Hi,
We work in a pvt. ltd. company in Hyderabad.(aproxx. 20 people). Our employer has delayed salary payment by more than 3 months on grounds of lack of funds and no revenue coming in.
Even those who left the company, due to non-payment, there dues were not cleared. And those of us who are left here, are not able to decide what to do, because , if we leave the company, there is a fear, that our salary for about 2-3 months would never be paid.
On inquiring from the CEO about the whole situation, he says that whole situation would be better from next month, but this he has been saying for last 2 months and the situation doesnot seem to be improving.
What should we do? Please suggest
From India, Hyderabad
1We work in a pvt. ltd. company in Hyderabad.(aproxx. 20 people). Our employer has delayed salary payment by more than 3 months on grounds of lack of funds and no revenue coming in.
Even those who left the company, due to non-payment, there dues were not cleared. And those of us who are left here, are not able to decide what to do, because , if we leave the company, there is a fear, that our salary for about 2-3 months would never be paid.
On inquiring from the CEO about the whole situation, he says that whole situation would be better from next month, but this he has been saying for last 2 months and the situation doesnot seem to be improving.
What should we do? Please suggest
From India, Hyderabad
Dear Abhijeet
There are always ups and downs in the Business, it is part and parcel of Business Life Cycle.
As I understood your company team is very small, hence your CEO might be directly interacting with you for salary delay and assuring you for better future in coming months, but off course again it is purely depend on revenue generation for survival.
Your CEO needs you in difficult situation, because business is driven by employees and employees are key for running business, hence CEO might be motivating you to stay there and you will get the pending salaries.
Now you have two choices (1) stay with the current company and look for better future or (2) If you do not see any future in current company, try outside and give reference of current CEO, as everyone having equal chance of opportunities.
If you have decided to move ahead with new opportunities with new company then you may forgo 2 months salary and think for future career growth and better prospects. (Pending salary you may request to CEO based on his improving situations, keep your good relations so that he will keep your cooperation in mind)
BrainLight HR Solutions
From India, Mumbai
There are always ups and downs in the Business, it is part and parcel of Business Life Cycle.
As I understood your company team is very small, hence your CEO might be directly interacting with you for salary delay and assuring you for better future in coming months, but off course again it is purely depend on revenue generation for survival.
Your CEO needs you in difficult situation, because business is driven by employees and employees are key for running business, hence CEO might be motivating you to stay there and you will get the pending salaries.
Now you have two choices (1) stay with the current company and look for better future or (2) If you do not see any future in current company, try outside and give reference of current CEO, as everyone having equal chance of opportunities.
If you have decided to move ahead with new opportunities with new company then you may forgo 2 months salary and think for future career growth and better prospects. (Pending salary you may request to CEO based on his improving situations, keep your good relations so that he will keep your cooperation in mind)
BrainLight HR Solutions
From India, Mumbai
Ask him to pay your dues or else you'd sue him.
Business cycle can never be an excuse for not paying salaries for months.
Possibly, he is waiting for you to get tired and leave and then your dues too vanish just as those of others who left before you.
From India, Delhi
Business cycle can never be an excuse for not paying salaries for months.
Possibly, he is waiting for you to get tired and leave and then your dues too vanish just as those of others who left before you.
From India, Delhi
Non-payment of salaries to the employees is an offence. The employer can shut down his/ her business if the revenue can not be generated, but the source of livelihood of people hired for the business can not be denied.
You may consider sending a legal notice to your employer.
From India, Delhi
You may consider sending a legal notice to your employer.
From India, Delhi
Yes, this is what we are thinking. Since, most of had good CV/profile, finding a new job would not be a challenge.
Can anyone please guide us on the legal procedure. Is there some government body, whom we can contact. How much time it might take. What might be its effect...
Any reference to previous cases..
Also, one more query..what happens in the case company is declared bankrupt ? Doesn't the Owners/Founders have to clear the dues from their personal income from other sources. What if they close this company and just open a new one ?
From India, Hyderabad
Can anyone please guide us on the legal procedure. Is there some government body, whom we can contact. How much time it might take. What might be its effect...
Any reference to previous cases..
Also, one more query..what happens in the case company is declared bankrupt ? Doesn't the Owners/Founders have to clear the dues from their personal income from other sources. What if they close this company and just open a new one ?
From India, Hyderabad
Have a word with him. Let him know you are willing to take the extreme step if need be.
Most likely, once he realizes you are not going to let him get away with not paying your dues, he would pay the amount.
