Laid Off Without Pay: What Can We Do About It and How Much Will It Cost?

Hi, I was laid off without any prior notice. The company stated that due to financial constraints, they closed one department and terminated over 40 employees on November 22, 2023. Initially, we were informed through an email that salaries would be paid on a regular schedule. However, later they notified us that there would be a delay in salary disbursement, and as of now, we have not received our salaries. All employees had a monthly salary of over 20,000.

Actions Against the Company

I would like to know what actions can be taken against the company and when such actions can be initiated. Additionally, I am curious about the potential costs associated with taking legal action.

Thank you.

You can approach the officer concerned at the state Labour Department and file a complaint before him. He will ask the employer to attend a meeting, and a settlement will be reached. This service is provided at no cost to you.

Typically, there will be two officers present—one responsible for enforcing labor laws within their jurisdiction, and the other handling industrial relations. The latter's duty is to resolve issues such as non-payment of wages and illegal termination. Remember that this service is completely free, and you should not hesitate to contact the labor department if you have any grievances.

If you're not getting paid after losing your job, there are a few steps you can take. First, check your work agreement and company rules to understand the terms for final payments. Reach out to your company's HR or payroll department to find out why you haven't been paid.

Keep a record of your communication and any documents related to your job and termination. If talking to the company doesn't work, consider getting advice from an employment lawyer. They might send a letter to your employer explaining the money you're owed and setting a deadline for payment.

Some places require mediation or arbitration before going to court, so your lawyer can guide you on that. If needed, you can file a complaint with the labor department or an employment tribunal. If all else fails, legal action may be necessary, but the cost will depend on your situation.

Remember, it's crucial to consult with a legal professional who can help based on your specific circumstances.

Hello, please communicate with the company HR regarding the same. If they are not responding properly, you can also register your complaint with the Labour Officer or Labour Enforcement Officer. They will resolve your concern within 15 days. You can register your complaint online. You don't need to go anywhere else.

I completely understand your situation. I, too, am facing the same issue. Being an HR professional, I haven't received my salary post-termination. I am considering approaching the labor department, but I am apprehensive because the company is not entirely closed.

Moreover, there's a concern about joining a new workplace, as negative feedback from my previous employer could affect my background verification reports. It's disheartening that some employers in India still rely heavily on ex-employers' feedback, especially when the previous companies are closing due to unsuccessful operations.

While the laws are in place, employers often neglect their obligations. If you or anyone has any suggestions or insights, please feel free to share. Thanks