Hi Seniors!
I worked for an organization where there is a sales process, and executives are supposed to bring in business for the company. Last month, they did not generate any business, so are they eligible to ask for their salary if they have resigned? Moreover, the company has not provided offer letters to the employees; they have only given a Letter of Intent. They also do not issue any salary slips as they are new in the industry.
If the company does not provide the salary, what actions should be taken against them so that the candidates can receive their salaries, especially since all of them are outstationed candidates?
One more thing I would like to ask is if there are any required qualifications for a Managing Director, or can a 12th pass-out become a Managing Director?
Please answer immediately.
Thank you,
Bhumika Kaur
From India, Delhi
6I worked for an organization where there is a sales process, and executives are supposed to bring in business for the company. Last month, they did not generate any business, so are they eligible to ask for their salary if they have resigned? Moreover, the company has not provided offer letters to the employees; they have only given a Letter of Intent. They also do not issue any salary slips as they are new in the industry.
If the company does not provide the salary, what actions should be taken against them so that the candidates can receive their salaries, especially since all of them are outstationed candidates?
One more thing I would like to ask is if there are any required qualifications for a Managing Director, or can a 12th pass-out become a Managing Director?
Please answer immediately.
Thank you,
Bhumika Kaur
From India, Delhi
Dear Friend,
The contents of your letter of intent may be useful to answer your question. Whether the employees were engaged on a commission basis or a salary basis?
Further, there is no educational qualification prescribed under the Companies Act for becoming the managing director of any company.
Regards
From India, Vadodara
The contents of your letter of intent may be useful to answer your question. Whether the employees were engaged on a commission basis or a salary basis?
Further, there is no educational qualification prescribed under the Companies Act for becoming the managing director of any company.
Regards
From India, Vadodara
thanks but in Letter of Intent nothing is mentioned apart from the documents which was supposed to submit at the date of joining.... and all of them were on salary basis...
From India, Delhi
From India, Delhi
Dear Friend, If it is so... then the employer has to pay the salary as agreed, provided there is no clause of conditional payment in LOI. Regards
From India, Vadodara
From India, Vadodara
Hi, I also faced the same situation; my company paid salary because company considered their service to their existing customers also those employees resigned only after taking their salary.
From India, Bangalore
From India, Bangalore
Hi,
That is the reason salespeople are given a 40% fixed salary and a 60% variable salary depending on achieving targets or vice versa, or as negotiated during the hiring process for a sales profile. However, not providing any salary at all just because someone failed to generate business is unethical and illegal. The person has invested time and effort; if you don't provide a salary, it means the person has simply wasted their earning potential and time on your company as charity.
Receiving an appointment letter is the basic right of any candidate. These kinds of issues arise when a company engages in unfair business practices and begins questioning if someone is deserving of a salary after utilizing their services for a few months. As an HR professional, it is essential to rectify such processes. While one may not expect much maturity from a director who has only passed the 12th grade, a company thrives longer with fair business practices. This is something that may need to be explained to the Managing Director with maturity and tact.
Thanks,
Geeta
From Korea, Seoul
That is the reason salespeople are given a 40% fixed salary and a 60% variable salary depending on achieving targets or vice versa, or as negotiated during the hiring process for a sales profile. However, not providing any salary at all just because someone failed to generate business is unethical and illegal. The person has invested time and effort; if you don't provide a salary, it means the person has simply wasted their earning potential and time on your company as charity.
Receiving an appointment letter is the basic right of any candidate. These kinds of issues arise when a company engages in unfair business practices and begins questioning if someone is deserving of a salary after utilizing their services for a few months. As an HR professional, it is essential to rectify such processes. While one may not expect much maturity from a director who has only passed the 12th grade, a company thrives longer with fair business practices. This is something that may need to be explained to the Managing Director with maturity and tact.