If he still dilly dallies or gives you some sob story or an assurance (next week, month, year etc), send him a notice stating when you started the job, for how many months you have not got the salary and requesting him to clear your dues within 15 days else you will be forced to take legal option. Attach a copy of your appointment letter. Give him the letter and ask him to receive a copy (i.e. keep a copy of the notice with you with his signature saying received on this date).
If he refuses to accept the letter and sign a copy, send him the letter through registered post and keep the receipt of the registry. In 90% of the cases, this much would be enough.
In the meantime, talk to a lawyer. Tell him everything but don't ask him to do anything as yet. Just get the information.
If he doesn't pay even after 15 days or receipt of the letter, talk to the lawyer again and ask him to sue your boss.
From India, Delhi
Most likely, once he realizes you are not going to let him get away with not paying your dues, he would pay the amount.
If he still dilly dallies or gives you some sob story or an assurance (next week, month, year etc), send him a notice stating when you started the job, for how many months you have not got the salary and requesting him to clear your dues within 15 days else you will be forced to take legal option. Attach a copy of your appointment letter. Give him the letter and ask him to receive a copy (i.e. keep a copy of the notice with you with his signature saying received on this date).
If he refuses to accept the letter and sign a copy, send him the letter through registered post and keep the receipt of the registry. In 90% of the cases, this much would be enough.
In the meantime, talk to a lawyer. Tell him everything but don't ask him to do anything as yet. Just get the information.
If he doesn't pay even after 15 days or receipt of the letter, talk to the lawyer again and ask him to sue your boss.
From India, Delhi
Declaring a company bankrupt is such a lengthy legal process, for a company of 20 people, your boss would find it much easier to pay salaries instead of trying to get himself declared bankrupt.
From India, Delhi
From India, Delhi
Hi,
The situation is precarious. you should have in mind the case of KFA which seems akin to that of yours except that the KFA is a huge organisation as compared to that of yours.
Better look forward to a change and pursue for release of payments due to you under provisions of the Payment of Wages Act.
Regards
S.K.Johri
From India, Delhi
The situation is precarious. you should have in mind the case of KFA which seems akin to that of yours except that the KFA is a huge organisation as compared to that of yours.
Better look forward to a change and pursue for release of payments due to you under provisions of the Payment of Wages Act.
Regards
S.K.Johri
From India, Delhi
You could demand for the denied payment from employer through a notice and upon a negative reply file a claim petition under payment of wages Act either before the Authority under Payment of wages Act or Labour Court. SINCE YOU ARE STILL WITH THE COMPANY YOU MAY ALSO FILE A COMPLAINT BEFORE ASSISTANT LABOUR COMMISSIONER/ LABOUR INSPECTOR OR FACTORIES INSPECTOR IF YOUR FIRM IS A FACTORY AND REQUEST TO INTERVENE OR TO FILE A CLAIM ON BEHALF OF THE WORKERS.
From India, Thrissur
From India, Thrissur
Here are few suggestions you may interested in :
1 ) Are they holding the complete salary or part of the salary........ You may best request for the payment of part of the salary or basic pay and rest when the company comes to the position of paying the whole salary....
2 ) Employees together may come to an understanding with the management and let the management hold you salaries and consider it as investment and and when it is paid back, it shall be paid back with the interest at the bank rate........ or interest you both decide at.........
3 ) And with the due benefits, letting the company holding your pays, company must always protect the employees and assure for the future employment guarantee either for a specific period of benefit as an ex employee to join back if interest..........
Hope now you got the idea of demands where employee can extract the benefits out of situation making it win-win for both....... What ever the adjustments you agree upon to....... it shall be in "writing with authentication".........
Wish you all the success.........
From India, Bangalore
1 ) Are they holding the complete salary or part of the salary........ You may best request for the payment of part of the salary or basic pay and rest when the company comes to the position of paying the whole salary....
2 ) Employees together may come to an understanding with the management and let the management hold you salaries and consider it as investment and and when it is paid back, it shall be paid back with the interest at the bank rate........ or interest you both decide at.........
3 ) And with the due benefits, letting the company holding your pays, company must always protect the employees and assure for the future employment guarantee either for a specific period of benefit as an ex employee to join back if interest..........
Hope now you got the idea of demands where employee can extract the benefits out of situation making it win-win for both....... What ever the adjustments you agree upon to....... it shall be in "writing with authentication".........
Wish you all the success.........
From India, Bangalore
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