What Should Be Done To Employee\'s Payments If The Company Is In Loss - CiteHR
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Hello, i run a small pharmaceutical marketing company. and i am running in loss for sometime now. so i have decided to stop the marketing. the same is informed to my people in a meeting and told them to find the best possible alternative. however i want to pay them all the financial benefits like their salary and gratiuity & any other as per applicable laws. i have mentioned one month notice period in the appointment letter to my employees. My question is - whether i should collect the resignation and settle their accounts or should i issue a letter for termination of service due to loss.
Please help me to communicate properly to my employees and do it smoothly. plz suggest the written communication to be done.
Thank you

It's really sad to know this situation . But am happy to hear your prospective . As am not sure of the reasons as how you reached here , but without blaming a particular identity , one of the best thing i found which you have done is that you have discussed this in a public meeting , as if you are true and conditions are really as such ,then your employees will surely try to understand ( But it will depend on the mode it was delivered )

Generally in this situation , all get frustrated, minds full of questions etc. One better suggestion to you will be to try to get in touch with your known employers, companies of same field and ask them to hire your employees 9 this work out will let you gain the trust of your employees and have positive thinking about you .You can also help them in getting their resume forwarded to other employers or have their interviews conducted at some better companies .

the only ethical and moral thing is that " United we stand " concept should be followed as if you follow the legal or formal ways then both sides will have their say and the final conclusion will be dispute , loss of faith and the loss of trust you have built in years . you know it takes years to build trust and less than seconds to break . Many times it also happens that competitors try to malign your reputation by various ways .

so looking over the current scenario i would suggest you the following :

First try to grab the leaders/influences of the departments: Have proper meting with them and tell them your situation honestly but do promise them some time you require to settle their account . ask them to formally resign and be in touch with them regarding settlement of their account . You can see if what best you can help them and get their life and your brand identity saved well .

Many Business move in dormant stage for a while as business cycle do affects every business and it's undenying fact .

Then you need to ask them to convince their teams and tell that you will be settling their account in a period of time as the ways like termination, retrenchment ( you can check your performers and non performers and judge accordingly ) etc . may work out for you for a while .

Hope my suggestions would work for you . I wish you success .



Thanks Raj for appreciating my reply and i wish that everyone should be safe, healthy and happy with cheers for his life, family and the environment . regards Arvi
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