Facing Unpaid Dues from a Family-Run Business: How Should I Handle This Situation?

I worked as a Director of Operations in one of my relative's companies. It was a new office, and I had to handle all operations. I was directly hired by the owner. I didn't apply or negotiate for the job. We tried to make that startup office successful, but unfortunately, we had to shut it down after 1.5 years.

Now, I have 13 lacs of dues with the company, including 8 months of salary, 4.5 lacs of employees' salaries, and 3.5 lacs of company expenses. I waited for one and a half years for this. During this time, I asked many times, and he (the owner, who is a relative of mine) told me he would pay me all the money but needed some time. I trusted him. However, now he is saying to talk to his manager who is handling everything. The manager claims that the company hired me, not him directly, and is not giving me a clear answer, stating that he cannot pay me in one shot.

What should I do in this case? Please help me.

Jaydeep, this seems to be a trivial personal-cum-familial matter. For employment's sake, if you have signed any letters, documents, papers, etc., then your relative is bound by them. If the documentation has been executed legally, then you can pursue legal action.

However, this seems more like a familial matter where your money is being withheld by a relative. This is very much opposite to how a corporation operates. Please seek familial interventions into this matter—it's better to keep it that way.

Thank you, P-Lekha-Jacobs ji. I agree that he is my relative, but at the time of joining, we involved our parents and family. My joining and release were conducted with proper legal procedures. Now, after I informed his manager that I need to visit the Labour office, he is threatening to file a suit against me and says he will only pay me the money then. He is also claiming that at 40 locations in India, 400 people have tried to get money through the Labour office, but nothing has happened until today.

Keeping in mind the above, please see a lawyer immediately and seek assistance, especially one who specializes in labor laws.

This situation appears to be a clear case of cheating under IPC 420. It is advisable to consult a lawyer to address all outstanding dues, including your salaries. A public court trial may be a more effective way to resolve your issues rather than relying on this platform. Please consider this course of action.

My above response was based on reading the last sentence of yours in your first post. I have now read your subsequent post and the responses by other knowledgeable members. I agree with Gannahope, but I still think you should consider it carefully. I will not advise you to forgive your 4.5 lacs. Instead, try a different method of settling the issue through mediators, especially since the owner is your relative.

Latest Update on Final Settlement Cheque

Can you provide the latest update on your final settlement cheque?

Related Thread for Reference

I would also like to invite you to peruse the below-mentioned thread, which is more or less related to your case. You may find some solutions at the following link: https://www.citelegal.com/2488-need-...ctor-post.html

Dealing with relatives in the context of work can be quite tricky. You must be prepared to potentially jeopardize your relationship with the company owner if you wish to secure your position. If you possess any concrete evidence to support your claims, it would be advisable to seek guidance from a Labor officer or a lawyer.

Thank you.