Hello Nathrao,
I think the Company here is LYING.
Had there been a genuine financial difficulty, the general/natural response SHOULD have been to give at least a GOOD-RATED Experience Letter to the employees--so that they would be able to get other jobs ASAP.
Gratuity, salaries, etc may not have been paid due to genuine constraints.....but the INTENT to keep the employees happy to the extent possible WOULD have driven the Management to ensure the employees settle down elsewhere faster--IF the financial difficulties were GENUINE.
We keep getting such requests from HR Managers whenever they decide to layoff an employee [for whatever reason(s)].....showing another option to him/her.
And here's a Company who doesn't wish to do even the little they can afford to.
@Vinus8--
I can't see any other way BUT to got legal for you & others......but unless ALL of you go together, the fight MAY be tough. Such managements tend to adopt a 'divide & rule' policy adeptly.
All the Best.
Rgds,
TS