Dear Seniors & Experts,
Can anyone guide me how to recover our legitimate dues (salaries and expenses) from our company? Detailed accoubt of events is as under:
1.
I was working as Zonal Marketing Manager in a private company manufacturing and selling welding consumables.
2.
- In the first week of September 2008, I was approached by one of it’s competitor company from Bangalore owned by one Mr. Thomas as chairman, who claimed:
- That they are a five year old manufacturing company of welding consumables.
- They were operating in southern India only and wanted to expand on all India.
- That they are poised for big expansion with investment of about 100 crore as well technical & financial collaboration with foreign partner/s.
- That they would also be starting manufacturing of special purpose machineries, metal powders, gas saving modules etc.
- In a nutshell, it was claimed that they will have complete solutions in welding.
He also offered better package and facilities.
3.
- Seeing this as a better opportunity, I joined the company as regional marketing manager in Feb 2009.
- Further, on the request of Mr. Thomas, I also suggested and recommended some of my known persons and so a team of seven people joined this company from all over India besides me.
- They all were issued appointment letters.
4.
- Soon after joining it, the company started faltering in providing necessary help & support.
- The product samples for demonstration were not available.
- Company could not supply the material for order citing some illogical reasoning and instead asked us to buy the material from market and effect supplies.
- Our payment of salaries and expenses too got uncertain and erratic.
5.
- After two months i.e. in April 2009, Mr. Thomas announced and informed us that that he has merged his company with a new company with head office at Hyderabad and that will be responsible for payment of our salaries and expenses.
- He also informed that new appointment letters on behalf of new company will be issued after some time and then we will have to resign from his company submit new joining letter in new entity.
- The new company is headed by one Mr. Babu as CEO.
- We were paid the salaries of Feb & March 2009 in April 2009 and of April 2009 in June 2009 by Mr. Babu after repetitive follow-up.
- Mr. Thomas became as Chief Technical Officer in the new company.
6.
- Thereafter, it was informed by Mr. Babu & Mr. Thomas during a meeting at Delhi that company was importing high capacity machines from abroad that would be operational after about six months.
- For this purpose, the company was arranging loan through banks. Till high capacity machines were imported, installed and operational, company could give very limited products line for selling.
- Also, as per them since certain statutory issues were to be addressed and no HR policy was in place, issuance of appointment letters in new company would take some time and till such time they would arrange and pay salaries & expenses in cash only.
- However, salaries of May, June & July were not paid. The reasons being given was that certain statutory requirements were still to be obtained hence they could not issue appointment letter and also pay the salaries. Once these requirements were in place all the dues would be paid.
7.
- But on 25th July 2009 Mr. Thomas informed through e-mail that they were closing the marketing operations with immediate effect and asked everyone to submit details of their dues (whereas, as per appointment letter earlier issued by Mr. Thomas, one month notice of termination was required from either side).
- He however did not mention that services were being terminated or we were being relieved from services.
- Accordingly, we sent him details of our due salaries and expenses etc.
8.
- Since then, they have been delay-dallying payment of our dues with one pretext or the other.
- In the last two months, I have sent numerous emails and called up both the persons a no. of times.
- Every time they come up with some excuse and postpone the payment.
- In the last week of August 2009, Mr. Babu informed me that certain internal unattended issues were there that he would clear within 3-4 days and then he would pay.
- After that one or the other excuses every time. Either they were out of station or busy in some meetings.
- They are just saying that they will soon pay up without any concrete answer.
- Now they are trying to shift the onus on each other.
- Mr. Thomas says that he has closed his company and merged with new company with Mr. Babu as CEO, so he is not liable to pay us and that we should ask for and follow up for our payment from Mr. Babu as our payment liability was on Mr. Babu now.
- But Mr. Vasubabu says that he has not issued any appointment letters to us and never promised anything to us so why he should pay up? But still he would arrange to pay for which we will have to wait.
- It is now more than two months of closing the marketing operations by them, but still no clear picture as to when we will be paid our salaries & expenses of May, June & July.
- I suppose we can also ask for one months notice pay as they announce closure of marketing operations without giving any notice?
9.
- Every one of us who joined this company was employed with one or the other company prior to joining here and came here on promises made by Mr. Thomas. - Now everyone is standing jobless with no sight of payment of legitimate salaries and expenses for the last five months.
- The last five months have caused immense mental agony and torture to each one of us as we all have family to support.
Further, the appointment letter initially issued by Mr. Thomas had one clause that if we leave their company (whether by termination or by resigning) we can not join any competitor for two years. What is the legal sanctity and implications of this clause. This way we shall remain either jobless for two years or work for them without asking for salaries?
