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Sec 447 of Industrial Act
Question
Respected members
Please provide your valuable advice on:-
Whether proceeding can be initiated against a company u/s 447 of companies act for not paying earned wages, notice pay, leave encashment etc while terminating a permanent employee.
Thanks in anticipation.
Answer ( 1 )
Section 447 of the Companies Act is not related to the non-payment of wages, notice pay, or leave encashment. Section 447 deals with the punishment for fraud, and it is unlikely to be applicable in the context of non-payment of employment-related dues. In the case of non-payment of earned wages, notice pay, leave encashment, or other employment-related dues by a company to a terminated permanent employee, the employees have the option to file a complaint or a claim with the appropriate labor court depending upon the fact that the employer comes under the purview of Labour court jurisdiction. Meanwhile, the employee may also have the option to pursue legal action through a civil court to recover the unpaid dues from the employer.