Frustrated with Late Salaries and Lack of Benefits in My Franchise Job – How Can I Drive Change?

I am working as an Administrator cum HR in one of the MNC real estate broking companies. Being a franchise business, there is no professionalism in this company. Salaries are not credited on time, and there is no PF, no ESI, nothing. As an Admin, I know there is no financial crisis, but I don't know the reason for the delay in salary payments. Please advise me on how I can change the system.

Your query is incomplete. Please specify how many employees are working in this franchise business?

If the company is financially strong with cash flows, then speak to your management. The process can be approached step-by-step: write an email to your immediate manager about the circumstances prevailing for some time. The purpose of communicating with your hierarchy should be to address the requirements in the franchise to improve employee welfare and satisfaction.

Besides being an Admin, it is primarily your responsibility to speak to your boss about seeking redress if employees don't receive the salary they expect due to circumstances such as unfair pay practices. Await their response and see what best you can do. Hard-earned money can't be set aside.

Regards.

Thank you for your reply, Ms. Sharmila. There are only five employees in our Regional Franchisee; the rest of them are in the franchisee branches. Many times, I have had meetings with my MD regarding these issues. They have been giving silly reasons such as being out of station or the Auditor being on leave. As an administrator, should I send an email to the national franchisee about this issue?

Thanks for your reply, Ms. Sharmila. There are only five employees in our Regional Franchisee; the rest are in the franchisee branches. Many times, I have had meetings with my MD regarding these issues. They were giving silly reasons like being out of station or our auditor being on leave. Being an administrator, should I send an email to the national franchisee regarding this issue?

Information Needed

Please provide more information to ascertain the exact nature of the following:
- Location of the Franchisor and Franchisee?
- Is the Franchisor providing ESIC & PF benefits to its employees?

Thanks!

By giving limited and incomplete information, you are putting yourself and your job at risk because someone may give advice that could get you into trouble as they would not know the cascade or the circumstances leading to or from it. Have you thought about how the company will react to anything you do? For example, if you go to the master franchisee (assuming it's a different company and ownership), will your company still keep you in the job? I think not. You will be quickly jobless.

Master Franchisee Responsibility

Is the master franchisee responsible for or concerned about how franchisees conduct their business with reference to labor laws? For example, we have a client who has 90 franchisees. However, they are only concerned with delivery to their ultimate client and do not care how many, how few, or what qualifications of employees the franchisees employ.

Suggestions for Addressing Salary Issues

However, with the limited information provided, I would suggest:

- Get details of legal requirements under the Payment of Wages Act and Shop and Establishment Act.
- Get details of penalties and cases filed for similar situations.
- Showcase it to your director to highlight the risks they are carrying.
- Get details of good people who left due to late salary and those who refused to join you due to negative feedback from ex-employees.
- Try to see if there is an ex-employee or one leaving now who is willing to complain to the labor officer about late payment of salary and take up a proxy battle. However, if things get traced back to you, you will be out of a job in a day. Remember that.

I am curious, why are you and others working at a place with salary problems? Is it because you can't find another job? Or because you are paid higher than market rates?

Regards

I agree with the above opinion, some of which are indeed very practical and smart, and also consider your well-being in the process. I also appreciate your concern for the employees regarding the delay in payment of salary.

In this connection, the good intentions of the lawmakers are evident from the enactment of the Payment of Wages Act, as early as in 1936. However, its applicability and implementation are limited by its scope.

Warm regards.

The Importance of Timely Salary Payments

There can be absolutely no justification for the non-payment of salaries or even delays. Yes, this means that even if the company is not rolling in money, it has to pay salaries on time. The business risk is taken by the owners and shareholders—that's why they gain immensely when the business does well. An employee sells her labor for money—she doesn't receive supernormal benefits when the business does well and should not be made to suffer if it does not.

In any case, if the management tries to give any reasons for delay or non-payment of salaries, it is an unambiguous sign that they are dishonest, and I'd seriously doubt their intentions.