Navigating Delayed Salary Payments and Legal Recourse Amid Financial Crisis

Dear Seniors,

I am working with a construction firm in Hyderabad. The firm is basically a small-sized organization. The management has slowly delayed the payment of salaries on time and now has completely stopped the payment of salaries. In fact, the management is considering to pay some advances at their will and wish. There are no systems, and any suggestions on best practices are not appreciated. The system is purely biased, and only a few people clearly have the undoubted management support.

I am working as an HR Manager in this firm, and the management has decided to withhold my salary completely. Upon approaching the management for advances, the management has cited financial crises as the main reason for not releasing salaries. Some of my colleagues have received their salaries up to Sep 2012, and some of us have not been paid any salaries since Sep 2012. The management has indicated clearly that we should leave the organization or suffer the pain of working without salaries. In the event of leaving the organization at this point, there seems to be a rare possibility to receive the remaining amount. Should I continue to drag my feet in this organization or part away forfeiting my salary? Is there any way to recover my salary the legal way?

Dear Balaji_Hyd,

It would be rather tough for you to endure more time in an organization that does not care for its employees. Do not hesitate, but you may file a case in a civil court where the company or the organization is located. You will have to consult a lawyer/attorney and seek their advice. Then you may hire them if it's too complicated; explain everything to them, and they will, in turn, work step by step, like preparing a memo letter to the employer after an appeal in court. The plaintiff (yourself) will be suing the respondent (the employer) for a hearing. This is a rapid way if you'd like to proceed legally by filing a suit.

Apart from that, you may also approach the competent authorities (labor officer) to resolve the dispute or a conciliation officer.

P.S: If you are considering pursuing legal action, you have to ensure to file a case within 2 years from the last day of your work or the time you get relieved from the organization.

It is a big risk to continue working with a company that is not providing proper justifications for stop payment. As the HR Manager, you represent the management regarding salary and other employee benefits. Additionally, if you are acting as an authorized signatory for statutory formalities, take immediate steps to gain clarity on contributions.

Parallel to this, launch your resume across resume databases, engage in networking, and strive to secure a suitable opportunity as soon as possible.

Dear Seniors,

PF and Professional Tax payments are being made on time by the employer. However, the employer is giving us clear indications of leaving the organization. If we look into the financial health of the company, it is good enough, but the money is currently locked in Bank Guarantees that have been provided to various governments for bagging tenders.

Please advise me on a method to receive my salary before leaving the organization. I am least interested in engaging in a legal battle as it is a waste of time and money.

Dear Mr. Balaji_Hyd,

The best option for you at the moment is to approach a conciliation/labor officer for the best advice on how to get your salary back. Do not wait; consult first and see what the next step should be.

If you are receiving clear indications to leave the organization, find a new job as soon as possible and continue with your current company until then. Tender your resignation, obtain your leaving papers, and move forward. Your pending salary and final settlement should be your last priority - this is my recommendation.