One of the pharma industry's Area sales managers was removed during the probationary period and withheld 45 working days' salary and 75 days' expenses, citing the reason for nonperformance. What action can the area sales manager take against the company?
From India, Tirupur
From India, Tirupur
No action can be taken for termination but you can claim the unpaid salary and expenses as per the travel policy. This is because, termination during probation cannot be challenged. Moreover, an Area Sales Manager being a manager who will not get any protection of Industrial Disputes Act or Sales Promotion Employees (Conditions of Service) Act, if you are in pharma and other industries like, paint, Electronics and electrical appliances, soft drinks, readymade garments,Cosmetics, soaps, household cleaners and disinfectants, automobiles, surgical instruments, Biscuits and confectioneries etc.
From India, Kannur
4242From India, Kannur
One of the pharma industry's Area sales managers was forced to accept pro rata salary Or to quit during the probationary period and withheld 45 working days' salary and 75 days' expenses, citing the reason for nonperformance.and his reporting portal is blocked without his consent,Now the manager asking about his employment status but no response given to him.
What action can the area sales manager take against the company?
From India, Tirupur
What action can the area sales manager take against the company?
From India, Tirupur
Hi Gaowtham,
Review Employment Contract and Company Policies:
Contractual Terms:
Carefully review the employment contract to understand the terms regarding probationary periods, salary, expenses, performance expectations, and termination procedures.
Company Policies:
Check the company's handbook or policies related to probation, salary adjustments, and dispute resolution.
Document Everything:
Records: Keep detailed records of all communications with the company, including emails, messages, and any written notices regarding the salary adjustment, withholding of payments, and blocked access to the reporting portal.
Performance Evidence:
Collect evidence of your performance, such as sales reports, client feedback, and any other relevant documentation that demonstrates your work and achievements.
Formal Communication:
Written Request: Send a formal written request to the company (preferably through email or registered mail) seeking clarification on your employment status, reasons for salary and expense with holdings, and blocked access to your reporting portal. Request a response within a reasonable time frame.
Engage HR Department:
HR Consultation: Reach out to the Human Resources department to discuss your concerns. HR may provide an explanation or help mediate the situation.
Legal Consultation:
Lawyer knowledge on Labour Laws::
Consult with a lawyer dealing with Labour Laws to understand your legal rights and options. An attorney can provide advice based on local labour laws and regulations.
Legal Action:
If necessary, your lawyer may suggest sending a legal notice to the company demanding payment of the withheld salary and expenses or filing a complaint with the appropriate labor authorities or a lawsuit for breach of contract and wrongful treatment.
Approach Labour Authorities:
Labour Office: File a complaint with the labour office or relevant governmental agency that handles employment disputes. They can investigate your claim and may facilitate a resolution or take action against the company.
Alternative Dispute Resolution:
Mediation or Arbitration:
If your contract includes a clause for mediation or arbitration, consider initiating these processes to resolve the dispute without going to court.
By taking these steps, the area sales manager can assert their rights and seek a resolution to the issue
of withheld salary and expenses, as well as clarify their employment status.
Thanks
From India, Bangalore
Review Employment Contract and Company Policies:
Contractual Terms:
Carefully review the employment contract to understand the terms regarding probationary periods, salary, expenses, performance expectations, and termination procedures.
Company Policies:
Check the company's handbook or policies related to probation, salary adjustments, and dispute resolution.
Document Everything:
Records: Keep detailed records of all communications with the company, including emails, messages, and any written notices regarding the salary adjustment, withholding of payments, and blocked access to the reporting portal.
Performance Evidence:
Collect evidence of your performance, such as sales reports, client feedback, and any other relevant documentation that demonstrates your work and achievements.
Formal Communication:
Written Request: Send a formal written request to the company (preferably through email or registered mail) seeking clarification on your employment status, reasons for salary and expense with holdings, and blocked access to your reporting portal. Request a response within a reasonable time frame.
Engage HR Department:
HR Consultation: Reach out to the Human Resources department to discuss your concerns. HR may provide an explanation or help mediate the situation.
Legal Consultation:
Lawyer knowledge on Labour Laws::
Consult with a lawyer dealing with Labour Laws to understand your legal rights and options. An attorney can provide advice based on local labour laws and regulations.
