Hi All, I am working for a pvt ltd software company for the past 1 year. Company used to pay the salary on 5th of every month. This month on 6th Nov, the CEO declares that the company cannot pay the salary of the employees for the month of Oct as the company is running through a bad phase. And would lay off jobs. Ques1: Is a Company legally permitted to do this? Ques2: What are the legal steps an employee can take. Regards, Atul
From India, Delhi
From India, Delhi
Legally an employer is expected to pay the salary not later than 7th day of the salary month if the total number of employees does not exceed 1000. Similarly, an employer employing more than 1000 employees can pay salary latest by 10th of the salary month. Failure to comply with this will be contravention of the provisions of the Payment of Wages Act, 1936. Non payment of salary shall also be viewed as offence on the part of employer for which the employees can sue the employer u/s 15 of the Payment of Wages Act. However, these laws are applicable only to employees/ workers as defined in the Act for which reference to salary is the criterion. Under Payment of Wages Act, one who gets salary of not more than Rs 10000 shall be considered as an employee. Regards, Madhu.T.K
From India, Kannur
4249From India, Kannur
Thanks Madhu for your prompt reply. 1) My salary is more than 30k, does this mean that I cannot sue my employer. 2) What in case, the company says they don't have money to pay 3) Till date, formally the employees are not yet communicated. Regards, Atul:?:
From India, Delhi
From India, Delhi
Dear Atul, Since your pay exceeds Rs 10000, you cannot find a way in labour departments. If there is any violation of contract, you have to find solution by yourself. Certainly, you can get help under civil procedure code. The verbal intimation of lay off shall be taken as an advance token against termination. By the time you get official letter, you can find another job. Regards, Madhu.T.K
From India, Kannur
From India, Kannur
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Salary of October to be paid from 24.10.2013 in Maharashtra.pdf