One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr. X returned to India from abroad in November and wanted to pursue a career in IT support. Through his father’s connection, he joined XYZ Pvt Ltd in City A as an unofficial trainee. For several months, Mr. X worked regular hours from 8 AM to 6 PM, learning the trade and contributing to company operations. When he approached the management asking for official employment papers and proper salary, the company immediately terminated his training. Mr. X had relocated to City A, incurred living expenses, and invested months of unpaid work expecting official employment. The company’s sudden termination left him in financial distress and damaged his career prospects, constituting unfair labor practices and potential fraud.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

• Document all communications, work assignments, and promises made by the employer
• File a complaint with the labor department for unfair termination and wage theft
• Seek compensation for unpaid wages and relocation expenses incurred

Applicable Sections of Law

This case involves violations under the Bharatiya Nyaya Sanhita (BNS) including Section 318 (cheating), Section 351 (criminal intimidation), and provisions related to unfair labor practices. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), procedural aspects for filing complaints and evidence collection are covered. The Industrial Disputes Act and Payment of Wages Act also apply, providing remedies for unpaid wages and unfair termination. Contract labor regulations may also be invoked if the training arrangement constituted disguised employment.

If You Are the Complainant

• File a formal complaint with the labor commissioner documenting the entire arrangement
• Gather evidence of work performed including emails, assignments, and witness testimonies
• Calculate exact financial losses including unpaid wages and relocation expenses
• Demand written explanation from the employer regarding termination reasons
• File criminal complaint for cheating if false promises were made

If You Are the Victim

• Immediately stop working and document the termination circumstances in writing
• Preserve all communication records including WhatsApp messages and emails
• Contact other trainees or employees who witnessed your work and promises made
• File complaint within limitation period to avoid losing legal remedies
• Seek interim compensation to cover immediate financial needs during legal proceedings

How the Police Behave in Such Cases

Police typically treat these as civil disputes initially and may be reluctant to register FIR. They often suggest approaching labor authorities first. However, if clear evidence of cheating or fraud exists, they are obligated to investigate. Police may attempt mediation between parties before formal investigation. Documentation and witness statements are crucial for police to take the matter seriously and proceed with criminal charges.

FAQs People Normally Have

Can unpaid training be legally challenged? Yes, if work is performed with expectation of employment, it constitutes disguised employment requiring compensation.

What if no written agreement exists? Oral agreements and conduct can establish employment relationship through evidence and witness testimonies.

How much compensation can be claimed? Compensation includes unpaid wages, relocation expenses, and damages for mental harassment and career loss.

Is criminal case possible? Yes, if employer made false promises with intent to deceive, it constitutes cheating under BNS.

What Evidence Is Required?

• Communication records including emails, WhatsApp messages, and call logs
• Work assignments, projects completed, and contribution to company operations
• Witness statements from colleagues and supervisors
• Proof of relocation expenses and living costs incurred
• Documentation of promises made regarding employment
• Bank statements showing financial impact
• Company attendance records or login credentials used

How Long Will the Investigation Take?

Labor department investigations typically take 3-6 months depending on complexity and evidence quality. Criminal investigations may take longer, around 6-12 months for completion. Civil remedies through labor tribunals can be faster, often resolved within 4-8 months. Timeline depends on employer cooperation, evidence availability, and case complexity. Interim relief may be available during proceedings.

Advocate Sudhir Rao, Supreme Court of India