Company Relocation Delays: How Should We Handle Unpaid Settlements and Salaries?

Company Relocation and Employee Settlement Concerns

Our company closed its office in Bangalore and moved to Delhi. The employees who were willing to relocate have moved to Delhi, while those who were not willing have separated from us. At the time of separation, they were informed that they would receive their full and final settlement within two months. However, it has now been more than three months, and they have started following up.

In June, we implemented a policy stating that the full and final settlement will be processed three months after separation. Unfortunately, the employees who left in May were not aware of this change. Management is not taking the matter seriously, citing poor financial conditions.

Will this delay in providing the dues to employees create any issues? The salary for the last month has also not been paid by the company.

Please suggest.

Regards,
Ravi

Certain vital pieces of information relating to the issue, such as the nature of your industry, the total number of employees in the industry as a whole including their breakdown details, the number of employees at the Bangalore unit before its shutdown, and the number of employees becoming jobless by not being able to relocate to Delhi, are missing in your post. Notwithstanding the legal consequences arising out of this partial closure of the unit in the industry, it would certainly be a case of retrenchment regarding the employees unable to move to Delhi. Since the industry is still operational and those assured of F&F have not yet been paid the same, they have to be deemed to still be in service, and as such, they can claim wages until they receive their F&F.

Thank you.