Facing Unpaid Salaries and a Tough Job Market: Should I Stay or Move On?

Dear All,

We have not been paid our salary for the past 2 months. Now that everyone is frustrated, almost all employees are quitting. The rest of the employees are coming just for the sake of coming.

The company is facing a bad financial crisis. We even doubt if we'll be paid in the future.

Should I quit now too? It's baseless working without pay and there's not much work. I got a new client for them, which means a lot of income from a single closure itself, but still, they aren't interested in going with them.

Please let me know your thoughts on whether to wait or quit. Now the market is also down! No recruitment anywhere.

Regards,
Arsha

Dear Arsha,

I would suggest, don't quit the job, but rather keep trying for a good opening. Yes, you can look for job opportunities. I understand from your post that the management is not going for any improvements in the business, so there is no point in staying. But do remember, don't quit without any offer. Wait for a good offer and then move on. "The smarter you plan, the faster you execute"... Keep rocking...

Best regards, [Your Name]

Hi friend,

I suggest that you don't quit the job at this time when we have fewer jobs available in the market. At least, you can mention that you are working at XYZ company to the interviewer. I understand that it is very difficult to survive without a salary.

You have one option, which is to wait for a better job or any job, and then you can quit. Have patience and a positive attitude :).

Your friend,
Pallavi

Hi,

It is best suggested not to quit. There is a downtrend in every industry worldwide. When you put in more effort during this period, the better the chances for you when the business picks up. Remember, it is all a cycle. The year 2000-2001 saw a great fall. Later, the whole world was doing better. Many companies were not paying promptly. But this is the time you can show your loyalty, provided you are not in a financial crisis to burn your fingers for the sake of the organization.

However, it is your personal decision to be taken.

Hi,

In my opinion, not to quit. Our company also paid us 2 months' pending salary. It's a business; sometimes it gains, sometimes it loses. Until you get a new opportunity, you should not quit.

Final decision is yours.

Dear Arsha,

There is a famous saying, "Love your job and not the organization, because we don't know when our organizations will stop loving us."

In your case, I trust things are really out of shape. Though the situation warrants you to move out without a second thought, see to it that you do so after getting a good job. Till such time, calmly wait. Things will automatically improve. If the organization where you are employed itself is not ready to capitalize on the opportunity, then we can't blame ourselves.

Best wishes for your new job search.

Regards,
K. Manikandan

Dear friend,

It is better to quit the job immediately and spend some time exploring new openings or checking with your known sources and friends. If an employer is unable to pay employees' salaries, they do not have the right to run the business. Time is valuable. If you have confidence, you can achieve anything. I believe it is time to rise and think differently.

You can consider accepting a lower salary in the same department, changing your nature of work and department, or enrolling in short-term courses during your period of unemployment. Learning a new language could also be beneficial for your current or future job prospects. Additionally, exploring new small business opportunities, taking a family trip to tourist destinations, and dedicating time to reflect alone can help you think innovatively.

"Those who see the invisible can do the impossible."

Thanks & Regards,
Laxminarayana.a
HR, Hyderabad

Dear Arsha,

First and foremost, I want to applaud you for your courage in airing your worries live on the net and being humble enough to ask for advice. That's a lovely thing.

Now, as you said that everybody is leaving and you haven't even received your pay for 2 months, that's a very troubling thought indeed. But there is one thing I want to ask you, Arsha:
- Do you love your job?
- Is this the line you see yourself in 5 years from now?
- Can you financially support yourself even if there is no pay 2 months from now?
- Are you getting emotionally drained from seeing the low morale of the other employees, or can you motivate yourself without any worries?

You know what, my friend, I have asked you these questions because each of us is a unique individual with our own goals, priorities, and other things that matter like finances and inner motivation.

It's very easy for everyone to give advice, but none of us put ourselves in your position. Only you have the power to decide what is best for you.

You have held on so far, and that's great. You've also shown that nothing stops you by getting the company a customer and doing them a huge good. Can you hold on for some time longer?

You hold the world in your hands, Arsha. Make the best use of that chance. If you have any questions, you can reach out to me. I'll try my best to answer you.

Take care and wish you all the best.

Regards,

Aveena

Hi Arsha,

I understand your pain, but this is not the right time to quit your job as the market is in pretty bad shape. I truly agree with all our friends, and I'm happy that all the ideas are in sync. So, try to explore new opportunities and choose the best one if you really wish to. In fact, this could be a management game to test the loyalty of the employees. I'm pretty sure they will release pending salaries once they feel their business is stable, as this is a temporary crisis. Anyway, the decision is yours to make. It's fine to continue as long as you love this profession and don't have personal money commitments.