Legal Action:
If necessary, your lawyer may suggest sending a legal notice to the company demanding payment of the withheld salary and expenses or filing a complaint with the appropriate labor authorities or a lawsuit for breach of contract and wrongful treatment.
Approach Labour Authorities:
Labour Office: File a complaint with the labour office or relevant governmental agency that handles employment disputes. They can investigate your claim and may facilitate a resolution or take action against the company.
Alternative Dispute Resolution:
Mediation or Arbitration:
If your contract includes a clause for mediation or arbitration, consider initiating these processes to resolve the dispute without going to court.
By taking these steps, the area sales manager can assert their rights and seek a resolution to the issue
of withheld salary and expenses, as well as clarify their employment status.
Thanks
From India, Bangalore
Dear Gaowtham,
There is a discrepancy between the 2 posts you have made.
What is the real problem?
Are you the concerned manager who has been removed or are you from HR and wanting to know how to protect the company?
Salary and expenses can not be withheld for lack of performance, but it can be withheld for fraud, fake expense claims or if the employee did not actually go to the clients as he reported. You said that he was given prorate salary and then you said he has not been paid for 45 days. I am a little confused.
As for what action he can take, he mostly has the option only to file a civil or criminal case against the company and its directors. But legal notice or a call from Labour Commissioner also helps move things, specially if the employer realises it could cause a lot of unexpected problems.
If he can show he was not really a manager (no admin right, no function or control over subordinates), then he can also file complaint under industrial dispute act, I think
From India, Mumbai
There is a discrepancy between the 2 posts you have made.
What is the real problem?
Are you the concerned manager who has been removed or are you from HR and wanting to know how to protect the company?
Salary and expenses can not be withheld for lack of performance, but it can be withheld for fraud, fake expense claims or if the employee did not actually go to the clients as he reported. You said that he was given prorate salary and then you said he has not been paid for 45 days. I am a little confused.
As for what action he can take, he mostly has the option only to file a civil or criminal case against the company and its directors. But legal notice or a call from Labour Commissioner also helps move things, specially if the employer realises it could cause a lot of unexpected problems.
If he can show he was not really a manager (no admin right, no function or control over subordinates), then he can also file complaint under industrial dispute act, I think
From India, Mumbai
Ok, hope this is the same case as in 1. Again, this is the case of a manager and in probation. Offering pro rata salary or reduced salary is unfair but if the manager is found to be fit to get that reduced salary only, what shall the management do? They can terminate him. Alternatively, offer an lesser position with lesser salary, right? Regarding non payment of actual expenses, the employee has to negotiate or go to court following the Civil Procedure Codes. The Labour Officer will not help him to get it just because he was a manager and not a worker nor a sales promotion employee. The definition of sales promotion employee as per section 2(d) of the Sales Promotion Employees (Conditions of Service) Act is almost similar to what is given in the ID Act, and it excludes such persons:
(i) who, being employed or engaged in a supervisory capacity, draws wages exceeding sixteen hundred rupees per mensem; or
(ii) who is employed or engaged mainly in a managerial or administrative capacity.
From India, Kannur
(i) who, being employed or engaged in a supervisory capacity, draws wages exceeding sixteen hundred rupees per mensem; or
(ii) who is employed or engaged mainly in a managerial or administrative capacity.
From India, Kannur
Dear saswata banerjee ,
it can be withheld for fraud, fake expense claims or if the employee did not actually go to the clients as he reported.
No such discussion happen between the concern manager and his immediate reporting officer or with any other hirearchies through any mode of communication. Only citing the reasons of non performance. and forced to accept pro rata basis salary but that manager denied to accept as it is not signed in employment offer letter, after that only they given instruction to payroll dept to withhold his salary and expenses. Now the manager is struggling to meet his daily expenses.
From India, Tirupur
it can be withheld for fraud, fake expense claims or if the employee did not actually go to the clients as he reported.
No such discussion happen between the concern manager and his immediate reporting officer or with any other hirearchies through any mode of communication. Only citing the reasons of non performance. and forced to accept pro rata basis salary but that manager denied to accept as it is not signed in employment offer letter, after that only they given instruction to payroll dept to withhold his salary and expenses. Now the manager is struggling to meet his daily expenses.
