Struggling to Get Final Settlements: How Can Employees Recover Their Held Salaries?

An employee at an IT firm resigned due to poor financials in the company and lack of growth. His salary for four months was held back when he resigned. He was told that it would be released through FnF. It's nearly been a year, yet there are no signs of the release. The company has fared well and has paid the vendors. There are other employees with FnF amounts as big as 7 lakhs, waiting for their release. What should be the best way for these employees to get their money back?

Approaching the Labor Commissioner

Going to the labor commissioner is the last resort. They have been knocking on every door, meeting with company officials almost every week. The company is investing in rebuilding goodwill that was lost during the downturn but continues to delay every FnF endlessly.

Seeking Alternative Solutions

How and whom should these employees approach?

Legal Recourse for Unpaid Salaries

Even the labor commissioner cannot help you if an employee does not fall under the Payment of Wages Act wage ceiling limit, where the wages should be less than Rs. 18,000 per month. The only way to settle this is through court under the ID Act, where it may direct payment with interest as well as cover legal expenses.

I have seen many companies unable to pay salaries, leading employees to leave due to not receiving salary for over 2 months and neglecting it. Filing a petition through an advocate in court, mentioning all employees' names, could reduce legal fees and expedite the court's decision, which I believe would be fair and quicker.