Facing Co-Founder Betrayal and Unpaid Salaries: How Can We Seek Justice Together?

Company Challenges and Co-Founder Issues

I am working as a Technical Consultant at a startup company, which was running fine until we received our first revenue in February. However, this revenue has made one of the co-founders of the organization greedy, and he has cheated his partners by selling our product to the marketing company of the same product. This has caused our company to lose the product that brought revenue to the company. Additionally, the company has lost its rented premises; however, the registered office is the residence of one of the co-founders.

Staff Resignation and Salary Issues

Later in May, the entire staff was asked to resign, and our April salary is not being processed. None of the employees have resigned as it seemed wrong. When requesting salary, the co-founder is threatening termination and rudely saying to take any action against him but will not process the salary. Being a technical consultant, I have no idea how to proceed in this scenario as the other co-founders of the company are not taking our side, and they themselves have lost a lot of money in this scam. I am looking to the team here to suggest and guide me on how to proceed to get justice.

I think it is a situation of non-payment of salary to the entire staff. The poster himself admits that it is an extraordinary situation beyond the control of one of the co-founders, who alone manages things without any support from the others. His rudeness might be a symptom of his inability. Therefore, what is required is patience and persuasion. Of course, the affected employees can make a joint complaint to the area Deputy Commissioner of Labor, who is the authority under the Payment of Wages Act, 1936, in respect of claims relating to delayed or denied wages.

Dear Umakanthan,

Is it mandatory to file a complaint with the Deputy Commissioner of Labor, or can we consult any lawyer right away?

Hi Umakanth,

Please file a complaint with the Deputy Commissioner of Labour, and you will find solutions there.

Regards

Employee Rights and Wage Payment

Wages are the right of the employee and should be paid within the wage period. The partnership being broken or cheated is unacceptable for the employee. In this case, you all should provide a representation at the office of the Local Labour Department.

Dealing with Business Hardships

In business, hardships may arise, but the entrepreneur must deal with the situation with the cooperation of the employees. The entrepreneur should discuss and may take time to make payments, but cannot lament. All of you should lodge your complaint with the labor department to resolve the issue.