How Can a Marketing Manager Claim Unpaid Salary When Blamed for Company Losses?

One of my marketing manager friends was working in a small IT company. That company didn't give him his two months' salary. The owner of the company says that their business is not growing, and as he was a marketing manager, he is responsible for the company's loss. However, the company has the money to pay office rent, etc. Please guide on what he can do to claim his salary.

Thanks

No employer has the right to withhold the salary of any employee. The concerned employee can file a complaint with the labor department in that area. Prior to doing so, advise them to send written reminders to the owner requesting the release of their salary.

Regards,
Rajeev Dixit

If the company is paying other expenses and not salaries, the employee can take action against the company. The decision will be in the employee's hands only.

Please note that even in times of financial crunch, an employer is liable to pay the salary that was negotiated. Secondly, regarding his liability for the business performance, there are two aspects of salary - fixed and incentives (especially for jobs that involve sales, etc.). If the person is a non-performer, he may not receive incentives, but the basic or fixed monthly salary should be paid regardless of the financial situation.

Regards

Thank you for your comments. Do you think the labor court will be helpful in this situation? They have many pending cases with no solutions yet. It seems like a time-consuming process to rely on the labor court. Can you please suggest any other solutions? Thank you.

Irrespective of how the cases have been dealt with, your friend needs a way out. Reporting to the labor commissioner's office would be a last resort. How many months' salary is due? When the end-line is in sight, what is he planning? Has he started looking for a job? He will need the employment. The salary will come to him, but with a struggle.

I suggest he focus on a job search more than fighting his way through pending salaries. He needs to report the issue, but that's entirely his prerogative. I trust he might want to do it once he is certain of his next assignment.

We wish him all the best!

It's required that he should concentrate on job search. But at the same time, informing this to the DLC (Labour Commissioner's Office) is a good move. This will have a good impact on the other employees too. Employers tend to take the employees for granted. It's a time when employees should stand for their rights.

Regards,
Rajeev

If your friend has not yet resigned, kindly ask him to review the terms and conditions of his current company's appointment/offer letter as well as any handbook they may have (especially regarding salary disbursement). This will assist him in navigating discussions with the labor commissioner. Additionally, during his job search, advise him to conduct some research on the prospective company he intends to join and carefully review the appointment letter of the new company. This proactive approach will help him avoid similar issues in the future.

Thank you.