Greetings of the Day!
I am writing to share a concerning situation involving a well-known Kolkata-based limited company and its sister concern. I have been working as an HR professional in this company for more than two years, starting from its inception. Over these two years, the business expanded from West Bengal to Assam, Bihar, Jharkhand, Uttar Pradesh, and Uttarakhand. Everything was going smoothly, and the management was considering establishing its own plant in Bihar.
Sudden Closure of Operations
In October 2015, the management unexpectedly decided to cease operations in Bihar, Jharkhand, and West Bengal without any prior notice. They failed to pay salaries for that month, and employees did not receive their LTA, bonus, or TA. The director explained that there was an outstanding amount of 3 Crores with dealers, and sales personnel were unable to collect it, making it impossible to continue operations. Despite having an 800 MT sale from Bihar and Jharkhand, the management bounced dealers' security checks and lodged cases against them. HR informed employees of plans to reopen the plant in March 2016, prioritizing former employees for jobs. However, salaries were withheld, pending dealer payments, and employees are still waiting for their money.
Tragic Incident and Mismanagement
A few months later, a tragic accident occurred at the plant premises in Uttar Pradesh, where two employees were found dead in the guest house due to carbon monoxide poisoning from a brazier used for heat. The company's director and management allegedly bribed the local police to hush up the matter. There was no insurance coverage, neither ESIC nor EPF, despite deductions from salaries. The company did not compensate the deceased employees' families. Numerous requests for account numbers went unanswered, and personal letters yielded no satisfactory replies.
Financial Instability and Further Closures
In March 2016, the company cited financial difficulties, indicating potential salary delays. By the month's end, the director and finance head announced the closure of operations in the remaining states, advising employees to seek new jobs. HR was instructed to retain a few plant and sales personnel for a new company under a different name, promising to clear all dues for retained employees. However, no salaries, bonuses, LTA, or PF account numbers have been provided. Numerous reminders to the MD, director, and finance head have been ignored, and phone calls go unanswered. We have lost both our money and jobs. Approaching civil and labor courts has been futile, as the process is slow, potentially taking five years.
Request for Guidance
I am seeking your advice on what steps to take in this dire situation.
Thanks & Regards
From India, Patna
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147I am writing to share a concerning situation involving a well-known Kolkata-based limited company and its sister concern. I have been working as an HR professional in this company for more than two years, starting from its inception. Over these two years, the business expanded from West Bengal to Assam, Bihar, Jharkhand, Uttar Pradesh, and Uttarakhand. Everything was going smoothly, and the management was considering establishing its own plant in Bihar.
Sudden Closure of Operations
In October 2015, the management unexpectedly decided to cease operations in Bihar, Jharkhand, and West Bengal without any prior notice. They failed to pay salaries for that month, and employees did not receive their LTA, bonus, or TA. The director explained that there was an outstanding amount of 3 Crores with dealers, and sales personnel were unable to collect it, making it impossible to continue operations. Despite having an 800 MT sale from Bihar and Jharkhand, the management bounced dealers' security checks and lodged cases against them. HR informed employees of plans to reopen the plant in March 2016, prioritizing former employees for jobs. However, salaries were withheld, pending dealer payments, and employees are still waiting for their money.
Tragic Incident and Mismanagement
A few months later, a tragic accident occurred at the plant premises in Uttar Pradesh, where two employees were found dead in the guest house due to carbon monoxide poisoning from a brazier used for heat. The company's director and management allegedly bribed the local police to hush up the matter. There was no insurance coverage, neither ESIC nor EPF, despite deductions from salaries. The company did not compensate the deceased employees' families. Numerous requests for account numbers went unanswered, and personal letters yielded no satisfactory replies.
Financial Instability and Further Closures
In March 2016, the company cited financial difficulties, indicating potential salary delays. By the month's end, the director and finance head announced the closure of operations in the remaining states, advising employees to seek new jobs. HR was instructed to retain a few plant and sales personnel for a new company under a different name, promising to clear all dues for retained employees. However, no salaries, bonuses, LTA, or PF account numbers have been provided. Numerous reminders to the MD, director, and finance head have been ignored, and phone calls go unanswered. We have lost both our money and jobs. Approaching civil and labor courts has been futile, as the process is slow, potentially taking five years.
Request for Guidance
I am seeking your advice on what steps to take in this dire situation.
Thanks & Regards
From India, Patna
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My apologies, but why did you continue with a firm knowing what they do to their employees? Wasn't the first incident enough for others to decide? I understand the lack of employment, but working for such an employer is beyond every risk!
Civil court will take time. More importantly, it will need a lot of resources to fight against an employer with such deep pockets. I suggest you find a new job rather than focusing on this long-drawn fight. I request our seniors and legal experts to shed light on the best way out.
Regards
From India, Mumbai
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Civil court will take time. More importantly, it will need a lot of resources to fight against an employer with such deep pockets. I suggest you find a new job rather than focusing on this long-drawn fight. I request our seniors and legal experts to shed light on the best way out.
Regards
From India, Mumbai
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Steps to Take Against Unjust Company Practices
Look around for other jobs first. Join hands with affected workers and file a case of cheating against higher management officials. Collect individual contributions to fund the case (it will take time as well as resources).
Write to the Registrar of Companies about the company's activities and other irregularities. Similarly, write to ESIC and PF authorities about the non-deposit of collected amounts.
It is best to hire an advocate who is well-versed in labor law and company cases. If some of you have the will to fight against obvious injustice, then go ahead. Publicize your case and full details after taking full and proper advice from a good lawyer.
From India, Pune
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Look around for other jobs first. Join hands with affected workers and file a case of cheating against higher management officials. Collect individual contributions to fund the case (it will take time as well as resources).
Write to the Registrar of Companies about the company's activities and other irregularities. Similarly, write to ESIC and PF authorities about the non-deposit of collected amounts.
It is best to hire an advocate who is well-versed in labor law and company cases. If some of you have the will to fight against obvious injustice, then go ahead. Publicize your case and full details after taking full and proper advice from a good lawyer.
From India, Pune
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