Hello,
I worked with my previous employer for a little over 4 years and have had cordial relations with everyone. In July 2013, I was sent to the Philippines for an overseas assignment on behalf of my company to work for a Telecom Giant there. My company in India contracted me to its subsidiary in Singapore, which employed me as a Contractor for the assignment. (To explain better, let's call the Indian company - XXXX India Pvt. Ltd. and the Singapore company - XXXX Singapore). When they were devising the contract, I was told that my compensation details would be as follows:
Monthly salary of $2700/month + accommodation + taxi/internet/mobile expenses (the usual) AND I was told that the company will pay my taxes. In the main contract, they didn't mention paying my tax expenses due to some legalities. However, they gave me an addendum letter on which it was clearly stated that the company will pay taxes paid by me in actual upon submission of proof of payment. In exact words, the following -
"Any taxes deemed payable in the Philippines will need to be filed by you locally. In addition, if there are any tax liabilities due to your overseas assignment in India, please check with the local auditor Mr. XXXX and file appropriately. The monthly fee paid by XXXX Singapore will be gross i.e. exclusive of any taxes payable in Manila/India. XXXX Singapore will reimburse the taxes actually paid by you in respect of the assignment upon your submission of proof of payment."
Now, I paid my taxes in July 2014 for FY - 2013-14 and claimed accordingly. I was following up on it constantly but it kept moving from one person to the other, and they asked me about the details of my claims which I confirmed several times. I had to quit my job for my Master's studies, for which I am now in Belgium. My last working day was on 29th September '14 until when I had been given no information about my claims along with my last month's salary and my yearly bonus which was still pending. Also, please note that my previous company was bought by Amdocs early last year, however, it is still the people from my company who were taking care of these things.
They gradually paid my last month's salary and yearly bonus; however, after months of following up, they replied a couple of days ago that they will not be paying me my taxes citing their CFO, who I know had quit or was fired by the company back in July '14. I am trying to get in touch with my ex-manager and HR to see my next course of action as I don't want to take any irrational decisions and would rather resolve this amicably. Moreover, I am not sure what I can do while being here in Belgium as I cannot go to the labor office personally.
Nevertheless, if the company fails to pay me, I would like to know what my options are and if I can file a lawsuit for the breach of the contract and trust or not? If yes, up to how much amount can I claim as damages/harassment aside from the pending claims? The amount claimable runs into around Rs. 4,50,000 so any advice would be highly appreciated.
Thank you,
Vineet
From Belgium, Brussels
I worked with my previous employer for a little over 4 years and have had cordial relations with everyone. In July 2013, I was sent to the Philippines for an overseas assignment on behalf of my company to work for a Telecom Giant there. My company in India contracted me to its subsidiary in Singapore, which employed me as a Contractor for the assignment. (To explain better, let's call the Indian company - XXXX India Pvt. Ltd. and the Singapore company - XXXX Singapore). When they were devising the contract, I was told that my compensation details would be as follows:
Monthly salary of $2700/month + accommodation + taxi/internet/mobile expenses (the usual) AND I was told that the company will pay my taxes. In the main contract, they didn't mention paying my tax expenses due to some legalities. However, they gave me an addendum letter on which it was clearly stated that the company will pay taxes paid by me in actual upon submission of proof of payment. In exact words, the following -
"Any taxes deemed payable in the Philippines will need to be filed by you locally. In addition, if there are any tax liabilities due to your overseas assignment in India, please check with the local auditor Mr. XXXX and file appropriately. The monthly fee paid by XXXX Singapore will be gross i.e. exclusive of any taxes payable in Manila/India. XXXX Singapore will reimburse the taxes actually paid by you in respect of the assignment upon your submission of proof of payment."
Now, I paid my taxes in July 2014 for FY - 2013-14 and claimed accordingly. I was following up on it constantly but it kept moving from one person to the other, and they asked me about the details of my claims which I confirmed several times. I had to quit my job for my Master's studies, for which I am now in Belgium. My last working day was on 29th September '14 until when I had been given no information about my claims along with my last month's salary and my yearly bonus which was still pending. Also, please note that my previous company was bought by Amdocs early last year, however, it is still the people from my company who were taking care of these things.
They gradually paid my last month's salary and yearly bonus; however, after months of following up, they replied a couple of days ago that they will not be paying me my taxes citing their CFO, who I know had quit or was fired by the company back in July '14. I am trying to get in touch with my ex-manager and HR to see my next course of action as I don't want to take any irrational decisions and would rather resolve this amicably. Moreover, I am not sure what I can do while being here in Belgium as I cannot go to the labor office personally.
Nevertheless, if the company fails to pay me, I would like to know what my options are and if I can file a lawsuit for the breach of the contract and trust or not? If yes, up to how much amount can I claim as damages/harassment aside from the pending claims? The amount claimable runs into around Rs. 4,50,000 so any advice would be highly appreciated.
Thank you,
Vineet
From Belgium, Brussels
Dear Vineet,
First and foremost, you deserve appreciation for writing everything in sequence. It comes with a lot of learning. You must have worked under professional managers. We, the seniors, are so accustomed to finding incomplete posts that the idea of a member of this kind was a little unthinkable. Kudos to you.
Coming to your query. The contract letter and addendum have been issued in India; therefore, you can send the lawyer's notice to your ex-company. When choosing a lawyer, please ensure that he has experience handling cases under the Indian Contract Act, 1872. Also, select a lawyer from a city where the ex-company's office is located.