Let me know if you need any help. You can send me your resume to [IMG]https://www.citehr.com/misc.php?do=email_dev&email=a29kdXBha2FAZ2 1haWwuY29t[/IMG]. I head the function of Recruitments for a US-based product-based company in Hyderabad.

Lakshman

According to me, your decision to quit should be based on what all your companies have given in its good times. Have you grown with the company? Have you learned from the company? Do not just consider the present bad scenario but also consider how the company treated you in its good times.

All the best.

Dear Arsha,

Greetings!

Don't quit your current job until you secure a new one. I am currently facing the same problem. My management has given a warning to start looking for another job. I understand the challenges and difficulties of finding an HR job when the market is slow. Therefore, it's advisable not to leave your current job.

Thank you.

Hey Asha!

You have not mentioned in which industry you are in. Anyways, as the market is bad, it is better not to quit. It would take the same time, maybe a month or two. The total industry is in this crisis. Please have patience, and we shall all pray.

Quitting now will leave you in distress, as the job market is really sluggish right now. So it's better to be patient and hope for something positive from your current company, like receiving the pending pay. In the meantime, keep looking for opportunities and avenues. If you receive a good offer, quit; if not, keep trying. Things are tough for everyone these days, even for employers, so be cautious!

Regards,
Ritika

Hi All,

This is my first post on this site. It's my first job and I'm extremely fed up with it as there is no job satisfaction at all. So, please suggest: should I quit or wait during this crisis period? I have not even completed a year here.

Hi Arsha,

If you are based in Chennai, please send me your profile at [Login to view]. However, do not quit your job unless you secure a new one, as the job market is very tough. I have faced quite a number of interviews after losing my job, and it can be challenging to create a good impression, even though it's not your fault. Remember, the job market is highly competitive, and you need your experience certificate to speak for you. Money may not be the only factor, so hold on and try to learn new things until you find a new opportunity. Equip yourself. All the best!

Regards,
Priya

Hi Dear,

I would suggest that you not leave your current job at present. Instead, I recommend that you explore other job opportunities in the market since you mentioned that you don't have much work to do at the office. This is the right time to search for jobs because you can easily take time off for interviews. I also suggest considering the consumer durables or automobile industry because currently, there is no news of a downturn in these sectors. I am confident about this advice as I have previously worked in the automobile industry and am currently associated with consumer durables.

Cheers,
Rajat Tanwar
New Delhi
9350850180

Dear Arsha,

First, search for a better job and then quit your current job. Being jobless is also a headache. Therefore, it is advisable to first seek better opportunities for yourself before making any decisions.

Vedvyash
Head HR & Admin
Surya Design Line Pvt. Ltd.
Noida, UP.

Hi Priya,

The automobile industry has slowed down its production, not only in India but all over the world. We cannot attribute this solely to today's market fluctuations. Therefore, it would be wise to explore opportunities in any industry, anywhere, at this time. However, ensure that you can excel in the role offered and that the work environment is conducive to your growth.

Regards,
Priya

Hello,

I have a concern regarding the employees not receiving their salaries for a couple of months. Given this situation, don't they have any means, legal or otherwise, to ensure that they are paid what they are owed? Can a company continue to employ people without compensating them? And if someone wishes to take legal action, what is the process for doing so?

Clarity on these matters may assist others in similar situations.

Thank you,
PS

Hello,

I had a point regarding the employees not having received their salaries for a couple of months. Given this situation, don't they have any means, legal or otherwise, to ensure that they are paid what they are owed? Can a company continue to employ people without paying them? And in the event that someone wishes to take legal action, how should they proceed? Clarity on these matters could assist others facing similar situations.

Thank you,

PS

Exactly, I would like to know more about this situation. Although we have been working for the past two months, inquiring about our salaries only led to more frustration as the management advised us not to focus too much on money, stating it is a minor issue, but to concentrate on our work. There are rumors circulating that we may not receive any pay for the next few months as well. The uncertainty is disheartening.

Regards,

Arsha

Hi Arsha,

This is the situation many small organizations are facing these days, particularly with small KPOs, BPOs, and other IT/ITES organizations. I know it is very tough to work without a salary, but you do not have many options at this point. The market is very bad, so it's difficult to get a job. My suggestion would be to look for a new job and at the same time continue with the job you are doing at this moment because it is even more difficult to get a job when you are jobless.

So, look for a good option and as soon as you get a good option, quit the current job. Hope you get the break soon. All the best.

Regards,
Surendra

Hey, guys, let's have more discussion on the legal aspects of employers not paying employees. Any thoughts, anyone? What happens if a company goes bankrupt? All leave without pay... no legal action can be taken in this regard, or what? Seniors, please advise. Cheers, Ruchi.

