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Private Limited Company Not Giving Joining Letter: Can I Take Action?

Nayagam P

Nayagam P P  |3908 Answers  |Ask -

Career Counsellor - Answered on Aug 08, 2024

Nayagam is a certified career counsellor and the founder of EduJob360.
He started his career as an HR professional and has over 10 years of experience in tutoring and mentoring students from Classes 8 to 12, helping them choose the right stream, course and college/university.
He also counsels students on how to prepare for entrance exams for getting admission into reputed universities /colleges for their graduate/postgraduate courses.
He has guided both fresh graduates and experienced professionals on how to write a resume, how to prepare for job interviews and how to negotiate their salary when joining a new job.
Nayagam has published an eBook, Professional Resume Writing Without Googling.
He has a postgraduate degree in human resources from Bhartiya Vidya Bhavan, Delhi, a postgraduate diploma in labour law from Madras University, a postgraduate diploma in school counselling from Symbiosis, Pune, and a certification in child psychology from Counsel India.
He has also completed his master’s degree in career counselling from ICCC-Mindler and Counsel, India.
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Kinu Question by Kinu on Aug 04, 2024Hindi
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Hello, sir is it any rule or act in india government that private limited company doesn't give me joining letter or confirmation latter since 8 month to take action against company? They didnt give me any letter and they terminated so it is possible to give action against company?

Ans: Kinu,

You have NOT mentioned (a) Nature of Industry/Company you worked with (b) what was your Designation/Your Nature of Work & (c) Why you were terminated/Reasons for Termination?

To move to Labour Court, you should have an Appointment Letter (or) Pay-Slips (or) Show-cause Notice (or) Termination Letter (or) any other Document Proof like PF/ESIC Account Number (if applicable to you) etc. to prove in the Labour Court that you had been working there for 8-months. If NOT, you cannot move to Labour Court.

My suggestion (based on my Experience & having worked in HR-Administration Department in Delhi/Muscat/Chennai) :

(a) It is better to move ahead with another job without moving to Labour Court against the Company.

(b) You can move to Labour Court if you have worked for more than 3-years and have incurred a heavy financial loss of PF (if not remitted by the Company to EPFO or Gratuity (if worked for 5-or-more years) or any other dues outstanding for more than a year.

(c) As you have worked just for 8-months, it is not at all good or advisable to move to labour court for your future.

(d) To the extent possible, avoid disputes with any Company you work with, why because, when you search for jobs with another company, most of the companies conduct 'Antecedent Verification' i.e. verifying about the candidates who have applied for the job in their company. They might call the HR Department/Current Reporting Seniors to know about the candidate and/or write mail to get their feedback.

(e) Let us assume, they do not conduct any 'Antecedent Verification' and you get offer from another company. The new employer will ask for copies of documents which might include your Appointment Letter, Copy of Latest Pay-Slips, Confirmation Letter, Relieving Letter, NO Dues Certificate etc. You will have to approach your current employer for some of the documents, especially Relieving Letter.

If you had not had good relationship with the Current Employer, it will be much difficult for you to get even a Relieving Letter from the past employer(s) & join a new company. Copy of which all documents will be demanded by new employer depends upon its HR Policy/Nature of Work.

(f) Also please note, if the new employer comes to know that you had moved to Labour Court against your past employer, current employer will start enquiring about the same from you and / or from your past employer. From then, problems will start for you from the current employer also which can be (some illustrative examples): Transferring you to some other department, Laying you Off, Withdrawing Increments/Bonus etc.

In future, when you join a new company, ask for an Appointment Letter (even if it is a small company).

I hope I have clarified your doubt(s).

All the BEST for Your Bright Future.