From India, Tirupur
Sir/Madam,
you have said that you terminate/removed (two different word having different meaning) him. have you done domestic enquiry against him? if you did it without enquiry, you have to pay him at any cost. if you did enquiry and find him guilty then withholding of payment and allowances may be a punishment. your punishment is terminate/removed him.
From India, Indore
you have said that you terminate/removed (two different word having different meaning) him. have you done domestic enquiry against him? if you did it without enquiry, you have to pay him at any cost. if you did enquiry and find him guilty then withholding of payment and allowances may be a punishment. your punishment is terminate/removed him.
From India, Indore
Dear All, I have a few questions.
1. Can an organization Terminate Service Without giving the reason for Non-Performance? is it legal?
2. Can an employee go to Labor Court when no show cause or notice is given to him for non-performance?
3. What precautions should be taken to avoid legal issues?
4. Is the ID Act applicable to managerial staff?
From India, Mumbai
1. Can an organization Terminate Service Without giving the reason for Non-Performance? is it legal?
2. Can an employee go to Labor Court when no show cause or notice is given to him for non-performance?
3. What precautions should be taken to avoid legal issues?
4. Is the ID Act applicable to managerial staff?
From India, Mumbai
1. Can an organization Terminate Service Without giving the reason for Non-Performance? is it legal?
Non performance is a valid reason for termination of employment. But the employer should give the employee reasonable time to improve the performance. During probation also if the reason for termination is cited in the termination letter, the same is illegal, not justifiable and against the ethics because such an order should be considered as stigmatic order. Before initiating such an action the employee should be given an opportunity to be heard, and in the case of non performance, sufficient time to improve his performance. Well, if a probationer is terminated without assigning any reason, then that would be proper provided the appointment order contains a clause that "during probation your service shall be terminated without notice and without assigning any reason therefor".
2. Can an employee go to Labor Court when no show cause or notice is given to him for non-performance?
If termination is during probation and without any reason to show, like non performance, he cannot approach any dispute redressal authority. At the same time, if the order contains a reason for termination, ie, non performance, and he was not given any opportunity nor a show cause notice, he can approach the Conciliation Officer first and then if the conciliation fails, the Conciliation Officer himself may refer it to adjudication. It should be the Conciliation Officer, ie, Labour Officer who should be approached directly and not the labour Court.
3. What precautions should be taken to avoid legal issues?
In order to avoid issues, the contract of agreement / appointment letter should be drafted carefully, and the termination should be based on that contract/ appointment order
4. Is the ID Act applicable to managerial staff?
Normally NO. A person having managerial powers cannot get any protection of ID Act. But he should be manager by functions and not by designation
From India, Kannur
Non performance is a valid reason for termination of employment. But the employer should give the employee reasonable time to improve the performance. During probation also if the reason for termination is cited in the termination letter, the same is illegal, not justifiable and against the ethics because such an order should be considered as stigmatic order. Before initiating such an action the employee should be given an opportunity to be heard, and in the case of non performance, sufficient time to improve his performance. Well, if a probationer is terminated without assigning any reason, then that would be proper provided the appointment order contains a clause that "during probation your service shall be terminated without notice and without assigning any reason therefor".
2. Can an employee go to Labor Court when no show cause or notice is given to him for non-performance?
If termination is during probation and without any reason to show, like non performance, he cannot approach any dispute redressal authority. At the same time, if the order contains a reason for termination, ie, non performance, and he was not given any opportunity nor a show cause notice, he can approach the Conciliation Officer first and then if the conciliation fails, the Conciliation Officer himself may refer it to adjudication. It should be the Conciliation Officer, ie, Labour Officer who should be approached directly and not the labour Court.
3. What precautions should be taken to avoid legal issues?
In order to avoid issues, the contract of agreement / appointment letter should be drafted carefully, and the termination should be based on that contract/ appointment order
4. Is the ID Act applicable to managerial staff?
Normally NO. A person having managerial powers cannot get any protection of ID Act. But he should be manager by functions and not by designation
From India, Kannur
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