Dear PS, Arsha & Ruchi,

Interesting topic to discuss. Your query is, "What happens if a company goes bankrupt?" Well, everyone has to leave without pay, and no dues can be claimed. Furthermore, you cannot take any legal action against them! Shocking, right?! :icon10: But that's the fact!

When a firm goes bankrupt, its assets are sold and the proceeds are distributed to the borrowers/venture capitalists based on priority percentages. Any other views...

Thank you.

Hi Arsha,

This is the situation many small organizations are facing these days, particularly with small KPOs, BPOs, and other IT/ITES organizations. I know it is very tough to work without a salary, but you do not have many options at this point. The market is very bad, so it's difficult to get a job. My suggestion would be to look for a new job and at the same time continue with the job that you are doing at this moment because it is even more difficult to get a job when you are jobless. So look for a good option, and as soon as you get a good offer, quit the current job. Hope you get the right break soon. All the best.

Regards,
Surendra

And I have heard that the present market situation would prevail for another 1 to 2 years. And till then, my God, I can't imagine what would happen! 😕

Dear Arsha,

Try taking your HR into confidence and finding out when they can pay your dues. Speaking to the higher authority in a straightforward fashion will also help. It is difficult to switch jobs at this time. Try holding on for some more time.

Swati

Hi Mercy,

Kindly do not go and meet the higher-ups directly in this current situation. Certainly, they will not have any good replies and as per your reply, they are still getting work done by you. So, their motive is to get work without paying out. Please do not meet the higher-ups but try looking for an opening as of now. Put down your papers, get all your experience certificates and relieving letter, and move out. All the very best in life.

Regards,
Priya

Dear Arsha,

I also faced the same situation in my previous company. We were not getting salary for more than 2 months. Luckily, my performance was good, so they paid only one month's salary. However, I was searching for a job in the meantime. After I got my current job, I submitted my resignation and left the company. I didn't serve my notice period; they just approved my resignation. A month after I left, the company shut down.

Just want to conclude that you should stay in that company and search for a new job.

Regards,
Menolta

Hi,

Regarding your current situation, you are supposed to be paid for your work. No company has the right to make you work without paying you. If the company does not have any resources, it goes for downsizing, layoff, cost-cutting, M&A, or filing for bankruptcy. Analyze your company's strength and also your competencies. Have self-belief. No one works for free. The top management gets paid in lakhs only because they have confidence they can take risks. Have the courage to make decisions in your life. As already mentioned by some, if you are not gaining anything, try getting into some creative pursuits. Always remember, if you have the desire and potential to succeed, any company would hire you even during crisis times. All the best. Don't lose hope.

Dear Arusha,

My advice is not to quit the job at this point in time because the job market is down. So, try for a new job. This means you can start a job search, and if you get a better offer, then move on. Until then, please stay in your current job.

Arsha, there is no way to claim your dues in the case of bankruptcy (that's what the law says)! Bankruptcy occurs when an individual, a concern, or a company cannot meet their liabilities and has no money to pay them. Another scenario is when the company reemerges in the future, the management must settle all their dues before resuming operations. For example, Coca-Cola was once bankrupt. Taking a recent example, Lehman Brothers. If they wish to resume operations, they must settle all their liabilities and dues first before being allowed to operate again.

Regarding Provident Fund (PF), it is a separate account and is not affected by bankruptcy.

Thanks for initiating the discussion on this matter. However, are there any ways to claim the salary? What about the PF? Won't they be questioned by the Labor Department or PF office? How can they leave the employees without pay like this? Is there any relevant act or law for this?

Regards,

Arsha

Yeah, you are right, Arsha. I hope it will not go on for 2 years, but this downturn trend will be there for the next 6 months, and to regain it will take 1 year. :huh:

Hi Arsha,

According to everyone, you should not leave your current job. Still, I can share an incident with you...

One of my friends left her job about a month and a half ago, and until now, she hasn't been able to find a new job due to the global meltdown. She was also in recruitment. Even though she has posted her resume on all the leading job portals, she hasn't received a single interview call in the last month. Now, she realizes that she should not have left her job without having a concrete offer. She is feeling regretful now.

So, my advice to you is: don't make the same mistake. Surely, you will find a good job soon. Please consider staying with your current company.

ALL THE BEST...

I really don't think you should be sticking to the organization at all. One, if they had any intentions of paying, they would have by now. Two, what do you expect from a financially weak organization, to pay you 2-3 months' salary once they gain stability? I am sure that they will also start doing the staff cuts very soon, so before they ask you to leave, you should go and get one option. The best thing to do is to take a leave and rigorously look for a new job (don't put in your papers till then, let your leaves be exhausted).

