:
1) His official application to company of 8000/- advance was rejected, But a personal 5000/- loan was given without voucher.
2) His working hours were 9:30am to 7:00pm. (Overtime??)
3) Looking at last 2-3 months attendence record, He has not worked for any sunday, and for working day absence, Still we paid him full salary.
Please guide Me for further action.
Regards,
PSHAH

From India, Vadodara
Dear Mr. Shah,
Good Evening!
As per your mail following facts are revealed :
a. Bonus is not subject to apply by the Employee its by default under defined circumstances.
b. The person was not doing Over time but its subject to the time of working had communicated him at the time of joining.
c. Any time u or ur superior asked him to work at Sunday, if yes pay him for that particular day
And try to settle the matter on table.
Rgds

From India, Mumbai
Hello,

Again you need to provide more substantive information if you need proper advice! Kindly provide replies tot he following questions:

1) How old is your company? Are we talking about a factory under Factories Act or about an establishment under Shops & Comm. Establishments Act?

2) What is the form of your company i.e. Sole Proprietorship, Partnership or a company registered under India Companies Act 1956

3) How many employees do you employ-on company rolls and through Contractor/s? Is the Driver your personal employee or is on company rolls?

4) Is Payment of Bonus Act 1965 applicable to your organization?

5) What have you paid to the individual? An advance, or Bonus under the Act or you have made an ex-gratia payment" Can you "prove" it through your books of accounts or otherwise?

I am raising all these questions to better appreciate your predicament. Kindly take a note of the following.

1) If you are an establishment under Factories Act the OT has to be paid (by law) only for the work done "inside " the factory at twice thew normal rate of wages and for work done beyond 48 hours.

2) Bonus under the Act has to be percentage derived from your final accounts following the method stipulated under the Act.

3) Working on Sundays, if outside the factory, is not a critical issue from law point of view. We can deal with it based on the facts of the matter!

What you have received is apparently NOT a notice in the conventional sense from a practicing lawyer. I suppose it is a letter from the local department. You should attend the matter preferably along with a consultant/labour lawyer and deal with the matter. The worst that can happen in the matter that the labour office will have to send the matter for adjudication if no resolution of the complaint takes place with his effort. He is only going to try and scare you with so called "legal consequences" and attempt working out a financial settlement (of which he may receive a part from the workman!). This happens very commonly in this department. Evidently either the Driver has approached the authorities on his own or through some acquaintance well versed in such matter.

But there nothing to worry!

Regards

samvedan

June 3, 2012

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From India, Pune
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