Dear Madhu ji,Is there is notification that for 36 employees not required any procedure. If so please supply. The firm meance any where it should be registered as per Indian Acts are concern.REgards,PBS KUMAR
From India, Kakinada
590From India, Kakinada
It is quite scary to see this issue as it can impact any MNC today.
It is critical to assess the employer throughly before joining a newly established muti-national Company.
Thank you all for sharing all the knowledge.
Regards & Season's greetings
Aparna
From India, Mumbai
It is critical to assess the employer throughly before joining a newly established muti-national Company.
Thank you all for sharing all the knowledge.
Regards & Season's greetings
Aparna
From India, Mumbai
I really appreciate your time and thoughts to my post. I am really grateful to you all.
I am sure whether this can be posted out here from a HR person. But still the passion and love that I have towards my profession creates an interest in to explore more into this situation and get the best possible for the employees who are jobless at the end of the day. As Madhu stated this is matter should be looked upon in a broad angle because it is the present scenario in most of the companies as per the present market conditions.
The information below might be useful for you to give a close solution...
The company is registered under the Companies Act of India and registered as a Privated Limited in the Registrar of Companies in 2006. All the employees are covered under the EPF scheme and those applicable are covered under ESI Scheme. The owners of the company are residents of the US. The authorised person who used to sign the forms also resigned from the company on the same day. The salaries were paid till the date the company operated and there is no pending in that. But all these 36 employees lost their job and they are not sure on how to claim their EPF amount. The EPF claim forms are getting rejected since the details for the current fiscal year has not reached them.
When the returns are not submitted and when the closing formalities what is the procedure to get the claims done. Who will be responsible if an employee files a legal complaint against the company?
From India, Coimbatore
I am sure whether this can be posted out here from a HR person. But still the passion and love that I have towards my profession creates an interest in to explore more into this situation and get the best possible for the employees who are jobless at the end of the day. As Madhu stated this is matter should be looked upon in a broad angle because it is the present scenario in most of the companies as per the present market conditions.
The information below might be useful for you to give a close solution...
The company is registered under the Companies Act of India and registered as a Privated Limited in the Registrar of Companies in 2006. All the employees are covered under the EPF scheme and those applicable are covered under ESI Scheme. The owners of the company are residents of the US. The authorised person who used to sign the forms also resigned from the company on the same day. The salaries were paid till the date the company operated and there is no pending in that. But all these 36 employees lost their job and they are not sure on how to claim their EPF amount. The EPF claim forms are getting rejected since the details for the current fiscal year has not reached them.
When the returns are not submitted and when the closing formalities what is the procedure to get the claims done. Who will be responsible if an employee files a legal complaint against the company?
From India, Coimbatore
Dear Mr PBS Kumar,
Chapter V-A of the Industrial Disputes Act, 1947, (sections 25 C to 25 E) relating to lay off and retrenchment applies to those units in which not less than 50 workers are employed. This chapter does not apply to units employing more than 100 workers (to which Chapter V-B applies)
For companies employing less than 100 workers prior intimation to the government of its intention to close down the company and thereby retrench the workmen is required to be given (Section 25 F). At the same time for companies to which chapter V-B applies, prior permission from the government is required to close down ( Section 25 O). Please correct me if there exists any state amendment regarding the number of employees and application of these two chapters, viz, Chapter V-A and V-B.
Well, the issue was not in fact relating to closure and legality of such closure. Closure has been carried out and that also without any intimation. Since there is no dues pending to EPFO or ESIC filing of nil return for the forthcoming period is enough for them. If at all current year details are required, the same can be managed by consolidation of monthly returns. In order to claim the PF, since the authorised signatory has also left authorities mentioned in the Act, viz, Bank Manager etc, shall be approached and it will not be a problem for the employees to get it. Alternatively, they can easily get the PF transferred to the new account when they join some other firm.
Since the employees do not have any dues in the form of salary the question of filing suit against the company (under section 15 of Pyament of Wages Act?) will not come. Then what is required is to get protection from clients who have dues from the company. This will become a law and order matter and requires attention of the government and local administration.
As stated earlier, it requires a general attention and I feel some way will be found at the earliest.
