Salary problem is probably the most sensitive issue that the employees sometimes face in a company.
It may arise in three distinctive ways as motioned below:
a)-A company is not paying salary to its employees
b)-A company is not submitting the PF amount to its employees’ provident fund accounts
c)-A company is not depositing the tax deducted at source (TDS)
This article will discuss on each type one by one in the next three paragraphs.
1- A company is not paying salary to its employees
For the nonpayment of salary, employees can approach before the Labor Commissioner to file a salary issue complaint against the company. The Labour Commissioner will take all important initiatives to reconcile this matter. He or she can forward the complaint to the Labour Court. Even victims (nonpaid employees) can appeal directly to the Labour Court under Section 33 (C) of the Industrial Dispute Act, 1947. If the labor court is satisfied with the explanations and grievances recorded in the applications, it will take all necessary actions and offer all provisions mentioned under the employment law of India. It will issue a certificate to recover the pending amount from the Collector office.
2- A company is not submitting the PF and taxes
This is another component of employee problems. If the company does not pay the applicable PF amount, you can lodge a complaint to the EPFO (Employees’ Provident Fund Organization). Even one can register his or her grievances online by following the link given below: http://memberclaims.epfoservices.in/ In the case of the filing of no tax return and non-submission of Form 16, either the employee or the employer is liable to pay interest and penalty for failure of tax deduction under the following terms and conditions as mentioned below. If the employer fails or neglects to deduct taxes and deposit it timely to the income tax office, the responsibility would go the person who has earned the amount. If the employee has deposited his or her taxes in time, the employer will be responsible for it. For the failure of a tax deduction, he (employer) must pay the interest and other amount decided as penalty.
3- A company is not depositing the tax deducted at source (TDS)
There are two types of employee issues, regarding TDS (tax deducted at source). One is TDS deducted but not deposited. Another is not deducted and deposited. The general rule is that in the case of tax deductible at the source, the assessee will not be called upon to pay the taxes deducted from the income. Under the tax recovery scheme of TDS, person accountable for making payment of income is responsible for deducting TDS and depositing the same to the government. Therefore, it is easy to understand that in both the cases the person who responsible for making payment would be liable bear penalty and the interest.
Moreover, employment laws of India allow you to seek penalty- if you are affected personally by the fraudulent activities of a company.