How Can Employees Recover Unpaid Salaries and Deductions from a Struggling Startup?

Hi All, We work for a startup with around 250 employees across 4-5 locations in India. The company runs on funds which have stopped coming for a few months since management couldn't achieve the targets.

The management has not been paying salaries since May. The salary for May was paid in the next month, but only 70% of it. Since then, nothing has been paid. A few employees who create issues get paid at times in small amounts. Also, PF and TDS deducted from salaries have not been deposited into employee accounts. The CEO simply comes to the office, spends some time, and walks off. He promises to pay off every 20 days, citing expected funds that never arrive.

While employees have not been paid for three months or more, a few have been asked to leave, and the company has now decided to retrench further without providing any money. The Full and Final settlement statement does not have a date mentioned on it. When employees ask for a date, a satisfactory reply is not provided. No one raises their voice for fear of losing the money pending for all these months.

Options for current and ex-employees

What options do current and ex-employees have to get the money due? What is the process, and what are the pros and cons?

Thank you.

Dear SSAAVI,

Please understand that this is really a concern. You need to visit the labor office and file a written complaint against the organization. Along with it, you can file a complaint with the PF and income tax office about amounts being deducted but not paid to the authorities. Let other things be managed by them. They will surely help you resolve your problems.

Thank you.