Hi all,
Greetings!
I joined a startup firm as an HR Manager in the last week of August. On 9th October, we received a call from our seniors informing us that they are going to shut down the firm on the same day. They promised to give us one month's salary within 2-3 days; however, they are now not responding to our calls and messages, and none of the four employees have received any payment from them. Additionally, we have not received any written communication about the company's closure.
Kindly help me with a solution to this problem or suggest what kind of legal action can be taken against them.
Warm regards,
Lata Joshi
From India, Delhi
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Greetings!
I joined a startup firm as an HR Manager in the last week of August. On 9th October, we received a call from our seniors informing us that they are going to shut down the firm on the same day. They promised to give us one month's salary within 2-3 days; however, they are now not responding to our calls and messages, and none of the four employees have received any payment from them. Additionally, we have not received any written communication about the company's closure.
Kindly help me with a solution to this problem or suggest what kind of legal action can be taken against them.
Warm regards,
Lata Joshi
From India, Delhi
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Hello,
As an HR Manager, unfortunately, you have no remedy under Labour Law. If the total strength of employees is less than 50, the employer can close down the undertaking without assigning or justifying reasons. However, the Closure Compensation stipulated under the Industrial Disputes Act 1947 will have to be paid unavoidably to "workmen" conforming to the definition under the same law.
However unfortunate the situation is for all of you, a reasonable solution is possible primarily through dialogue, discussion, and through Labour Law. Whether Civil Law can entertain such a complaint, I do not know. But even if it does, it will be a costly and time-consuming process.
This response is based on your inputs. If there are more facts we may want to review the situation.
Regards,
Samvedan
October 21, 2014
From India, Pune
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321As an HR Manager, unfortunately, you have no remedy under Labour Law. If the total strength of employees is less than 50, the employer can close down the undertaking without assigning or justifying reasons. However, the Closure Compensation stipulated under the Industrial Disputes Act 1947 will have to be paid unavoidably to "workmen" conforming to the definition under the same law.
However unfortunate the situation is for all of you, a reasonable solution is possible primarily through dialogue, discussion, and through Labour Law. Whether Civil Law can entertain such a complaint, I do not know. But even if it does, it will be a costly and time-consuming process.
This response is based on your inputs. If there are more facts we may want to review the situation.
Regards,
Samvedan
October 21, 2014
From India, Pune
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You say it is a start-up firm with 4 employees, and hence I assume your salary to be $10,000 - $15,000. If you have the offer letter and material evidence of your presence at work on all working days in October, you can legally claim your one-month salary. However, I would advise you not to pursue this. It is not a small amount, and you deserve it. Still, considering the cumbersome legal procedures and time that you would have to spend in court, it would be in your best interest to forgo this and seek a new job. Take this as a learning experience.
From India, Chennai
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From India, Chennai
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