Hi All, We work for a startup with around 250 employees across 4-5 locations in India. The company runs on funds which have stopped coming for a few months since management couldn't achieve the targets. The management has not been paying salaries since May. The salary for May was paid in the next month, but only 70% of it. Since then, nothing has been paid. A few employees who create issues get paid at times in small amounts. Additionally, PF and TDS deducted from salaries have not been deposited into employee accounts. The CEO simply comes to the office, spends some time, and walks off, promising to pay off every 20 days, citing expected funds that never arrive.
While employees have not been paid for 3 months or more, a few have been asked to leave, and the company has now decided to retrench further without providing any payment. The Full and Final settlement statement does not have a date mentioned on it. When employees ask for a date, a satisfactory reply is not provided. No one raises their voice for fear of losing the money that is pending for all these months.
What options do current and former employees have in this situation? What is the process, and what are the pros and cons?
From India, Bangalore
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While employees have not been paid for 3 months or more, a few have been asked to leave, and the company has now decided to retrench further without providing any payment. The Full and Final settlement statement does not have a date mentioned on it. When employees ask for a date, a satisfactory reply is not provided. No one raises their voice for fear of losing the money that is pending for all these months.
What options do current and former employees have in this situation? What is the process, and what are the pros and cons?
From India, Bangalore
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In this situation, employees have several options to address the non-payment of salaries and the failure to deposit PF and TDS deductions:
1. Seek Legal Assistance: Employees can consult with a labor lawyer to understand their rights and legal options under the labor laws of India, such as the Payment of Wages Act and the EPF Act.
2. Approach Labor Authorities: Employees can file a complaint with the labor department regarding non-payment of salaries and non-deposit of PF and TDS amounts. The labor authorities can investigate the matter and take necessary actions against the employer.
3. Negotiate with the Employer: Employees can collectively negotiate with the employer to resolve the issue amicably. They can request a written commitment regarding the payment of pending salaries and the deposit of PF and TDS amounts.
4. Explore Redundancy Compensation: If employees are retrenched without proper notice or compensation, they can claim redundancy compensation as per the labor laws.
5. Document Everything: It is crucial for employees to maintain records of salary slips, communication with the employer, and any promises made regarding payments. This documentation can serve as evidence in legal proceedings.
6. Stay United: Employees should consider forming a united front to address the issue collectively. Unity among employees can strengthen their position and increase the chances of a favorable resolution.
7. Prepare for Legal Action: If all attempts to resolve the matter fail, employees may need to consider legal action against the employer for non-payment of salaries and non-deposit of statutory deductions.
It is essential for employees to act promptly and decisively in such situations to protect their rights and interests.
From India, Gurugram
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541. Seek Legal Assistance: Employees can consult with a labor lawyer to understand their rights and legal options under the labor laws of India, such as the Payment of Wages Act and the EPF Act.
2. Approach Labor Authorities: Employees can file a complaint with the labor department regarding non-payment of salaries and non-deposit of PF and TDS amounts. The labor authorities can investigate the matter and take necessary actions against the employer.
3. Negotiate with the Employer: Employees can collectively negotiate with the employer to resolve the issue amicably. They can request a written commitment regarding the payment of pending salaries and the deposit of PF and TDS amounts.
4. Explore Redundancy Compensation: If employees are retrenched without proper notice or compensation, they can claim redundancy compensation as per the labor laws.
5. Document Everything: It is crucial for employees to maintain records of salary slips, communication with the employer, and any promises made regarding payments. This documentation can serve as evidence in legal proceedings.
6. Stay United: Employees should consider forming a united front to address the issue collectively. Unity among employees can strengthen their position and increase the chances of a favorable resolution.
7. Prepare for Legal Action: If all attempts to resolve the matter fail, employees may need to consider legal action against the employer for non-payment of salaries and non-deposit of statutory deductions.
It is essential for employees to act promptly and decisively in such situations to protect their rights and interests.
From India, Gurugram
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