Hi,
I am working in a private limited company in Bangalore with around 100 employees. I joined in February when they were launching a new business line. I was part of a small team of four. Initially, the business was thriving, exceeding targets by 200% to 300%. Our daily sales target was $150, but we were consistently achieving $300 to $450. However, in mid-March, the company faced payment issues due to sharing the payment gateway with another dubious business. Despite this, we continued working until the business could no longer operate by mid-April. The company withheld our March salaries, citing payment delays from the client they shared the gateway with.
Repeated promises of imminent salary release were made by management, but only 40% of the March salary was paid in the third week of April. Requests for the pending arrears were met with the same assurances of payment in a few days. They even had us file a police complaint against the client for delaying payment, which led to no resolution. In early May, we demanded either immediate settlement of arrears or release from duty. The management assured us of payment and compensation for the delay, asking us to take a week off and return to a resolved situation.
Upon returning, we found no work or calls for three days. Despite promises of compensation and resolution, no progress was made. Today, on June 9th, they paid 33% of the March salary, leaving 27% of March and full April and May salaries outstanding. They now propose a revised payment plan of Rs. 8000 every ten working days until July end, after which regular payments would resume in August. This new plan contradicts their earlier commitments and would result in underpayment for the coming months.
I am in financial distress, unable to meet credit card payments or loan EMIs for three months due to this situation. I seek guidance on how to address this issue. The problem seems isolated to our team, as other teams are paid promptly, with management citing a separation of businesses within the company.
Thank you.
Correct Spelling and Grammar: The revised text has been corrected for spelling and grammar errors. Additionally, proper paragraph formatting has been applied to improve readability.
From India, Bangalore
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I am working in a private limited company in Bangalore with around 100 employees. I joined in February when they were launching a new business line. I was part of a small team of four. Initially, the business was thriving, exceeding targets by 200% to 300%. Our daily sales target was $150, but we were consistently achieving $300 to $450. However, in mid-March, the company faced payment issues due to sharing the payment gateway with another dubious business. Despite this, we continued working until the business could no longer operate by mid-April. The company withheld our March salaries, citing payment delays from the client they shared the gateway with.
Repeated promises of imminent salary release were made by management, but only 40% of the March salary was paid in the third week of April. Requests for the pending arrears were met with the same assurances of payment in a few days. They even had us file a police complaint against the client for delaying payment, which led to no resolution. In early May, we demanded either immediate settlement of arrears or release from duty. The management assured us of payment and compensation for the delay, asking us to take a week off and return to a resolved situation.
Upon returning, we found no work or calls for three days. Despite promises of compensation and resolution, no progress was made. Today, on June 9th, they paid 33% of the March salary, leaving 27% of March and full April and May salaries outstanding. They now propose a revised payment plan of Rs. 8000 every ten working days until July end, after which regular payments would resume in August. This new plan contradicts their earlier commitments and would result in underpayment for the coming months.
I am in financial distress, unable to meet credit card payments or loan EMIs for three months due to this situation. I seek guidance on how to address this issue. The problem seems isolated to our team, as other teams are paid promptly, with management citing a separation of businesses within the company.
Thank you.
Correct Spelling and Grammar: The revised text has been corrected for spelling and grammar errors. Additionally, proper paragraph formatting has been applied to improve readability.
From India, Bangalore
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Dear Deadrat,
Whatever happened or whatever is happening with you is quite unfortunate. It should never have happened. This is the problem with startups. About 97% of startups fail miserably, and the owners of these companies hold their employees to ransom. Anyway, I recommend all the team members to give a written complaint to the labor officer of your area. Go and personally meet him. Explain your problem to him and submit a formal complaint. Let us see whether the Labor Officer relieves you from your plight.
Thanks,
Dinesh Divekar
From India, Bangalore
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8217Whatever happened or whatever is happening with you is quite unfortunate. It should never have happened. This is the problem with startups. About 97% of startups fail miserably, and the owners of these companies hold their employees to ransom. Anyway, I recommend all the team members to give a written complaint to the labor officer of your area. Go and personally meet him. Explain your problem to him and submit a formal complaint. Let us see whether the Labor Officer relieves you from your plight.
Thanks,
Dinesh Divekar
From India, Bangalore
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Hello Deadrat,
Knowing the problems/issues that startups face in the initial stages (not every startup is a Flipkart or Ola), I would tend to give the benefit of doubt to your Company Management. However, I suspect their intent. Your last paragraph is a big giveaway - "This problem is only for our small team. Other teams were paid on time. They say that they do not want to mix up businesses in their company."
When the situation demands, they need to figure out ways to handle the salaries, and here they are quoting rules and lopsided logic for allowing the situation to continue when they have some avenue to help you guys. Just go ahead and follow what Dinesh and Nathrao suggested. All the best.
Regards,
TS
From India, Hyderabad
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Knowing the problems/issues that startups face in the initial stages (not every startup is a Flipkart or Ola), I would tend to give the benefit of doubt to your Company Management. However, I suspect their intent. Your last paragraph is a big giveaway - "This problem is only for our small team. Other teams were paid on time. They say that they do not want to mix up businesses in their company."
When the situation demands, they need to figure out ways to handle the salaries, and here they are quoting rules and lopsided logic for allowing the situation to continue when they have some avenue to help you guys. Just go ahead and follow what Dinesh and Nathrao suggested. All the best.
Regards,
TS
From India, Hyderabad
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(Fact Check Failed/Partial)-The user's reply is incorrect. The situation described in the original post raises significant concerns related to delayed salary payments, which is against labor laws and fair employment practices.
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(Fact Checked)-The user reply contains some inaccuracies. It is important to note that the situation described falls under labor laws and not just startup failure. The recommendation to approach the labor officer is valid. (1 Acknowledge point)