Hi: Need advice regarding the pain experienced by the current and ex-employees of the company. It is a US-based software company with has an Indian entity in Bengal. Employees have not been paid their regular salary for over 2 years. Currently over 6 months of pending salary. Certain valuable employees are paid regularly but rest of the employees are not paid even statutory dues are not paid. When there is a visit or inquiry by these agencies they are "settled". Gratuity and FFS is pending for employees who have left over 4 years. The management cites "financial distress" and says things will tide over soon, pay around 30% to 40% of salary and keep quiet. Employees who can leave, have left but in the current scenario, prospects are not good.
As employees are afraid of reprisals by the company, they have not lodged any major complaints. Ex-employees have lodged complaints and cases are "settled". As the CEO is a person of Indian origin and stays abroad, where Indian laws are not applicable to him. Complaints have been given to Labor, PF, and ESI, no response from them.
Except for a privileged few, everybody is fear of losing their job. The company is doing good in terms of service and receiving regular payments.
Please advise steps to address this problem.
From India, Kolkata
As employees are afraid of reprisals by the company, they have not lodged any major complaints. Ex-employees have lodged complaints and cases are "settled". As the CEO is a person of Indian origin and stays abroad, where Indian laws are not applicable to him. Complaints have been given to Labor, PF, and ESI, no response from them.
Except for a privileged few, everybody is fear of losing their job. The company is doing good in terms of service and receiving regular payments.
Please advise steps to address this problem.
From India, Kolkata
You need to follow up on the complaint made to Labour, PF & ESI authorities. Additionally threaten them with exposing them in the Indian as well as US media. Like NASSCOM in the US too there will be industry association try to approach them. Also send complaint to the registrar of companies stating deliberate disregard to the statutory obligations.
From India, Mumbai
1534From India, Mumbai
Every employer is liable for paying wages & salary on or before the specified dates mention in the payment of wages act.
You may follow-up with the Local Labour department, PF & ESIC officers to address the issue & take appropriate action.
It doesn't matter that CEO is in India or abroad, company is a separate entity & can be sued for its operations.
In every organization where ESIC, PF, Bonus, Gratuity ect act applicable, company authorize one person who is nominated as responsible for adherence of above act. Try to find-out in your organization that who is nominated/responsible for the same.
It can be found on the notice board of the organization,
If no one is appointed, then the person who is signing the Appointment letter & Relieving letter deemed to be responsible for adherence of above acts.
You may reach us for further consultation @
Regards
HR Revolution Services
Ghaziabad
From India, New Delhi
You may follow-up with the Local Labour department, PF & ESIC officers to address the issue & take appropriate action.
It doesn't matter that CEO is in India or abroad, company is a separate entity & can be sued for its operations.
In every organization where ESIC, PF, Bonus, Gratuity ect act applicable, company authorize one person who is nominated as responsible for adherence of above act. Try to find-out in your organization that who is nominated/responsible for the same.
It can be found on the notice board of the organization,
If no one is appointed, then the person who is signing the Appointment letter & Relieving letter deemed to be responsible for adherence of above acts.
You may reach us for further consultation @
Regards
HR Revolution Services
Ghaziabad
From India, New Delhi
Non-payment of salary is a serious offence under the Payment of wages Act, 1936 and a major breach of the contract of employment on the part of the employer. Those employees with a monthly gross salary of Rs.24000/= and below can file a claim either individually or jointly or through their trade union or the inspector under the Act u/s 15(1) of the Act before the Deputy Labor Commissioner for the area seeking an order directing the employer to pay the unpaid salary with a fine of 10 times of the amount due.
When, even less educated workmen can boldly knock at the doors of the State authorities against such unfair labor practices to get redress then and there, it is a pity that highly educated soft ware employees remain moot and scared of reprisals by the employer.
From India, Salem
When, even less educated workmen can boldly knock at the doors of the State authorities against such unfair labor practices to get redress then and there, it is a pity that highly educated soft ware employees remain moot and scared of reprisals by the employer.
From India, Salem
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