Facing Verbal Abuse and Financial Uncertainty at Work: What Should I Do Next?

Dear Seniors,

Sorry to inform you that I have been working as a secretary to the Director in one of the steel manufacturing companies in Chhattisgarh. The company's financial health has not been good for over a year now, and we are not receiving our salaries until the 20th-22nd of every month. There have been no annual increments for the past year.

Management's Erratic Behavior

Recently, our management has been behaving erratically towards every employee, creating an atmosphere of terror. Our director is very short-tempered and frequently takes out their frustration on employees without any valid reason, just to terrorize them. Moreover, there is a 24% deduction from our salaries towards the contribution of PF, which is unjustified.

Recently, my director shouted at me for no reason and verbally abused me in front of HR staff who were also present in the chamber. I am horrified by this erratic behavior and truly scared. Please advise on what steps to take because there is a pervasive atmosphere of negativity and gloom in every department. People are leaving the organization every day, and the director is hiring new candidates. This targeted behavior towards employees, using verbal abuse and intimidation tactics, is a common practice by the management.

Financial Concerns and Retention Issues

There is chaos within our company, and my appointment letter states a three-month notice period. Moreover, employees who left earlier have not received their full settlement money for the past two years. I have been with this company for about 4.6 years, and my retention money is being withheld by the company. They also retain LTA and medical components (approximately 2500 pm) from employees and disburse it after two or three years, whenever they see fit. There is no clear policy regarding this, and pending bonuses are also concerning.

Dilemma and Decision-Making

I am in a dilemma as Diwali is approaching in a fortnight. I am unsure whether to resign and wait until after Diwali to receive my bonus and some part of the LTA and medical benefits, or to take legal action to address these matters.

Please advise on the best course of action.

Regards,
Rajendra

Wait for Diwali bonus and then quit rather than jumping into the legal fray to cause hardening of higher management's attitude towards you, besides wasting money and time.

I agree with Nathrao that only a collective approach will work here. Any individual effort will be counterproductive. However, PS Dhingra is right in asking you to wait until Diwali. Having waited for so long, another couple of weeks is worth it. What if the management decides to pay at least some bonus?

Also, I suggest you don't begin discussing the legal aspect with any other employees right now unless you are very sure he/she won't carry the news to the management. This attitude is fairly common among manufacturing sector employees in your part of the country. If the news that you are planning legal action leaks out, whatever chances of a bonus will go for a toss.

All the best.

Regards,
TS

Many of the things you have written are normal in an industry under stress. Other domains, including some of my clients, have not given increments for two years. Many companies in India facing cash flow issues are delaying salaries. But at least you are getting salaries while many other posts talk of not getting salaries for months together.

So the solution is simple: find another job and leave. Why would you continue to work for a company that can't pay on time and not pay the salary you think you deserve?

Perception Differences

There may be a difference of perception. He may have a justified rant against the employees for messing up things. The stress of financial problems tends to make people short-tempered, and things that they would have accepted earlier often become unacceptable now.

Understanding Salary Deductions

Now, I think you are confusing salary and CTC. Please see earlier posts on the deduction of the employer's share of PF on this forum, and you will understand that this is an accepted practice. But you have worked there for four years. Are you now suddenly having a problem? Were they only deducting 12% in earlier years? If so, you would have a case before the PF department.

Erratic Management Behavior

Ok, please explain how creating a situation resulting in people leaving is "swallowing their hard-earned money." The company is not liable to employ you for life. Once you leave, they don’t pay you. Or did you mean something else?

Retention and Reimbursement Policies

Again, you seem to be under a misconception. LTA and medical reimbursement are not payable each month. They are paid at certain times as per rules. So this is not retention. They are not liable to pay LTA unless you actually travel, and they don’t need to pay medical until someone actually has bills for genuine purchase of medicines.

Decision-Making in Difficult Times

When to leave is a decision you alone can make based on real circumstances you alone know. It’s better to leave when you get a job. Once you get the job, forget about pendings and walk off to a better environment. It makes more sense, of course, to wait for payment of bonus and salary and then leave. But it may not be possible if the new company does not want to wait.

In terms of your leaving, it is likely that you will not get any relieving letter. Make sure that your new employer is willing to accept you without a relieving letter from the existing company. I do not know whether it is possible for you to actually serve a three-month notice. But you will need to take a call on that based on these circumstances.