Salary not paid

I joined software company in August this year under ojt(on job training). CEO gave us agreement to all 12 members that training for 1 year and stipend 17k. We gave him individually 2.3 lakhs per person. Now after 3 months he didn't pay this month's salary and he told us he is in big loss he can't pay salary onwards . Then we asked him about our money he told to give us between 3 to 6 months. We got to know he already did that previously. He also cut our PF and ESI but when we asked to show he didn't show because he used that money. We went to police they also want to settle on that. He agrees to pay money with in 4 month but he is cutting around 1 lack from every person's money. Please tell us what to do now. If we file civil suit against him, how much time it will take. Because we have all documents and payslip with us .Thanks.

Asked on November 20, 2016 in agreement.
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2 Answer(s)

Hi, it all depends upon the contents of your training contract. Therefore one would be in a better position to advice you once he/she has read your training contract. As you may be aware all contracts now a days have a arbitration clause and therefore approaching the court directly before extinguishing alterante remedy available will be a futile attempt. Moreover, to approach with a suit is not as expedious as one may think and it quite time consuming with little or no scope of very urgent releif.

Therefore, in the premises it will be first apt to address him a joint letter laying out your case and seeking your dues and then proceed accordingy.

If you require any further assitance, you can always contact me and I will be happy to explain you in more detail.

Answered on November 22, 2016.
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Since there is an employment contract executed by the company, the adjudication will take place according to the agreed adjudication method i.e.

if the employer and employee have agreed to arbitration, an arbitrator will decide the case and

if employer –employee agree in the clause to approach the court, matter will be presented before the appropriate court by either party. An application in labour court can be made u/s 33(C)(3) of The Industrial Dispute Act, 1947 .

“Where any workman is entitled to receive from the employer any money or any benefit which is capable of being computed in terms of money and if any question arises as to the amount of money due or as to the amount at which such benefit should be computed, then the question may, subject to any rules that may be made under this Act, be decided by such Labour Court as may be specified in this behalf by the appropriate Government; within a period not exceeding three months:] Provided that where the presiding officer of a Labour Court considers it necessary or expedient so to do, he may, for reasons to be recorded in writing, extend such period by such further period as he may think fit.]”

Section 33(C)(3) of The Industrial Dispute Act, 1947

Answered on November 27, 2016.
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