Now the question is, what if the company does not respond to the lawyer's notice? In that case, you may need to file a full-fledged suit. Your personal appearance is required for the first hearing. Check with the lawyer if your personal appearance can be exempted since you are abroad pursuing higher studies. Personal appearance, especially for the first hearing, could be a challenging issue.
However, before sending the lawyer's notice, you may consider sending a letter to the MD of your company. See if he can assist you. India is known for judicial tardiness; therefore, an amicable settlement, even by waiving interest on the unpaid amount, could be a better option.
All the best!
Dinesh Divekar
From India, Bangalore
First and foremost, you deserve appreciation for writing everything in sequence. It comes with a lot of learning. You must have worked under professional managers. We, the seniors, are so accustomed to finding incomplete posts that the idea of a member of this kind was a little unthinkable. Kudos to you.
Coming to your query. The contract letter and addendum have been issued in India; therefore, you can send the lawyer's notice to your ex-company. When choosing a lawyer, please ensure that he has experience handling cases under the Indian Contract Act, 1872. Also, select a lawyer from a city where the ex-company's office is located.
Now the question is, what if the company does not respond to the lawyer's notice? In that case, you may need to file a full-fledged suit. Your personal appearance is required for the first hearing. Check with the lawyer if your personal appearance can be exempted since you are abroad pursuing higher studies. Personal appearance, especially for the first hearing, could be a challenging issue.
However, before sending the lawyer's notice, you may consider sending a letter to the MD of your company. See if he can assist you. India is known for judicial tardiness; therefore, an amicable settlement, even by waiving interest on the unpaid amount, could be a better option.
All the best!
Dinesh Divekar
From India, Bangalore
Dear Dinesh,
Thank you so much for the prompt response. I just wanted to be as thorough as possible in my query. I spoke to my ex-manager about it, and he is also dumbfounded why the company is refusing to pay despite it being clearly written in the contract. He will check with the HR who responded to me to find the legitimate reason. Knowing how slow Indian law works, I would want nothing more than to settle this amicably. This would keep my relations with my employer both cordial and open for future employment as well.
Nevertheless, if it comes to filing a lawsuit, I have an additional query - Will I need to file it against just the company, or would I have to name the individuals involved as well? For example, the signatory of the contract, the manager who negotiated the terms and conditions with me, my previous manager who also confirmed about it, as it involves all of them in the case of "breach of trust and deceit."
Secondly, as I mentioned, my company was bought by Amdocs, so it is under their management now, and the company may no longer exist technically. Who shall I send the notice to? My previous company or Amdocs Pvt. Ltd. or both together? I suppose the lawyer will know more about this, but just thinking out loud here.
I will try to reach the ex-CEO of the company (he is part of Amdocs management now) as advised by you to get his opinion and intervention in the matter.
Thanks again.
Warm Regards,
Vineet
From Belgium, Brussels
Thank you so much for the prompt response. I just wanted to be as thorough as possible in my query. I spoke to my ex-manager about it, and he is also dumbfounded why the company is refusing to pay despite it being clearly written in the contract. He will check with the HR who responded to me to find the legitimate reason. Knowing how slow Indian law works, I would want nothing more than to settle this amicably. This would keep my relations with my employer both cordial and open for future employment as well.
Nevertheless, if it comes to filing a lawsuit, I have an additional query - Will I need to file it against just the company, or would I have to name the individuals involved as well? For example, the signatory of the contract, the manager who negotiated the terms and conditions with me, my previous manager who also confirmed about it, as it involves all of them in the case of "breach of trust and deceit."
Secondly, as I mentioned, my company was bought by Amdocs, so it is under their management now, and the company may no longer exist technically. Who shall I send the notice to? My previous company or Amdocs Pvt. Ltd. or both together? I suppose the lawyer will know more about this, but just thinking out loud here.
I will try to reach the ex-CEO of the company (he is part of Amdocs management now) as advised by you to get his opinion and intervention in the matter.
Thanks again.
Warm Regards,
Vineet
From Belgium, Brussels
Dear Vineet,
If you file a suit, you would be filing as an ex-employee and not in a personal capacity. Therefore, you may file it against the Managing Director of the company. Everything that happens in the company is because the MD delegates power to the respective Manager in the hierarchy. However, for the omissions of his subordinates, he is responsible.
Secondly, you may file a suit against Amdocs. When they took over your old company, they assumed all the liabilities, including non-payment of allowances or wages of any kind to the ex-employees.
All the best!
Dinesh Divekar
From India, Bangalore
If you file a suit, you would be filing as an ex-employee and not in a personal capacity. Therefore, you may file it against the Managing Director of the company. Everything that happens in the company is because the MD delegates power to the respective Manager in the hierarchy. However, for the omissions of his subordinates, he is responsible.
Secondly, you may file a suit against Amdocs. When they took over your old company, they assumed all the liabilities, including non-payment of allowances or wages of any kind to the ex-employees.
All the best!
Dinesh Divekar
From India, Bangalore
Dear Dinesh Thank you so much for your advice. I will see how it goes in next week. I will write again seeking your advice if it doesn’t go too well. Much appreciated. Cheers Vineet
From Belgium, Brussels
From Belgium, Brussels
Just following the queries and replies of Vineet and Dinesh. Kudos to both of them. One hundred percent professional way of seeking advice and offering solutions. It is a rarity with the present-day generation.
I also learned from the replies sent by Dinesh. Best wishes to Vineet.
From India, New Delhi
I also learned from the replies sent by Dinesh. Best wishes to Vineet.
From India, New Delhi
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