If Organization is not paying you then what??

Hi All,

One of my friend who is working in Pune in XYZ co. she is facing a problem which I felt I should discuss with you all which will help her to decide what she should do.

My friend is working with a startup company. The company is facing a major financial crisis so they haven't paid any employee for past three to four months. Now she is finding very difficult to survive. Kindly suggest the right way to handle this situation.

Kindly contribute as much as possible.

Regards,
Seema Gopal

Dear Seema,

The whole thing depends on the relationship and trust the employee and Oraganisation has for each other.

Since, the Company is facing financial crisis employees can request for part payment of dues.

The best thing would be request the Organisation to pay an adhoc amount to all employees.

If the Company is not in a position to pay anything, then ask you friend to start looking for another job and on getting a job, to resign gracefully so that a very good and amicable relationship is maintained.

If your friend want his dues and is ready to take action, he can consult a Lawyer and approach the Court, but this depends on the situation and relationship your friend wish to maintain with the Company.

Regards,
SC

Hi SC,

Thanks for inputs.
But the problem is she is also an HR. Kindly suggest.

Regards,
Seema Gopal

Dear Seema,

If your friend is an HR then I think she has an additional responsibility of curing the mixed feelings which will be arising in the mind of other employees as well. ofcource they can come to the HR if they cant move to the management with problems.

I think going to the lawyer will not solve your problem bcoz the company is facing financial crisis so they have not been paying to their employees and it is not due to any other reason related to the exploitation of employees. Since the company has no option. But I am sure the company will not mind if you move out of it since they realize that they have sa problem & finally everyone works for bread & butter.

Then also if she doesnt want to move out since she may have some sort of attachment then she should be patient & observe if the company conditions can cure.

I think she needs to take the decision depending upon the situation & the company circumstances. I feel she can take her decision despite of her function & role as an HR. Finally HR professionals are also a part of the whole lot of employees working in other functions. And there s nothing to feel guilty if she moves out since the situation demands that.

Regards,
Pooja

Hi Pooja,

Thanks for the input. I will speak to her.

Regards,
Seema Gopal

Hi Pooja,

Thanks for the input. I will speak to her.

Regards,
Seema Gopal

Dear Seema,

Look there are three ways out:

1) Wait and Suffer hoping someday the fortunes will turn and she is going to be rewarded for her loyalty.

2) Start looking for other jobs and resign on getting a suitable offer, but majority of times the Company refuses to release or donot take it very kindly, and at times they simply donot pay the final dues. If your friend's company acts otherwise, I feel she is working in one of the most ethical companies in India. So, if she resigns she should be prepare to forego past benefits. If she gets it , then it is a bonus.

3) Go to Court. Honuorable Supreme Court has stated in a judgement that an employer who cannot pay Minimum Wages has no right to do business.

The above are the remedies availble. It is upto to your friend to follow anyone of them depending upon the situation and relation as I have said earlier. She is the best judge, and we can only advise and sympathise but it is she and only she who is facing all the hardships.One more thing, the difficulties faced due to these kind of situation does not increase or decrease because the perosn is HR. So, her position is same as any employee. I have seen in situations like these all employees leaving one after the other while with all difficulties the peronal driver of the MD stuck on out of love and loyalty.

Regards,
SC

Hi Seema,

What kind of company is it? Is it a limited company and having shareholders? If yes, what is the stake of share holders? What about the production? Is it going on or not? How many employees are there? How about the administrative costs? How's the company coping up? Have they got any loans from banks or financial institutions? What's actually wrong? They simply cannot stop production or close down or lay off the unit without proper permission from the Govt. Please let us have more details on this.

Regards,

PRADEEP