Three Important Components of Salary Issue Complaint

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.

How to Deal with Salary Problem in a Company

At a workplace, certain issues may arise at any point or period of time. Employee issues are the most significant among these.

Employee issues can mar the working environment of a company, resulting in poor quality products and high expenses. Therefore, a company should be very careful about its employees. It should ensure a safe and healthy workplace with on time remuneration or salary payment. Furthermore, it should take care about the other employee benefits and problems frequently faced by them (employees). It is unfortunate that there are many companies that don’t think about their employees. Their sole goal is to earn more. According to them, “Business is business. There is no room for humanity and social responsibility.” They care for nothing and remain indifferent to the pains and pleasure of their employees.

There are many Indian KPO, BPO, and IT companies driven by this motto. Even they don’t pay their employees on time and in many cases, they stop paying their employees permanently without giving them any notice. To be more precise, they don’t say anything and never forbid their employees to come to the office. They only stop paying their employees with the notion that they will not come gradually due to nonpayment. Consequently, lots of complaints started coming from the various part of India till the last year. Only in the northern India, the number reached more than a lakh.

Besides, a Hyderabad-based software firm named Serene Solutions came under the scanner when seven employees lodged a police complaint against the firm for not paying them salaries.

To combat with the situation, the labor ministry came forward with new amendments and some modifications (in the employment laws of India) for the employees working in private and non-pensionable public sectors. To monitor all these complaints many consumer forums and district forums were established under Consumer Protection Act-1986. The consumer forums ensure all provisions required to safeguard the interests of (employers and employees). These offer them many privileges applicable to Labour and Employment Laws in India. Furthermore, many consumer forums, state and central labor commissions have launched many online complaint portals to register employee problems over the internet.

To register your salary problem in a company or other grievances online, you can follow these links

http://www.consumerhelpline.gov.in/signup.php

http://www.clc.gov.in/

Once your complaints get registered, you can have the updates on it just logging into it. If needed, labor commissioner can call you at his office to know about it in detail and verify all necessary documents. Labor commission will take all initiatives to solve the matter. The commissioner can call both the parties before him. If any solution does not come out, he or she will forward your case to the Labour Court for the right judgment. If the Labour Court is fully satisfied with your explanation, they will take legal action against your employer and force him or her to pay your dues. The due amount could be collected from the collector’s office.