Facing Unpaid Salaries and Company Closure: How Can We Secure Our Hard-Earned Money?

Dear Sir/Madam, please note that I have been working at a Pvt. Ltd. Company since 2012, overseeing HR/Administration for the organization. It is very unfortunate to state that the company has not paid salaries to its employees for the last 8-10 months, resulting in a high attrition level. However, more than 100 employees are still on the payroll to date. The company has also not paid bonuses/ex-gratia for the last 2 financial years. Additionally, it is in default of fulfilling and paying PF/ESI and other statutory compliances. Various cases such as 7A, 14B, and others are still pending in several offices.

The management is on the brink of declaring that the company is running at a loss and we are nearing winding up as it has already begun selling its assets. Concerning the pending salaries and other emoluments of employees, the management simply raises their hands, stating that they do not have any funds to pay anybody. Despite various meetings/gheraos, we have not received any satisfactory answers from the management regarding the receipt of our legitimate dues. We fear that one day the company may be shut down by the owner, leaving the employees in a difficult situation.

As for the Labor office/PF office, etc., various cases have been filed, but we do not expect any fruitful results as our management is adept at buying time.

We hereby request you to kindly guide us on the exact path we should take to enable us to receive our hard-earned money.

Thank you.

Dear friend, the fact that the company has 100 or more employees still on its payroll, salaries of the employees are overdue for months, pending legal proceedings against the management for non-remittance of dues to ESIC, EPFO, etc., frequent representations and agitations of employees about their dues go unheeded by the management, disposal of some assets under the guise of funds mobilization, and the absence of any concrete efforts by the management to remedy the situation are indicative of the management's firm decision to allow the company to die a natural death.

Under these circumstances, my suggestion to the existing employees, including the poster, would be to seek alternative employment, resign forthwith, and file claims in the appropriate forums for the pending dues such as salary, gratuity, etc. I don't think that creditors like banks and other financial institutions would sit idly by but would initiate recovery proceedings through the concerned fora. In such a situation, the company would be ordered to be wound up, and the liquidation process would be set into motion, wherein the first charge could be created against the employees' dues.

It is wise to jump out of a ship before it starts to sink!

Dear Sir/Madam, I am facing a major problem at the Gujarat location with Mascot Event Company. I worked there as an HR Executive, but unfortunately, the company had a very poor working environment and did not provide timely payments. I decided to leave my job after six months. During my notice period, I experienced mental harassment, which ultimately led to my sudden resignation. When I informed the company via email of my decision to resign, they accepted it easily and assured me of my pending salary. However, when they called me to issue the payment, they started harassing me and adamantly refused to pay me.

Please advise me on how I can recover my salary and ensure that the importance of HR is recognized. You can reach me at [Email Removed For Privacy Reasons].

Thank you.