Thanks,
Geeta
From Korea, Seoul
CiteHR.AI
(Fact Checked)-[response] The statement regarding the split of fixed and variable salary for salespeople is generally accurate. However, not providing any salary due to lack of business is indeed illegal. Appointment letters are a basic right for employees. Regarding the qualifications for a Managing Director, educational requirements can vary, but competency is essential. (1 Acknowledge point)
Dear Bhumika,
The organization is not providing appointment letters, not paying salaries, and refusing to conduct full and final settlements for employees. What is the HR department doing in this situation? When you hire an employee, you are obligated to pay their salary. You cannot withhold an employee's salary by simply stating that they are not generating business. By doing so, you are violating the provisions of the Payment of Wages Act and putting the organization at risk. According to the Industrial Disputes Act, you must settle an employee's dues when they resign or leave the organization. Failure to comply with the laws of the land can lead to legal troubles. It appears that your HR policies are chaotic; it is crucial to address and resolve these issues promptly.
For more HR-related information, visit: White Eagle
[url=http://kuldeeprathore.blogspot.com/]
*I have corrected the spelling and grammar errors while maintaining the original message's meaning and tone. I have also ensured proper paragraph formatting with a single line break between paragraphs.*
From India, Hyderabad
The organization is not providing appointment letters, not paying salaries, and refusing to conduct full and final settlements for employees. What is the HR department doing in this situation? When you hire an employee, you are obligated to pay their salary. You cannot withhold an employee's salary by simply stating that they are not generating business. By doing so, you are violating the provisions of the Payment of Wages Act and putting the organization at risk. According to the Industrial Disputes Act, you must settle an employee's dues when they resign or leave the organization. Failure to comply with the laws of the land can lead to legal troubles. It appears that your HR policies are chaotic; it is crucial to address and resolve these issues promptly.
For more HR-related information, visit: White Eagle
[url=http://kuldeeprathore.blogspot.com/]
*I have corrected the spelling and grammar errors while maintaining the original message's meaning and tone. I have also ensured proper paragraph formatting with a single line break between paragraphs.*
From India, Hyderabad
CiteHR.AI
(Fact Checked)-The user reply is correct in stating that an organization must pay employees their salaries as per the Payment of Wages Act and clear dues upon resignation. It highlights the importance of following labor laws and HR policies to avoid legal trouble. (1 Acknowledge point)
Hi, I was a Senior Training Manager with the organization. They have a girl in the HR department who doesn't have any knowledge regarding HR policies. I don't know what's going to happen if they do not give salary to my team. Can they send them a legal notice?
From India, Delhi
From India, Delhi
CiteHR.AI
(Fact Checked)-The user's reply is partially correct. They can potentially send a legal notice if salaries are not paid, but HR policies should be followed. Seek legal advice to proceed. (1 Acknowledge point)I’m a fresher and I’m alone working as a HR person in my company, so, I would like to clear few doubts from senior members like youJ.
I’m working for a marketing company, since we are in to marketing, candidates will join and immediately leave with in 2days/a week/ some times till they receive their first month salary. if we give them any appointment letter and complete their joining formalities on the first day itself, wont it be a problem for the company when the new candidate stop coming to office in single no. of days?
Please guide me, because we are not giving any Appointment Letter on the day of joining.
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From India, Bangalore
CiteHR.AI
(Fact Checked)-[B]Response[/B]: The absence of generating business doesn't negate the right to salary. Appointment letters are crucial, and non-payment is unlawful. Thank you for seeking guidance and clarifications. (1 Acknowledge point)
Hi Akshaya,
I would like to tell you that an appointment letter is a proof that confirms your permanent status within the organization, and typically, companies issue it within 3 months. Do you provide offer letters at the time of selecting a candidate? The documentation should be completed on the first day of joining as this is a method to get to know the person you are hiring, so that should not be a problem.
From India, Delhi
I would like to tell you that an appointment letter is a proof that confirms your permanent status within the organization, and typically, companies issue it within 3 months. Do you provide offer letters at the time of selecting a candidate? The documentation should be completed on the first day of joining as this is a method to get to know the person you are hiring, so that should not be a problem.
From India, Delhi
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CiteHR.AI
(Fact Checked)-The user's reply is [B]correct[/B]. Thank you for your input and prompt response. (1 Acknowledge point)