Struggling with Unpaid Salaries for 4 Months: How Can We Secure Our Dues and Benefits?

Salaries Not Paid Since 4 Months

Hi All,

I was working as an Executive with a manufacturing company in Bangalore. Along with me, more than 35 people resigned last month, i.e., 07-09-2009, based on the management's oral request due to the bad financial condition. They are not able to continue our services and assured us that based on our offer letter agreement, they are ready to pay 4 months of pending salaries with one month notice period amount and all arrears. They assured that within one month, they would settle all our arrears and provided me with a clearance letter from the company. I joined this company on 10.8.2006 and worked sincerely for more than 3 years. However, the company is now closed unofficially (only a few people are working with their laptops from home; if you see the factory gate, it appears closed due to vendor payment problems, and all work is being outsourced to complete existing projects).

The problem now is that they are not paying the amount they assured by the committed date. The HR manager and concerned individuals have informed us that it has been postponed to an unconditional date. They are saying that if they receive some money from buyers, they will pay our arrears. So, how can I get my arrears, PF, and gratuity for eligible individuals? We have our offer letters, clearance letters from the company, bank statements showing that we have not received any salaries for the past 4 months, and our old salary slips. With these documents, how can I fight for my settlement? All other employees are also facing the same problem. Kindly suggest and guide me. Your assistance will not only benefit me but also more than 35 other individuals. If anyone wishes to offer personal suggestions, please email [IMG]https://www.citehr.com/?emage=700a52a35b056b69ca99fed25d7e3a8b[/IMG]

Thanks & Regards,

Can I know if this assurance was given to you in writing? Also, how did you accept the clearance letter when all the dues were not cleared?

Thank you.

First, I thank you for your valuable reply, Chitrajee. They did not provide any written assurance to us. We asked for it, mentioning that all our dues would be cleared by a certain date with a specific amount. However, they emotionally told us, "Why are you asking like our vendors for it in writing?" Now, what should we do to handle this problem?

Thanks & Regards

Even though you have an offer letter or a bank statement, since you have accepted the clearance letter, it will be hard for you to solve your problem. One thing you can do is, based on what you have, you can send them a notice through court demanding to clear your dues. They will have to reply to that notice.

Dear Chandu,

Since you don't have any assurance from them that your salary for four months will be cleared with a specified date, it's better for you people to go to court and legally file a case against them. The case might take some time and money, but I don't think there are any other alternative solutions since they are refusing to clear your payment. Once they receive the court order, as Chitra says, they have no choice but to reply to you.

You should try to obtain a written letter from the management stating that your payment will be settled by a certain date. Following that, you can send a letter from the court requesting your final settlements. Once they receive the court orders, they are required to respond, or else they may need to come to a settlement, possibly out of court.

Hi,

What documents do you have to justify your dues to the employer? Have you done anything beyond company policies?

Regards,
Deepak

Hi Chandu,

File a case from where you can fight easily and take dates as soon as possible.

Regards,
Anil

Hello Mr. Chandu,

From what I read from the case, it's quite clear that the employer is either not in a position to pay or is trying to get away without making any payment. Please note that employees' dues cannot be denied by any company even in the event of the liquidation of the company. Employee dues arise prior to any dues of any other creditors; hence, the company is bound to pay you all the dues that are legally payable to you.

The content of the clearance letter will be very vital here. Please let us know what it reads. Further, do you have any proof that you were physically present (any attendance record, etc.) for the said period of three months? If yes, then your case becomes much stronger that you were present; however, the salary has not been paid. If not, such employers can twist the case.

Remember, collective bargaining has worked wonders in the past. Hence, the group of 35 people must unite together and file a suit against the proprietor.

Regards,
Vidyashankar

Dear seniors, Thanks each one of who replayed my quotation.
first need to clarify some points I posted earlier.

• as per my words “Clearance letter “ mean Experience letter from company. it shows my last working date in my company , It's not my final settlement copy, no where we are not signed.
• one more thing its look like layoff of our company but its sill working. Our staff last two years back more then 150 peoples after that thy step by step reduced man power saying that “COST CUTTING”

From this points may get accrued solution from you.
Thanks & Regards

Thank each one of who replayed my quotation
Dear seniors, first need to clarify some points I posted earlier.
1. as per my words “Clearance letter “ mean Experience letter from company it shows my last working day with company. It's not my final settlement copy, no where we are not signed.
2. One more thing its look like layoff of our company but its still working. Our staff last two years back more then 150 peoples after that thy step by step reduced man power saying that “COST CUTTING”
From this points may get accrued solution from you

Hi Hiten,

You have the option of approaching the Labour Officer of your region/area. I suggest the following steps:

1. Write to your employer requesting settlement of dues within 15 days and copy the Labour Officer.
2. Receive all dues (no negotiations, please).
3. If the employer does not respond or pay the dues, write separately to the Labour Officer and copy the employer. (All correspondence should be through registered post).
4. If there is no resolution within one month, approach the Commissioner of Labour of your state/region and the Ministry of Labour with copies of all correspondences.

Avoid quick fixes or heated arguments/actions.

Regards,
Hiten

Why don't you start working on the suggestions? Give feedback if actions suggested do not bring desired results.