Facing Unpaid Salaries and Job Uncertainty: How Should I Handle This HR Dilemma?

Dear All,

I just joined as Head HR on 1st December 2010 in a glass industry with a turnover of 1 crore per month. The working hours are from 8:30 to 19:15. In the very first month, I achieved the following:

For the month of December 2010:

• Recruited AGM FIN. / Joined VP / GM-SALES = Induction
• Training Manual guidelines
• Labor law compliance audit
• HR policy = HR protocol / manual
• Issued I-cards to all / New format for Recruitment / PMS / all levels
• Successful visit of Saint Gobin - 3 persons guests, etc.
• Recruited more than 17 people in a month

For January 2011, my achievements are as follows:

• Goal Setting Process-2011
• Department-wise Training Manual completed for new joiners
• Preview and approval of Training manual / Induction Manual / HR manual
• Recruited 22 people in a month
• Designed PMS system / Format for annual increment and approval
• Vendor development for labor contract = 6 labor contracts finalized for 100 labor

Before joining, the financial position and working capital were not sufficient. During the interview, the CEO mentioned that the company's image needed improvement and a more professional approach. The financial condition was critical, with salaries being delayed every two to three months.

On January 30th, my CEO informed me that my services were no longer needed, citing that I did not meet expectations. It became evident that the CEO did not intend to pay my salary for December and January.

Despite expressing my concerns about financial responsibilities, the CEO allowed me to continue working but at a reduced salary from February onwards, as per the offer letter of 33k gross and 3k performance pay per month.

However, I discovered on February 7th that only 21k was deposited as my salary, with the rest being deducted due to performance reasons. Similarly, the VP and GM did not receive their full salaries either.

The situation escalated when the GM resigned on March 3rd, and the CEO instructed not to include his salary in the payroll. Amidst a tense situation with the VP demanding urgent completion of HR formats, I faced unreasonable demands leading to a heated exchange with the CEO and VP.

Feeling unfairly treated and financially strained, I seek guidance on how to address this situation. Should I pursue legal action or take a different approach to address the exploitation I have experienced? How can I ensure the payment of my overdue salaries for February and up to March 9th, 2011, considering the financial strain I am currently facing?

Your advice and insights would be greatly appreciated.

Regards

As you are an HR manager, try not to be too excited; stay calm. I understand that it can be difficult in this situation, but you should try to understand the root cause of the problem. It's not your VP or anyone specific; it's that they (the company) really don't know the legal limitations. So, consider seeking legal advice and set an example. All the best.

Hey steelasp,

Wow... What a company! I'm really surprised by what you have narrated here. You do not have to worry. Just find a job for yourself and prepare yourself for a legal battle if you have all the necessary documents like salary slips, appointment letter, or any other written document.

I really do not think you should let them off for all the unprofessionalism and making a mockery rather than running the company.

A similar incident happened in a company I know of, where the newly joined President of Marketing made all the decisions, ironically even all HR/Finance/Operations-related decisions too, as he took the Managing Director into confidence that he could save a lot of money for them. Today, the company is facing significant losses and is involved in almost six cases of a similar nature.

I just hope you are not working in the same company. Anyway, I seriously feel that you need to take legal action against them for all the things they have done and said. But first, find a job, start working for your family responsibilities... 

Regards,
Archna

Oh, dear friend, do you have an appointment letter and a salary slip? If yes, then please contact the labor department. Thanks, dear, for the advice. Certainly, once I receive my February salary first, then I will proceed legally, and I am waiting for a good opportunity. Till then, I would like to wait and watch. Is it okay?

Regards,