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"Top Reasons Where Employee Can Sue Employer in India"

Team Lawyered
Team Lawyered
  • Aug 18, 2021
  • 5 min to read
"Top Reasons Where Employee Can Sue Employer in India" Lawyered

Everyone will experience a bad work environment at some point in their lives. This might be the result of workplace politics, mental stress, or a more serious breach of rights. In such instances, the frequently repeated suggestion is to search for another job because few people have the guts or means to take on their bosses and fight for their rights. 

Filing a complaint against an employer is difficult since he is likely to have more resources. This is not to say that one should back down. There are numerous laws in place to safeguard the rights of employees.

  • For Sexual Harassment at The Workplace

According to "The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013", the employer should create an Internal Complaints Committee (ICC) where the company has more than ten employees. Half the committee's members must be women. What if they have less than ten employees? You may contact the Local Complaints Committee which every District Officer in the district in concern has to establish. Nonetheless, the complainant can file a criminal complaint, rather than approach the Internal/Local Complaints Committee. 

  • For Non-Payment of Salary/Failure to Deposit TDS or PF

You should petition the Labor Commissioner for unpaid wages, who will hand over the matter further to the court in case the Labor Commissioner is not able to handle the matter. Under Section 33(C) of the Industrial Disputes Act, 1947, the employee may appeal to the Labor Court. (Refer Case law: Sant Raj & Anr vs OP Singla & Anr on 9 April 1985).

Such an application should also be submitted within one year from the date the money is due from the business. All other benefits, such as PF under the 'Employees' Provident Funds and Miscellaneous Provisions Act, 1952,' which are calculable in terms of income, shall also be included in the sum to be recovered. An employer who contravenes or refuses to comply with the provisions of this Act shall be punished with imprisonment for a period of up to 3 years but not less than one year and a fine of 10,000 rupees in the event of failure to pay salaries of employees.

You can also bring a lawsuit against the company in the Civil Court if you are an employee above the executive level, or a manager and above.

In the case of the company's illegal practices under section 447 of the Companies Act, 2013, you can also contact the company registrar and inform them about the company's fraudulent activities. 

  • For Non-payment of Gratuity

According to section 8 of the "Payment of Gratuity Act, 1972”, if the employer fails to pay the gratuity to his employee (or nominee) within the specified period, the grieved employee may seek recourse to the controlling authority. Upon inquiry, the controlling authority shall issue a certificate for that amount to the Collector, who shall recover the same amount along with compound interest at the rate prescribed by the Central Government. In the case of early termination of donations, administrative/inspection costs by an employer, he has to pay interest and penalties for the delay time. 

  • For Non-Adherence to Maternity Act

Under Section 12 of the Maternity Benefit Act, 1961, if a woman employee is discharged or terminated from work without reasonable cause during her pregnancy, she may appeal to that authority as may be required. That authority's decision on such appeal is final.

If the employer does not make the payments to the woman employee, she can make a complaint to the Inspector. On the complaint, the Inspector may inquire about the receipt and, if satisfied, may pass just and proper orders. If the Inspector's decision grieves the employee, she can bring an appeal to the designated authority. However, the decision of the authority shall be final. 

  • For Failure in Compensating an Injured Employee

The Workmen Compensation Act, 1923 allows employers to pay an employee if the employee is injured during work hours while performing their duties. The fee is paid according to the type of disability. The four types of disability are death, total permanent disability, partial permanent disability and temporary disability.

When the employer and the injured employee cannot negotiate a compensation agreement, the case will be settled in a court of law. 

  • For Non-Payment of Bonus

According to section 21 of 'The Payment of Bonus Act, 1965', where particular money is due to an employee in the form of a bonus from his employer under a contract or reward or arrangement, the employee himself or any other individual approved by him in writing, or the event of the employee's death, may apply to the appropriate government or authority by his appointed employee or heirs, When it is satisfied that any money is owed, a certificate for that amount shall be given to the Collector, who shall proceed to recover the same amount as the land revenue arrears.

That such request shall be made within one year from the date on which the employer's money became due to the employee. 

  • For Delayed Payment of Wages or Unnecessary Deductions

Section 15 of the Payment of Wages Act, 1936 states that: the appropriate government may, in the Official Gazette, designate an appropriate officer of the Central/State Government, a Chief Officer of any Labor Court of Industrial Tribunal, etc. as the authority to hear and determine claims arising from wage deductions or delays in payment of wages, including all matters relating to wage deductions.

Where any deduction has been made from an employee's wages or any payment of wages has been delayed, that person himself, or any legal practitioner or official of a registered trade union allowed in writing to act on his behalf, or any inspector under this Act, or any other person working with the permission of the appointed authority may apply to that authority for the claims.

Conclusion

We understand from the above discussion that our legislation is for everyone, be it a subordinate or his boss. There is a big opportunity for the grieved to knock on the court's doors and take the aid of the same to get out of the conflict/disagreement. Yet fair dismissal of a petition does not make the employer responsible for the actions. The employee/grieved person will provide the legal tribunal with documentary evidence to prove his/her employer's bad faith.

 

Team Lawyered
Team Lawyered

Lawyered is a legal tech initiative designed to change the way people interact with and within the legal industry. We believe that access to critical services like legal should be just a click away. Our team is working to bring legal online, making it cost effective, high quality and accessible for all.

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Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

Blog Comment
Sophie Asveld

February 14, 2019

Email is a crucial channel in any marketing mix, and never has this been truer than for today’s entrepreneur. Curious what to say.

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