Sudden Division Closure: How Can We Recover Our Unpaid Salaries and Dues?

Background of the Company

We are working with a pharmaceutical company established in 1958 in Mumbai. They launched a division in April 2016 with 54 Medical Representatives and 8 regional managers to operate nationwide. However, from the outset, they have been unable to pay salaries and expenses on time, not only to us but to other divisions as well.

Closure of the Division

On October 1st, 2016, after six months of operation, the Executive Director informed us that he was shutting down the division and could not retain five of us, the managers. Consequently, we were deemed irrelevant from the 2nd of October. The ED instructed us not to report to work the following day. Despite assuring us of a one-month notice period (as stated in our service agreement/appointment letter, entitling us to a two-month notice), the company has failed to pay both our September salaries and the notice period payment. They are now also not responding to our phone calls.

Seeking Advice on Recovering Dues

How can we go about recovering the dues owed to us by the company?

You can lodge a complaint with the labor department under the Shops and Establishments Act of your state. Additionally, one can file civil suits for the recovery of debt. Since your debt is already established, you can expect relief in less than six months. I suggest hiring one advocate and having all five managers file a case together so that your advocate costs will be saved. An advocate will not be necessary for the labor department complaint. If your PF and ESI contributions are unpaid, contact the local PF and ESI offices and lodge a complaint there as well. For this, you also do not need an advocate.

Please refer to this website for all the required information.

Consult a lawyer and, as per his or her opinion, please proceed with a legal suit.