Facing Unpaid Salaries and Job Cuts: How Should Employees Handle This Employer's Demands?

Dear Professionals,

I work in Bangalore in a small-sized private limited company that falls under construction-related works. The director of the company says that the company's financial situation is very bad; hence, he doesn't have money to pay his employees. He is asking them to support him for another couple of months without giving any assurance on salary to employees. He says he can only pay based on the pending collections and completion of new projects. I think it will take quite some months to get money into the company's kitty to pay the employees. How can employees support him in this scenario?

Moreover, he is planning (sent mail to employees) to implement pay cuts and realign the team by terminating a few who are not supporting him during this situation. On what basis can he terminate employees or expect full support from all employees without paying them? March Salary has not been paid yet. I need your input and suggestions on how to face this situation with this employer. Thank you.

The Importance of Mutual Support in Employment

The cited situation is unfortunate. Employees can support their employer by being productive, but in return, the employer needs to pay salaries to their employees. Thus, support should be mutual. It is not a one-sided route. For example, if a bridge is constructed across a canal or river, the benefit of walking through the bridge should be enjoyed by people from both sides.

Please review the link regarding your query. It is not correct to terminate employees during a lockdown period.

Dear Mr. Yesurajaa,

In my earlier post, inadvertently I had not included the link. Here it is: PAYMENT OF SALARIES DURING COVID-19 LOCKDOWN

Dear Mr. Yesurajaa, this situation has posed a challenge for everyone, whether employer or employee. No one has witnessed such a situation in the post-independence era. At this particular time, both employer and employee must show solidarity towards each other.

There wasn't much difficulty in making payment for March '20. Did you pay for the month of March? The problem remains for the month of April, as the month remains completely under lockdown. As an employer, you have to find a way to discuss with your workmen. To support the workmen, the government has issued an advisory to pay in full for the period of lockdown.

No one can suggest going against the government's directive to pay. The best option is to discuss with your employees to find a solution.

Kind regards