Anonymous
I received the appraisal letter on July 30, 2022, and the arrears amount for the four months is still unpaid by the company. During my discussion with HR regarding my resignation, they informed me that if I resign now, the arrears amount will be forfeited, and I will not receive any payment for it.

Is there any legal provision to address this situation?

From India, Mumbai
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Arrears of salary are a right of the employee. It is okay if your salary revision is not with retrospective effect but only with prospective effect. Once it is communicated as having an effect from a back date, the employee is entitled to get arrears of salary or what is called back wages. The employer cannot deny it on the grounds that the employee is leaving or has left the company. I think the HR person in your company is unaware of labor practices and the consequences of communications sent to employees.
From India, Kannur
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Anonymous
Hi Madhu,

Thanks for the reply.

I have discussed this with HR for the same. They told me the arrears amount is given to the employee who is continuing the job. It's not for those employees who are not continuing.

The company I work for is not employee-centric. They are sucking the employees' blood. They are trying to deduct as much as they can from FNF.

Do I need to file a complaint with the labor commissioner, or is there a legal law governing this issue?

Requesting you to please help me with the same.

From India, Mumbai
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About the legal bent of mind of any HR person, I don't doubt his/her competency to understand the proper implications of a legal stand adopted by the company on a particular issue, at times adversely affecting certain employees. On the contrary, such an HR person simply acts as a mouthpiece of the management for obvious reasons. Many employers try to be know-it-alls and are not receptive to the advice of their subordinates. That's how the poster got such an explanation.

The poster can take up the issue with the Labor Department or leave it according to his choice, depending on the possible retaliation of the company in matters like BGV.

From India, Salem
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KK!HR
1593

When there is a revision of wages and the new scales are enforced, the old scales are replaced, and the continued applicability of the old scales for a few (the resigned employees) cannot exist. Therefore, they too are entitled to the revised scale for the period of service. However, there are numerous organizations (both in the public and private sectors) that engage in such negative practices.
From India, Mumbai
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Same issue faced by me, Is their any legal obligation please share, because it is not a right practice
From India, Mumbai
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I understand that your company is not paying your arrears amount and is threatening to withhold it if you resign. This is a common tactic used by companies to prevent employees from resigning. However, it is important to know that your employer is not legally allowed to withhold your salary or other dues.

The Payment of Wages Act, 1936, states that an employer must pay an employee their full salary, including arrears, within 15 days of the end of the month. If an employer fails to pay an employee their salary on time, they can be fined or imprisoned.

In your case, the arrears amount is due to you from July 2022. This means that your employer has already missed the deadline for payment. You can, therefore, file a complaint with the Labour Department or the Industrial Court. You can also take legal action against your employer.

Here are some steps you can take to get your arrears amount:

Talk to your HR department again and explain that you are willing to resign, but only if you are paid your arrears amount in full. If your HR department is not willing to pay you, you can file a complaint with the Labour Department. The Labour Department will investigate your complaint and take action against your employer if they find that they have violated the law. You can also take legal action against your employer. You will need to file a case in the Industrial Court. The Industrial Court will hear your case and decide whether your employer is liable to pay you your arrears amount. It is important to note that it may take some time to get your arrears amount, even if you take legal action. However, it is important to stand up for your rights and demand that you are paid what you are owed. I hope this helps. Let me know if you have any other questions.

From India, Dombivali
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