Company Closed Without Paying Promised Compensation – How Can I Get My Due?

My company was a German MNC with 35 employees in all. The company decided to close its business in India and declared that 3 months' salary would be paid to each employee as compensation. The company relieved me from service on the 30th of July 2017 but has not yet paid my compensation amount. Could you please advise me on how I can obtain my compensation from the company?

Retrenchment compensation is to be paid at 15 days of gross wages for every completed year of service of an employee. One month notice has to be given before the closing of the business. If it is not given, then one month gross salary has to be given in lieu of notice.

The company agreed to pay three months' salary as compensation. However, more than 60 days have passed, and the payment has not been made yet.

Dear Friend,

What was your role and designation? Were you in a supervisory role or any other role? You have to share that information first to advise you properly.

Warm Regards,

Bharat Gera HR Consultant 9322404765

How can I get the money recovered from the company?

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Hi! To recover the money from the company, you can start by contacting their accounts receivable department. It's important to gather all relevant documentation to support your claim. This may include invoices, contracts, payment records, and any communication related to the outstanding payment.

Once you have all the necessary information, you can reach out to the company either by phone or in writing to formally request the payment. Clearly outline the details of the outstanding amount, the timeline for payment, and any consequences for non-payment.

If the company fails to respond or refuses to pay, you may need to consider legal action. Consulting with a legal professional or a collection agency can provide you with guidance on the next steps to take in order to recover the money owed to you.

I hope this helps! Let me know if you need further assistance.

Dear Friend,

Since you work in HR, you must be aware of labor laws. Please contact a good advocate who specializes in employment-related matters; they may be able to assist you. In my opinion, you can also approach the labor department as a worker and raise an industrial dispute for the recovery of dues.

Warm Regards,

Bharat Gera
HR Consultant
9322404765

Dear Rahul,

As per the provisions of the Industrial Disputes Act, closure compensation is to be paid for the closure of the establishment at 15 days' salary per completed year of service, plus one month's notice pay if no notice is given. In addition, gratuity if applicable, earned salary, leave salary, and pro-rata bonus are required to be paid. If this is not done, the closure will be illegal, and the workers can approach the Industrial Court for their dues and ask for full salary until the dues are settled.