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sajid_rasheed
33

All you HR Big Wigs and Payroll Administrators out there ! Roll up your sleeves and lets have a discussion - If an insolvent business cannot afford to pay employees, arrears of salary, redundancy payments, leave encashments etc. What is the next step for the empoyee to take and to whom should he be looking at for any help in this regards?.....and we are talking about companies based in UAE !!!
Waiting to hear from you.

From United Arab Emirates, Dubai
sanseli07
3

Ummmm interesting post sajid.

Businesses are failing. It can be a very rough world. And a very unfair one too.

Right now there is a domino effect in play and I'm afraid there are going to be more stories like these. Lots of businesses are going to shut down

I'm seeing some big wheeler dealers who are going to be lucky to get out with this situation..

generally one could amicabbly talk to the company and try to ensure that basic amounts are paid..
apart from this they could go to the labor (which then again takes quite a while ) and complain about non-fairness of the company to comply with payment of salaries to staff... here again I dont know whether they will get paid

some companies today are giving their employees floating holidays where they go for a period from 1-6 months and are given one month's salary for that.

others are paying them only for the current month, giving them a ticket to go back to their home country or giving them 2 months to change jobs and get a NOC

in these times the lawyers are the ones that are doing excellent business with companies either going into liquidation,filing cases of bankruptcy or filing cases on others fo payemnt of their dues..

either of the alternatives, people are going to get worried and frustrated if none of the above works...
even if it does what about most of the people here with loans, commitments, other mortgages.. what will they do and how will they survive..:(

families now even middle class are approaching charity or welfare organisations for help...sometimes even going to the consulate.... but then again its only moral support they receive out there ...they cannot be helped in monetary terms ....:(

Its going to take another 2-3 quarters more for things to start brightening once again. Until then I fear that things are going to worsen

Sandeep

From United Arab Emirates, Dubai
darrylrio
2

The redundancy payment due to each employee under the statutory redundancy payment scheme depends on his or her age and length of service (up to twenty years). This determines the number of weeks pay due, which is then subject to a limit on weekly pay.
The statutory redundancy payment is a lump-sum payment based on the pay of the employee. All eligible employees are entitled to:
  • Two weeks' pay (subject to a maximum of €600 per week or €31,200 per year) for every year of service over the age of 16 and
  • One further week's pay
Pay refers to your current normal weekly pay including average regular overtime and benefits-in-kind, but before tax and PRSI deductions, that is your gross pay.

From India, Ahmadabad
benteebs
With relative to the first post the same is happening in our company we started a pizza outlet and takeaway shop.we took up the business for a failing owner.then six to seven months down the line of business we could borrow money from other sources in order to cover the payroll burdens.Eventually the company accumulated outstanding salaries not paid compounded with current payroll burdens.However, the general manager decided to reduce work force and put SIX (6) workers on redundancy each worked in the company less than a year.their redundancy packages included one advance salary on basic pay,leave days and what ever was remaining from Backpays.but these money where not paid at the same time due to the economical reasons the company was undergoing some workers immediately amicabbly talked to the company and tried to ensure that basic amounts were paid.for those that needed money to sortout other immediate commitments at their homes got where given as per demand ofcourse on equitable basis.

now is it acceptable for what the company did in the above matters?it eventually cleared off all the payroll burderns for both workers who left and that where put on redundancy.

From Zambia, Nchelenge
Dinesh Divekar
7879

Dear members,

Originally the thread was raised in 2009 by a member who worked in UAE. With the latest reply from the member from Zambia, it has been revived.

In India, at the time of issue of the appointment letter, terms of separation of defined. In case if the employee is required to be removed, he/she is given notice for 1-2 months. Sometimes employers pay in lieu of the notice period. Therefore, what is referred in the thread as "redundancy pay" is referred as "notice period pay" in India.

If the workers are required to be removed en masse then it is called as retrenchment. Industrial Dispute Act, 1947 has defined what is retrenchment the procedure to execute the retrenchment.

However, the above discussion was only with respect to the law. From the management science point of view, insolvency in business is failure of the business strategy, business planning etc. An enterprise has to pass through rough weather, however, what the owners had done to anticipate the risks? Certain risks can be averted, certain risks cannot be averted but mitigated and going further certain risks can neither be averted, not mitigated but we have to just respond to the risks.

Most of the time, corporate decline is a result of the strategic failure. If the strategic plan is well in place, if the tools of the strategy are used properly, then it is possible to avoid workers' redundancy and payment to them!

Thanks,

Dinesh Divekar

From India, Bangalore
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