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I worked for a private PMC company with appointment letter later after four months they were unable to pay salary and assured us by mails and what's up messages that, they are having some financial problems and requested to continue and pending salaries would be released soon and later stopped taking calls, We have resigned but they have not settled our account and now again become active. What action can be taken.
Ans: It's unfortunate that you're facing this situation with your former employer. Gather all relevant documentation related to your employment, including your appointment letter, emails, WhatsApp messages, and any other communication regarding salary payments and promises made by the company. Having a record of these interactions will be crucial for any potential legal action. Reach out to the company via email or written correspondence to remind them of the outstanding salary payments and request immediate settlement of your dues. Clearly outline the amount owed, the period for which you worked without compensation, and any promises or assurances made by the company regarding payment. If the company fails to respond or refuses to settle your dues, consider seeking legal advice from a labor lawyer or legal aid organization. They can assess your situation, advise you on your rights and options, and help you take appropriate legal action to recover your unpaid wages. Depending on the jurisdiction and labor laws in your area, you may have the option to file a formal complaint or grievance with the relevant labor department or regulatory authority. Provide them with all relevant documentation and information about your case, and they may investigate the matter and take action against the company if warranted. If you see other employees are also affected by unpaid wages or mistreatment by the company, then consider organizing collectively to amplify your voices and increase pressure on the company to resolve the issue. This could involve forming a group, sharing information and resources, and coordinating efforts to seek redress through legal channels or public advocacy. Throughout this process, it's important to protect your rights and avoid taking any actions that could jeopardize your legal standing or future claims against the company. Keep records of all communications, consult with legal experts, and be prepared to assert your rights if necessary. Stay informed about any developments related to the company, including changes in ownership, financial status, or legal proceedings. This information may affect your ability to recover unpaid wages or seek other forms of recourse.

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Prof Suvasish Mukhopadhyay  |115 Answers  |Ask -

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Asked by Anonymous - Nov 14, 2024Hindi
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Dear sir, I have been working in pharma segment n I have a terrible experience to share almost 5–6 companies have not settle my genuine dues of salaries and expenses. Some are almost 5–8 yrs old n the latest one is almost 75 days old. Some have some special statements written on there appointment letters, which gives them freedom , and others seem to have no concerns at all. I cannot take legal action against them as a don't have so much money. In the latest episode, my company says that they cannot give me my full n final till the time stockist does not pays his dues to the company. In this regards, I want to inform you that 1 I have no dues on the stockist 2 I have returned all my property 3 companies settlement time is of 45 days 4 after fighting so long I have received one part as salary but expenses are still held they say that they will only settle my dues when the stockist pays his pending payments. 1 I have no dues certificate from all stockists 2 And my views on this is 1 I'm not in organization now, how am I responsibile for the old payments of my time, because it's responsibility of the current staff to follow up for his secondary n payments 2 party's due on company is around rs 46000 but stockist already has non sellable goods of rs 70000 in his shelf . 3 the current staff do not meet the stockist, help in liquidation of stocks or clearing payments. Kindly help me with your detailed view in how to get my ffs from this organization as I have 1 written several times on main with no proper response. 2 I have called many times to hr n concerned managers but they repeat same thing, ie payments of one stockist Kindly help me with solution to get my ffs from this n old pharma companies. Thanks Jasvinder singh
Ans: You need legal support. Please contact senior advocate Mr. Tanoj Joshi with my reference. Search about him in LINKEDIN.
He is a very good person and he won't charge you much if you give my reference. Please give me the update. Best of luck. MAY GOD BLESS YOU. Professor...........................:)

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Hello finance guru, I am 45 years old , with 2 kids. I live in a Tier-1 city with ~49 Crores of networth. This includes ~12 crores of investment in real estate (land and a flat at a prime location), ~34 crores in equity, ~1 Cr in Crypto and ~2 Cr in cash. I work in a pharmaceutical firm in an executive role and planning to retire in the next 1 year. My knowledge on finances is average and would like to seek your advise. I would like to generate ~2.5 lakhs per month for expenses from my savings and would like to double my networth in the next 7 years. Could you provide me help on the directions I can take to make this working?
Ans: Hello;

Deducting the real estate and crypto investments from your networth, we have 36 Cr.

You may invest 4 Cr each in 2 equity savings type mutual funds and 2 conservative hybrid debt oriented mutual funds.

If you do a 3% SWP from each of these funds you may expect a monthly payout of around 2.8 L (post-tax).

These funds generally yield 8-9% returns so they will continue to provide inflation adjusted income to you.(6% inflation rate considered)

Balance remains around 20 Cr, while 2 Cr may be retained as liquid fund for contingency requirement, the balance 18 Cr you may invest in combination of mutual funds, PMSs and AIFs.

As you enter retirement phase your focus should shift from "maximising returns" to "decent returns with moderate risk" since return of capital is more important than return on capital.

Happy Investing;
X: @mars_invest

*Investments in mutual funds are subject to market risks. Please read all scheme related documents carefully before investing.

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DISCLAIMER: The content of this post by the expert is the personal view of the rediffGURU. Investment in securities market are subject to market risks. Read all the related document carefully before investing. The securities quoted are for illustration only and are not recommendatory. Users are advised to pursue the information provided by the rediffGURU only as a source of information and as a point of reference and to rely on their own judgement when making a decision. RediffGURUS is an intermediary as per India's Information Technology Act.

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