Can anyone suggest any suitable remedies and ways for realizing our dues payment from the company? Please help!
From India, New Delhi
Can anyone guide me how to recover our legitimate dues (salaries and expenses) from our company? Detailed accoubt of events is as under:
1.
I was working as Zonal Marketing Manager in a private company manufacturing and selling welding consumables.
2.
- In the first week of September 2008, I was approached by one of it’s competitor company from Bangalore owned by one Mr. Thomas as chairman, who claimed:
- That they are a five year old manufacturing company of welding consumables.
- They were operating in southern India only and wanted to expand on all India.
- That they are poised for big expansion with investment of about 100 crore as well technical & financial collaboration with foreign partner/s.
- That they would also be starting manufacturing of special purpose machineries, metal powders, gas saving modules etc.
- In a nutshell, it was claimed that they will have complete solutions in welding.
He also offered better package and facilities.
3.
- Seeing this as a better opportunity, I joined the company as regional marketing manager in Feb 2009.
- Further, on the request of Mr. Thomas, I also suggested and recommended some of my known persons and so a team of seven people joined this company from all over India besides me.
- They all were issued appointment letters.
4.
- Soon after joining it, the company started faltering in providing necessary help & support.
- The product samples for demonstration were not available.
- Company could not supply the material for order citing some illogical reasoning and instead asked us to buy the material from market and effect supplies.
- Our payment of salaries and expenses too got uncertain and erratic.
5.
- After two months i.e. in April 2009, Mr. Thomas announced and informed us that that he has merged his company with a new company with head office at Hyderabad and that will be responsible for payment of our salaries and expenses.
- He also informed that new appointment letters on behalf of new company will be issued after some time and then we will have to resign from his company submit new joining letter in new entity.
- The new company is headed by one Mr. Babu as CEO.
- We were paid the salaries of Feb & March 2009 in April 2009 and of April 2009 in June 2009 by Mr. Babu after repetitive follow-up.
- Mr. Thomas became as Chief Technical Officer in the new company.
6.
- Thereafter, it was informed by Mr. Babu & Mr. Thomas during a meeting at Delhi that company was importing high capacity machines from abroad that would be operational after about six months.
- For this purpose, the company was arranging loan through banks. Till high capacity machines were imported, installed and operational, company could give very limited products line for selling.
- Also, as per them since certain statutory issues were to be addressed and no HR policy was in place, issuance of appointment letters in new company would take some time and till such time they would arrange and pay salaries & expenses in cash only.
- However, salaries of May, June & July were not paid. The reasons being given was that certain statutory requirements were still to be obtained hence they could not issue appointment letter and also pay the salaries. Once these requirements were in place all the dues would be paid.
7.
- But on 25th July 2009 Mr. Thomas informed through e-mail that they were closing the marketing operations with immediate effect and asked everyone to submit details of their dues (whereas, as per appointment letter earlier issued by Mr. Thomas, one month notice of termination was required from either side).
- He however did not mention that services were being terminated or we were being relieved from services.
- Accordingly, we sent him details of our due salaries and expenses etc.
8.
- Since then, they have been delay-dallying payment of our dues with one pretext or the other.
- In the last two months, I have sent numerous emails and called up both the persons a no. of times.
- Every time they come up with some excuse and postpone the payment.
- In the last week of August 2009, Mr. Babu informed me that certain internal unattended issues were there that he would clear within 3-4 days and then he would pay.
- After that one or the other excuses every time. Either they were out of station or busy in some meetings.
- They are just saying that they will soon pay up without any concrete answer.
- Now they are trying to shift the onus on each other.
- Mr. Thomas says that he has closed his company and merged with new company with Mr. Babu as CEO, so he is not liable to pay us and that we should ask for and follow up for our payment from Mr. Babu as our payment liability was on Mr. Babu now.
- But Mr. Vasubabu says that he has not issued any appointment letters to us and never promised anything to us so why he should pay up? But still he would arrange to pay for which we will have to wait.
- It is now more than two months of closing the marketing operations by them, but still no clear picture as to when we will be paid our salaries & expenses of May, June & July.
- I suppose we can also ask for one months notice pay as they announce closure of marketing operations without giving any notice?
9.
- Every one of us who joined this company was employed with one or the other company prior to joining here and came here on promises made by Mr. Thomas. - Now everyone is standing jobless with no sight of payment of legitimate salaries and expenses for the last five months.
- The last five months have caused immense mental agony and torture to each one of us as we all have family to support.