Regards,
Madhu.T.K
From India, Kannur
Chapter V-A of the Industrial Disputes Act, 1947, (sections 25 C to 25 E) relating to lay off and retrenchment applies to those units in which not less than 50 workers are employed. This chapter does not apply to units employing more than 100 workers (to which Chapter V-B applies)
For companies employing less than 100 workers prior intimation to the government of its intention to close down the company and thereby retrench the workmen is required to be given (Section 25 F). At the same time for companies to which chapter V-B applies, prior permission from the government is required to close down ( Section 25 O). Please correct me if there exists any state amendment regarding the number of employees and application of these two chapters, viz, Chapter V-A and V-B.
Well, the issue was not in fact relating to closure and legality of such closure. Closure has been carried out and that also without any intimation. Since there is no dues pending to EPFO or ESIC filing of nil return for the forthcoming period is enough for them. If at all current year details are required, the same can be managed by consolidation of monthly returns. In order to claim the PF, since the authorised signatory has also left authorities mentioned in the Act, viz, Bank Manager etc, shall be approached and it will not be a problem for the employees to get it. Alternatively, they can easily get the PF transferred to the new account when they join some other firm.
Since the employees do not have any dues in the form of salary the question of filing suit against the company (under section 15 of Pyament of Wages Act?) will not come. Then what is required is to get protection from clients who have dues from the company. This will become a law and order matter and requires attention of the government and local administration.
As stated earlier, it requires a general attention and I feel some way will be found at the earliest.
Regards,
Madhu.T.K
From India, Kannur
Good discuss on recession time , Because lots of people lost thier job without compensation
From India, Delhi
From India, Delhi
Hi All,
I need a serious help here. I have gone through above posts. However the case is similar but employee dues and compensations are different.
I used to work in a US based Software MNC company registered in India ROC having 35 employees here in India. Recently the company has closed down its operations world-wide without giving any formal intimation or termination letters. They had only paid our closing month salary as they shut down on the last day of the month of July 2010. They have not filed any bankruptcy in US. The company is now under a secured creditor in US. All higher management of the company in US including the Board of Directors has been dissolved. Now the secured-creditors have employed our ex-CTO as the acting CEO of the company to help in winding up of the company world-wide.
In terms of compensation they are only paying us 1 month termination notice salary as mentioned in tour appointment letters. Apart from this all employees have the following dues pending:
1. Earned Leaves settlement
2. Form 16: They have deducted tax from our salary in the month July 2010.
3. July 2010 Pay slips
4. Pending Salary Re-imbursements viz. Medical, Car Lease, Telephone/Internet etc.
5. PF : Deducted till July 2010
6. Staff Welfare Fund: This fund accumulated from voluntary deductions from our salaries every month for staff outings and parties. It is a big amount.
7. Relieving letters
So I want to know how we can claim all of the above.
a.What are the legal formalities involved in this?
b.From where to start the procedure?
c.Where to read the laws governinig a Company insolvency in India?
d. How can employees claim the dues, compensation and complete all the necessary legal formalities.
Regards
From India, Delhi
I need a serious help here. I have gone through above posts. However the case is similar but employee dues and compensations are different.
I used to work in a US based Software MNC company registered in India ROC having 35 employees here in India. Recently the company has closed down its operations world-wide without giving any formal intimation or termination letters. They had only paid our closing month salary as they shut down on the last day of the month of July 2010. They have not filed any bankruptcy in US. The company is now under a secured creditor in US. All higher management of the company in US including the Board of Directors has been dissolved. Now the secured-creditors have employed our ex-CTO as the acting CEO of the company to help in winding up of the company world-wide.
In terms of compensation they are only paying us 1 month termination notice salary as mentioned in tour appointment letters. Apart from this all employees have the following dues pending:
1. Earned Leaves settlement
2. Form 16: They have deducted tax from our salary in the month July 2010.
3. July 2010 Pay slips
4. Pending Salary Re-imbursements viz. Medical, Car Lease, Telephone/Internet etc.
5. PF : Deducted till July 2010
6. Staff Welfare Fund: This fund accumulated from voluntary deductions from our salaries every month for staff outings and parties. It is a big amount.
7. Relieving letters
So I want to know how we can claim all of the above.
a.What are the legal formalities involved in this?
b.From where to start the procedure?
c.Where to read the laws governinig a Company insolvency in India?
d. How can employees claim the dues, compensation and complete all the necessary legal formalities.
Regards
From India, Delhi
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