Company Closed Without Paying Salaries: What Can Employees Do Now?

Hello seniors,

I want to know what action an employee can take if the company didn't pay the salaries of employees and now the company is closed.

Dr. Vijay Mallya, in their miniature form, exists anywhere and everywhere. However, the closure of the company cannot be grounds for non-payment of wages to the employees.

As a first step, all employees should come together and submit your complaint to the labor officer of your area. Let us see how the labor officer solves the problem. If he does not take any action, all of you should come together and protest in front of the MD's house. Call the TV crew of News 9 and let them give wide publicity. Organize the protest only when they are available to film. You may feel that this is a foolish option; however, while suggesting this, let me tell you that this is a much more powerful option. The entire government machinery was inactive until the media highlighted the issue of Dr. Vijay Mallya. Suddenly, the court and the Enforcement Directorate (ED) have become active. Therefore, exerting pressure through the media is crucial.

If nothing works, then you may lodge an FIR at the police station. The law will take its own course thereafter.

In India, even the Supreme Court has ruled that individuals have to fight for justice or for their rights. Therefore, do not be naive enough to believe that things will turn in your favor without a fight.

Thanks,

Dinesh Divekar

Employees can join hands and approach the Labour Officer. Section 33 C(2) of the Industrial Disputes Act, 1947 may be referred to in this connection. They can send a joint legal notice to the company owners/Board of Directors. Publicity as suggested above can move mountains. Whether the police will entertain an FIR in such cases is open to question (unless it is a question of cheating and/or fraud).

Hi,

If you fall under Section 2(e) of the Payment of Wages Act, 1936, you can approach the labor enforcement officer for necessary action. If you do not fall under the definition of an employee as per the above act, you can approach the civil court for a suitable remedy.

Satori S.

Depending on the nature of your employment and the company you work for, you can approach the appropriate forum or court under the S&E Act, ID Act, or Payment of Wages Act, whichever is applicable. Please consult a lawyer with documents such as the appointment letter, salary slip, etc., for better legal advice.

Check out www.labourlawhub.com for more information.