Further, the appointment letter initially issued by Mr. Thomas had one clause that if we leave their company (whether by termination or by resigning) we can not join any competitor for two years. What is the legal sanctity and implications of this clause. This way we shall remain either jobless for two years or work for them without asking for salaries?
Can anyone suggest any suitable remedies and ways for realizing our dues payment from the company? Please help!
From India, New Delhi
you need to go through the clauses in your offer/appointment letter first, so that planned legal action can be taken.
From India, New Delhi
From India, New Delhi
Since officially, no payment is made by the new company (related to Babu) Babu is legally not liable to pay. You should put pressure on Thomas to see that the payment is cleared.
Secondly since the original company (related to Thomas) is not there due to merge with another company and you were not issued any appointment letter from the new entity, the question of competitor does not arise (competitor of whom? competitor of a non -existant company). So you are free to join any company you like.
Regards
From India, Hyderabad
5Secondly since the original company (related to Thomas) is not there due to merge with another company and you were not issued any appointment letter from the new entity, the question of competitor does not arise (competitor of whom? competitor of a non -existant company). So you are free to join any company you like.
Regards
From India, Hyderabad
filing of civil suit for recovery of money (salary) and if u r not in the position of management, then u cud initiate prosecution proceedings for non-payment of wages in time under Shops & Establishments Act
From India, Tiruchchirappalli
From India, Tiruchchirappalli
you can join any other company and there is no legal complication in that. However to recover your money civil suit is the only option.
However to bulit a pressure Initially you shud file an police complaint with request for action against your employer and send a legal notice to both the employers .However clarity is required : thru wat instruments your second employer paid your salaries? in case its paid thru cheque or RTGS in your account you can even make him party also .
From India, Haryana
However to bulit a pressure Initially you shud file an police complaint with request for action against your employer and send a legal notice to both the employers .However clarity is required : thru wat instruments your second employer paid your salaries? in case its paid thru cheque or RTGS in your account you can even make him party also .
From India, Haryana
Mr. , welcome to the real world of fraud companies. You are not alone in this ship. Millions of our brother and sisters are looted and the career spoiled by such thugs.
Course of action:
1. File a Police complain immediate within the nearest police station of your company from where you received the last salary.
2. Have both ur past and current boss included in complain alogwith the Accounts department, HR department or any other person still working with them in position where decision matters for the company.
3. File a complain at your nearst labor court as well.
4. All effected people should file a complain jointly. And be ready to share the money jointly, as I doubt from your case that the company is a fraud and they would never pay the money in full.
5. Civil case would be required if above does not help.
there are other ways, send me a private message and I will guide you if you have guts in you...All the best.
regards
ukmitra
From Saudi Arabia, Riyadh
Dear Mr. U K Mitra,
I have gone through the details you have given & feel sorry of what has happened with you all.
According to me; first you all should file FIR in the local police station against Mr.Thomas & Mr.Babu citing all the details & evidenc as proof of your association any way with them.
Second you can also take local lawyers help & file legal case in the civil court for the dues.
Third you can also approach to Dy.Labour Commissioner / Labour Commissioner with proof of legal & FIR copy & one complaint letter to them. As per the Shops & Establishment Act, company is liable to pay the salary/ dues if any with proof of your employment.
Fourth locate the local association of welding consumables & you all should give one compliant & make pressure to black list the company from the market.
Fifth, you all should approach the local MLA in power & ask them to help you to recover the dues.
Sixth approach free local TV / Print media & give them the total details & create pressure.
Seventh search another job & join immediately.
Hope you will get your dues.
Thanks & Regards.
Rameshwar
From India, Visakhapatnam
I have gone through the details you have given & feel sorry of what has happened with you all.
According to me; first you all should file FIR in the local police station against Mr.Thomas & Mr.Babu citing all the details & evidenc as proof of your association any way with them.
Second you can also take local lawyers help & file legal case in the civil court for the dues.
Third you can also approach to Dy.Labour Commissioner / Labour Commissioner with proof of legal & FIR copy & one complaint letter to them. As per the Shops & Establishment Act, company is liable to pay the salary/ dues if any with proof of your employment.
Fourth locate the local association of welding consumables & you all should give one compliant & make pressure to black list the company from the market.
Fifth, you all should approach the local MLA in power & ask them to help you to recover the dues.
Sixth approach free local TV / Print media & give them the total details & create pressure.
Seventh search another job & join immediately.
Hope you will get your dues.
Thanks & Regards.
Rameshwar
From India, Visakhapatnam
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