Write back if you need any help! Thanks

I truly believe in the comment "Love your work as well as your company." Be associated with your present company even though it's not doing well. Be loyal to the company. People were ready to engage with your company when it was thriving, but now that it's facing challenges, interest has waned. This is not good at all.

In life, you need to prove a point. Now, it's your turn to show your company that there are still sincere people in this world. I believe this is the best time to demonstrate your dedication and support the upliftment of the company. Stay with it. All the best.

Dear Arsha,

Your problem is not too far from others; it's better to consider changing your job if you have a better choice. Your boss has failed to maintain the business, and the staff only receive a salary. If you receive incentives or a share in the company, you can think differently; otherwise, it's best to quit.

Linnan

I would suggest you not to quit, as this is also considered as learning. Can you do something big and innovative and put the company back on track? Every day we learn; let us learn new things out of this situation.

Ravi

Dear All,

I really appreciate the advice and support offered by members here. I am currently looking for an opening in HR. Can any of you help me in the same?

Regards,

Hi,

Once you get a good opportunity, you can leave this company. Meanwhile, you can continue here. If there is a financial crisis and things are down, it will take time to recover. It would be better if you search for a new opportunity. Once you find one, you can leave from here.

Viji

Dear Friend,

My suggestion would be to secure admission in a short duration course to enhance your CV. Ask your employer to sanction you leave without pay for the duration of the course. You will get time to work things out - i.e. search for a good job and at the same time utilize the waiting period for improving your CV. If the company in which you are working is able to pull through and pay salaries, you may continue in the old job.

Remember, every adverse situation can be used to better your future.

P K Misra :)

As said by almost all, it wouldn't be wise to quit my job now....but i will surely look out for other job openings...Very True Divya...I too updated my profile in portal about a month ago...but i was wondering why i didn't get a single call till date...!!! Thanks....Divz...!!!

Hi,

In my opinion, you should continue with the same organization. As today's situation in the market is very bad, you know the "last in, first out" principle is being used for shunting out employees from the company. If you join another group, you will be the last in for that organization. Of course, you can search for better openings.

Best Regards,
Vijay

More important is to know whether the company management has been communicating with the employees or not! There is a case where the CEO of a company which is in trouble communicates with the employees to inform them about the state of the business and what he plans to do to revive it. The employees respond by a voluntary wage cut until the situation improves.

The moral of the story is: the employee response to such situations should and would depend on whether the management is transparent and credible in the eyes of the employees or not. If the management overtly and covertly had been conveying (demonstrated by its policies and actions) the message that employees were partners in progress in good times, the employees will stand by patiently during times of crisis.

Arsha,

I really appreciate your views. I suggest that you try to look into the matter and talk to the higher authority in the company or to whom you report. Just try to understand the situation by putting yourself in other people's shoes. If there is still a positive sign, then look for change with a good and stable company.

Regards,
Ritesh

Dear Naik,

The management didn't bother to tell us until we asked them after a month regarding the pay. But they coldly said, if anybody wants to stay can stay, or else leave the organization. I, being right from the start of this company, was asked to come to the office along with a few others whom he tries to retain. But now the situation has turned from bad to worse....!!! There is absolutely no transparency....!! :-x

When a few employees said that we need to be paid as everyone was working for a salary, he's trying to turn the issue on us!!!

More important is to know whether the company management has been communicating with the employees or not! There is a case where the CEO of a company that is in trouble communicates with the employees to inform them about the state of the business and what he plans to do to revive it. The employees respond by a voluntary wage cut until the situation improves. The moral of the story is: the employee response to such situations should and would depend on whether the management is transparent and credible in the eyes of the employees or not. If the management overtly and covertly had been conveying (demonstrated by its policies and actions) the message that employees were partners in progress in good times, the employees will stand by patiently during times of crisis.

Dear Naik,

The management didn't bother to tell us until we asked them after a month regarding the pay. But they coldly said, if anybody wants to stay can stay, or else leave the organization. I, being right from the start of this company, was asked to come to the office along with a few others whom he tries to retain. But now the situation has turned from bad to worse....!!! There is absolutely no transparency....!! :-x

When a few employees said that we need to be paid as everyone was working for salary, he's trying to turn the issue on us!!!

Arsha, why this mess? Take leave for a week and try full time on a good opening. "Smarter you plan, faster you execute".... Keep rocking.......:icon1:

Dear Arsha,

It seems your current organization is not ready for flexibility; then, it's not worth experimenting with them. Try for a new job and leave the current one, but only when you get a good offer in hand. Take your clients to the new job place; at least, it will add value to the new workplace. Surely, you will get good openings and business too. Good luck! 🙂🙂