Legal Question in Employment Law in India

Hi, I would like to get your opinion on following situation:

I am the sole proprietor of a company, had taken one person in 1986. There was no formal appointement letter issued or any agreement exchanged but just on verbal communication, the person started working. In 1987, he requested that he would like to apply at other jobs, so, if I can issue a certificate showing his experience. I did the same on good faith. He was continuing working and again in 1997 he requested the same and I issued similar certificate saying he is working in the company mentioning the salary at that time. Till 2002 he received the salary signing in voucher. From 2002 onward, he was irregular at service, working for just 1-2 hour and demanded salary that I couldn't provide. So I said, I can give you as and when I will have collection, if you want you can continue, else you can leave. But the person didn't leave and he used to take money as and when I could give him. Now at 2010, I have verbally told him not to continue work as I am old enough to continue work.

But now the person is demanding that he has dues from 2002 onward based on a salary determined by him(which was not agrreed anytime). Though he is saying that he has received money during this period(2002-2010), but his claim as per the salary as determined by him should be paid. Now I have following question:

1. Since there was no formal appointment letter given to him anytime, is it my obligation to give him any termination letter? The only documents he has are the 2 certificates issues in 1987 and 1997 showing that he is working there and he is demanding that he is a permanent employee and stil in service till he gets a formal termination letter.

2. Can he claim any specific salary or bonus or increment per year? Since from 2002 onward he was effectively working 1-2 hr per day, he was told verbally that he will be given money as and when posisble and he can continue if he wants. Since this is a company with 1-2 persons at max, is it bound by any law for any salary ?

3. What should be next step to get rid of him without being illegal.


Asked on 6/20/10, 12:37 pm

1 Answer from Attorneys
Adv.Sunita Lad Mayank Industrial Services

Salary laws of applicable irrespective of the number of employees. He cannot claim any specific salary or bonus for each year. However he can claim payment as per minimum wages. Salary determined by the employee is of no consequences. In case if you have vouchers signed by the employee for the payment received by him, the same can be used at a letter date in case if he creates any legal problem .Do not issue any termination letter in writing at this stage and you can continue with your stand for payment. Only mark him absent on the attendance register when he does not attend or mark the number of hours worked on the attendance register, which record will be useful in future.

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Answered on 6/21/10, 7:36 am


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