As per Payment of Wages Act, 1936, an employer is liable to pay salary to his employees within 7 days of wage month. If he employs more than 1000 workers, then he can pay it on or before 10th. There are penal provisions and imposition of fine under the Act.
But whether the employees of MNCs are willing to approach Labour Officer for assistance?
There is a feeling that if any employee files a case against his employer, there is every possibility of him being blacklisted and he will not get any good offer. Yes, it is true and the employers are aware of this and they know that no body will go for a litigation.
In India, if a small scale industrialist fails to pay wages, then the Labour Department will come to site make a long statement about duties and responsibilities of employer and warn of the consequences of non payment of salary. If a small scale industrialist fails to pay electricity bill, his power will be disconnected. If he supplies a defective article, the consumer redressal forum will direct payment of damages and replacement of article. But if the same are committed by an MNC, nothing will happen. I am sure that no previlage has been given to these MNCs with regard to labour laws but they assume that they have been authorised to dilute the law.
If the employees feel that they are also employees or workmen and not "professionals" as they were till the recession started, they can approach the concerned official of the state/ district for help.
Regards,
Madhu.T.K