Struggling with Unpaid Salary and Expenses: How Should I Handle This Financial Crisis?

Dear Sir/Friends,

I am working in a small-scale industry in Nacharam as a Manager (Sales and Projects) since November 2011.

Salary Issues and Financial Strain

In 2013, my salary for four months was not paid by the company. I understand that the company is not doing well, so I stopped asking for my salary for the months in 2014. Due to the pending salary, my daily expenses were affected, and I stopped going to the office, opting to work from home instead. I clearly communicated this to my Managing Director via email, but he did not reply. Given the company's situation, I never mentioned my salary for the months in 2014.

Lack of Response and Pending Expenses

The Managing Director was aware of the situation and did not request me to attend the office. Instead, he asked me to visit customers from home, which I did without refusal. However, he never replied to my pending salary reminder emails. I have sent approximately four reminders in hopes of receiving a response. Gradually, the company stopped assigning work to me.

Due to customer visits, my travel expenses amounting to Rs. 37,000 are also pending with the company. Additionally, the company offered a health insurance amount of Rs. 5,000, which I had to purchase out of my pocket.

Total Pending Amount and Company's Promises

A total of Rs. 1,52,000 is pending with the company. Whenever I call my Managing Director about the salary, he just says that some amount will be received next week and will be paid. This has been ongoing since January 2014, and not even a rupee has been paid.

I have proof of the amount available in the company's account over the last five months. Based on the company's promise of paying the monthly salary on time, I have taken a home loan, which I have to pay every month.

Seeking Advice and Next Steps

Please help me, friends, in deciding how to proceed. I have all the proofs (salary pending reminders, company account balance, my travel expenses, etc.). Now, I am planning to resign from the company, hoping they will do a full and final settlement. I don't know what to do if they do not pay in that case as well.

Please help me, friends. I have a family with a 7-month-old baby, and my financial situation is dire.

Hoping for the best.

Regards,
Kranthi Varma
Hyderabad

I was also facing a similar problem with my last company. It was a small-scale industry experiencing financial difficulties. What I did was start searching for a new job in a stable and well-established company, ensuring I kept myself on the safe side this time. After receiving my offer letter, I resigned from there. However, my full and final settlement has been pending for the last three months, and they are processing it in parts. I always send them reminder calls and messages. I am very happy in this new company as I receive my salary on time.

Thanks,

Jyotshna

Like Jyotshna mentioned, first and foremost, begin to look for another job ASAP. While keeping faith and trust in someone—whether it's a company or an individual—one needs to draw the line somewhere. A sort of trade-off between 'understanding' others' problems and 'pragmatism'—you owe your family much more than the company.

Since the company does seem to have genuine financial problems, I don't think it will help you in any way to keep harping on the dues/arrears. That doesn't mean that you need to forget them.

I suggest meeting your MD once, discuss with empathy about the company's problems as well as your family situation, and get something in writing of how much is due to you. If the financial situation is indeed bad due to something beyond the MD's control, he would appreciate your step.

This will also help you to keep the channels of communication open—after all, you are into sales [guess you know better how this can help you in the long term].

Since you haven't mentioned the sector/domain your company is in, I can't comment on the prospects about the chances of the company fortunes reviving—meaning whether it's practical for you to really expect the dues later on. Some sectors are doing badly now.

And to repeat, look for another job ASAP.

All the best.

Regards,
TS

Thank you for your suggestion; it will be helpful to me. Tomorrow, I am planning to meet with my MD and take the necessary steps and update you on the same. All the best for your future career.

Regards,
Kranthi Varma

Thank you for your suggestion; it will help me a lot. Tomorrow, I am planning to meet my MD and take the necessary steps and update the same.

Regards,
Kranthi Varma

Attribution: https://www.citehr.com/489098-compan...#ixzz2xWKC4lQk