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Query About Pending Payment To Absconding Employees As Per Wages Act? - CiteHR

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nmrao.in@gmail.com
Gud evening to all Cite HR members,
My question is in our organization some of our contract/permenant workers are left from the organization with out any communication.so we are not paid wages to them as per our internal policy.
In this case my question is whether it is legal or not?
How many years we kept their wages with us? as per payment of wages act under which section/Rule.
So I request you to please clarify the same to me.
With Regards,
Naga

From India, Hyderabad
Capt Anil Bahl
Any amount due to be paid to the contractor / Employees may be deposited in the account of the Maharashtra Labour welfare Fund.
who shall give you a receipt.
If and when the employee returns for collection the receipt may be handed over to Him/her for collection from this organisation.
The Employer Has discharged His legal obligation
The Bombay Labour Welfare Fund Act 1953
AB

From India, Mumbai
Sreeram70
38

Dear NM Rao, you have mixed up two different issues, ONE permanent employees leaving with out communication,, this must be treated separately, TWO Contract Employees leaving without intimation is not your concern, it is the head ache of the contractor you only need to communicate to the contractor about the absence and make him to reimburse with new man power., or else you can deduct the differential amount from the contractors bill (this must be as per the contract agreement). with regard to the permanent employees it forms your obligation to carry forward this amount till 3 years. or till it is claimed. which ever is earlier. Generally management will issue a show cause notice to the employees leaving with out intimation and subsequent to this management will issue absconding notice., and there after a deemed termination letter. all such correspondence must be secured in the office premises under proper control of HR. Regards, JSR
From India, Hyderabad
saswatabanerjee
2358

Payment of wages act and the state labour welfare acts taken together requires you to maintain a register of unpaid wages. After a period of 3 years, all unpaid wages is to be deposited with the labour welfare fund. The provisions and procedure vary state to state, so u need to check the relevant rules.
In computing unpaid wages, you can deduct any amount that the employee owes to you, including notice pay. In general, notice pay will be more than the unpaid wages. So unpaid wages would be nil or negative. You need to keep the records of this working for a period of 3 years as per payment of wages act. However, in view of companies act and income tax requirement, it is better to maintain the records for 8 years

From India, Mumbai
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