Facing Salary Delays and Unsupportive Management: How Can My Friend Cope?

My friend is working in a multinational company, and his company has been facing financial issues for the last six months. He is experiencing continuous salary delays and has not received his salary for the past two months. Consequently, he is borrowing money from friends or family.

Today, he sent a message to his manager explaining his situation of not having enough money to come to the office. The manager's response was simply, "As you wish."

Please suggest what he can do in this situation.

I am a new user on CiteHR. I apologize for any mishaps. No, I am not associated with any MNC company, but I have a friend who works in an IT company. He is facing issues at his workplace. Several questions have arisen in his mind.

Can a Company Make Employees Work Without Wages?

Can a company make its employees work without any wages or rewards? If yes, why is that so? For your information, he has been working at this company for 2 or 3 years. Now, his senior has advised him to leave the company.

What Can Be Done in Such a Situation?

If the answer is no, what can he do in such a situation to support the employees? Any suggestions, please explain...

Regards

I think it's clear writing on the wall. He has not received a salary for 2 months. It does not look like he will get it anytime soon either. Stopping work there and looking for a new job makes eminent sense. At best, you can file a complaint with the concerned labor office. Perhaps you will get your money.

When your friend is not receiving his salary due to financial problems, it may indicate that the company either lacks orders or is unable to collect outstanding dues. Whatever the case, your friend might have recognized the situation and obtained a 'No Objection Certificate' from his current organization. He should consider seeking employment elsewhere to work peacefully. However, when it comes to leaving the company, your friend should discuss this matter frankly with the HR department.

I believe the issue of non-payment is not only affecting your friend but others as well. Therefore, individual complaints may not be as effective.

Regards,
Eswararao Ivaturi.

Is this situation pertaining to your friend only, or does it affect all or many of the other employees of the MNC? Has there been any communication from senior managers or HR personnel regarding this?

Performance and Financial Conditions of the MNC

What was the performance of the MNC in the past, and what is the past track record of payment and financial conditions of the MNC? If these were good and there is a possibility of improvement in the near future, please advise your friend to continue and plan his expenses accordingly. It is an employee's moral duty to stand by his company in a difficult period. This loyalty may pay off in the future in the form of a loyalty bonus and a period that teaches you a lot.

However, if this is not the scenario, then advise him to plan a move. But again, he will have to face similar financial hardships, at least for the period until he receives his first salary.

Importance of Financial Planning

This is also an alarm for all of us on how we live an end-to-end lifestyle and do not save for the future. We must build an emergency fund that can cover our full expenses for 3-4 months in case we face such a situation. Also, this condition often hinders our career growth as we may be unable to accept a new job offer because we are not able to manage 2-3 expenses when the salary is on hold during the notice period, and the next company will pay after one or more months of joining.

Regards,

Yes, friends, he is not the only employee who did not get his salary. There are 15 people from various locations in the same project, and they are continuously communicating via email or phone calls to the company. However, they are not receiving proper replies. Some have left the organization because of salary problems.