Dinesh Divekar
Business Mentor, Consultant And Trainer
Insolvency N Gst Professional
Labour Law Advocate
Hr, Administration & Law
+2 Others

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Hello seniors, I want to know that what action can an employee take if the company didn’t paid the salaries of employees and now the company is closed.
From India, Noida
Dear Mini,

Dr Vijay Mallya, in their miniature form, exist anywhere and everywhere. However, closure of the company cannot be the grounds for non-payment of wages to the employees.

As a first step, all the employees come together and give your submission to the labour officer of your area. Let us see how labour officer solves the problem. If he does not do anything, all of you come together and make a protest in front of MD's house. Call TV crew of News 9 and let them give wide publicity. Make a protest only when they are free to do the shooting. You may feel that this is a stupid option however, while proposing this, let me tell you that this is a far more powerful option. Entire government machinery was slack till the media did not take up the matter of Dr Vijay Mallya. Now all of sudden, court has woken up, Enforcement Directorate (ED) has woken up and so on. Therefore, pressure through media is important.

If nothing works, then you may lodge FIR in police station. Law will take its own course thereafter.

In India, even Supreme Court has ruled that individual has to fight for the justice or for his rights. Therefore, do not be gullible enough to think that without fighting things will go in your favour.


Dinesh Divekar

From India, Bangalore
Employees can join hands and approach Labour officer.
Section 33 C(2) of the Industrial Dispute Act, 1947 may be referred in this connection
They can send a joint legal notice to company owners/Board of Directors.
Publicity as suggested above can move mountains.
Whether police will entertain an FIR in such cases is open to question.(unless it is a question of cheating and/or fraud)

From India, Pune
Shri Dineshji has rightly stated the steps to be taken in certain situations to get result. The Bankers to whom VM had given Personal Surety/Guarantee says they are helpless to recover debt amount immediately unlike in the case of loans given to common people. WONDERFUL & AMZING.
It is said that India is lagging behind 10-20 yrs. in some of the Sectors; but when we consider those in higher up in Govt., Banks, PSU, Judiciary etc., doing malpractices to cheat peoples money; one wonders whether there is RULE OF LAW in our Country to protect people as guaranteed by our Constitution. Many politicians creates problems for the people in the name of Religion, Beef etc., whereas what people need is financial measures, support, Health, Education, Good Road, Sanitation, Housing, check Black money, implement Welfare measures etc.,

From India, Mumbai
If you fall u/s S2(e) of the Payment of Wages Act, 1936, you can approach the labour enforcement officer for taking necessary action. If you did not come under the definition of the employee under the above act, you can approach civil court for suitable remedy.
.....Satori S.

From India, Coimbatore
Depending on the nature of your employment as well as company, you can approach appropriate forum/ court under S&E Act, ID Act or Payment of Wages Act whichever is applicable.
Please consult a lawyer with documents (appointment letter, salary slip etc) for better legal advice.
Check www.labourlawhub.com for more information.

From India, Kolkata
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