Consultancy_hr & Ir
Hr Consulting
+1 Other

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Hi All,
Greetings !!
I joined a startup firm as an HR Manager in the last week of August. And on 9th october we got a call from our seniors saying that they are going to shut down the firm on the same day. They promise us to give one month's salary in 2-3 days time; but now they aren't responding to our calls messages and none of the four employees has received any amount from them.
Also we haven't received any written communication about the company being shut down.
kindly help me with a solution to this problem, or suggest what kind of legal action can be taken against them?
Warm Regards.....
Lata Joshi

From India, Delhi
As HR Manager, unfortunately, you have NO remedy under Labour Law.
If the total strength of employees is less that 50, the Employer can close down the undertaking without assigning/justifying his reasons.
But the Closure Compensation stipulated under Industrial Disputes Act 1947 will have to be paid-unavoidably to "workmen" conforming to the definition under same law.
However unfortunate the situation is for you all, a reasonable solution is possible primarily through a dialogue and discussion and through Labour Law.
Whether Civil Law can entertain such a complaint, I do not know. But even if it does, it will be a costly and time consuming process.
This response is coming to you based on your inputs. If there are more facts we may want review the situation.
October 21, 2014

From India, Pune
You say it is a start up firm with 4 employees and hence I assume your salary to be 10000 - 15000.
If you have the offer letter and material evidence of you having come to work on all working days in October, you can legally claim your 1 month salary. However, I would advice you not to go for it.
It is not a small amount and you deserve it. Still, given the cumbersome legal procedures and time that you have to waste in court, it would be in your best interest that you forego this and take up a new job. Take this as your learning experience.

From India, Madras
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