Dear seniors, greetings! I need your advice. I am an HR professional and have worked for an engineering company in Belagavi, Karnataka, in the capacity of Sr. Manager-HR. I worked for this company for about three years, along with my colleagues who worked for almost the same tenure.
The Company's Downfall
It was a startup company and was doing well until it suffered a loss. The concerned HOD of the sales and marketing department, along with the whole team, didn't do justice to their job and left heavy recoveries in the market, even though they were getting high incentives for just order booking. One fine day, the HOD of the sales and marketing department put in his papers, and the entire marketing team stopped coming to the office from the next day. The management (Vice Chairman and Managing Director) relieved them from their services by paying them the notice pay, which I found either funny or shocking, although I had advised that the management's decision was wrong.
Meeting for Fund Recovery
A team leaders' meeting was called by the management to discuss the company's financial condition and to strategize on fund recoveries. It was decided to stop future order bookings and focus on fund recoveries. A team was formed for outstanding fund recoveries, and I was part of it. A team of six members, including a leader, was assigned the task of recollection, and I was one of the team leaders. As instructed by the management, all teams, including mine, went out for the recovery process and achieved some success, which was beyond the management's expectations. However, despite our efforts, the company continued to incur losses as only recovery was active and production was null. The funds to be recovered from the market were slowly rolling back, but no new orders were coming in, gradually increasing the company's costs. Soon, the management decided to stop employee salaries. This went on for two months, and all employees at all levels were not paid salaries. Workmen and staff requested salary advances, and being in HR, I was in a tough situation. Many workmen approached the labor office for justice and got their settlements done immediately.
Termination of Team Leaders
In this complete mess, one day, the Chairman advised the Vice Chairman and Managing Director to discontinue our (team leaders') services, stating that we had misused our powers. This was a shocker for all the team leaders as none of us had done anything wrong. We had supported management in all ups and downs, and suddenly, we were held accountable for nothing. We decided to approach the management to ask for the reason behind this sudden decision. Each of us approached individually and inquired about the allegations. The Vice Chairman and Managing Director humorously accused me of misusing my power by hiking salaries as per my wish without management approval. By this time, I understood that the Vice Chairman and Managing Director were incapable of handling their positions. I immediately presented the relevant papers of salary fixations and recruitment to prove that all documents had the signatures of the GM and company MD, which were also presented to the Chairman. None of them had anything to say.
Resignation and Aftermath
With all this frustration and wrong allegations, I had no other option but to resign. Other team members also resigned and submitted their resignations to the VC and MD, who asked us to submit the papers to the Chairman's PA. Without thinking twice, we submitted them to the Chairman's PA. He assured us of resignation acceptance from the Chairman's office and promised that the full and final settlement would be settled at the earliest. He requested us to stop entering the office premises immediately, to which we all agreed. The worst part was that none of the team leaders were reporting directly to the Chairman. Even after months of follow-up, none of the management, Chairman, or his PA responded. We tried approaching the new GM of the company, but all were deaf to our voice. It's been almost two years now, and we have neither received our resignation acceptance nor any full and final settlement. We even tried approaching over emails, calls, or text messages, all of which went unanswered. With no options left, we are planning to bring this management's unfair practice to light. Hence, I request seniors or advocates to please advise us.
Note: The management belongs to one ruling party, hence they are adamant in practicing such unfair activities.
Thanking you.
From India, Bangalore
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5The Company's Downfall
It was a startup company and was doing well until it suffered a loss. The concerned HOD of the sales and marketing department, along with the whole team, didn't do justice to their job and left heavy recoveries in the market, even though they were getting high incentives for just order booking. One fine day, the HOD of the sales and marketing department put in his papers, and the entire marketing team stopped coming to the office from the next day. The management (Vice Chairman and Managing Director) relieved them from their services by paying them the notice pay, which I found either funny or shocking, although I had advised that the management's decision was wrong.
Meeting for Fund Recovery
A team leaders' meeting was called by the management to discuss the company's financial condition and to strategize on fund recoveries. It was decided to stop future order bookings and focus on fund recoveries. A team was formed for outstanding fund recoveries, and I was part of it. A team of six members, including a leader, was assigned the task of recollection, and I was one of the team leaders. As instructed by the management, all teams, including mine, went out for the recovery process and achieved some success, which was beyond the management's expectations. However, despite our efforts, the company continued to incur losses as only recovery was active and production was null. The funds to be recovered from the market were slowly rolling back, but no new orders were coming in, gradually increasing the company's costs. Soon, the management decided to stop employee salaries. This went on for two months, and all employees at all levels were not paid salaries. Workmen and staff requested salary advances, and being in HR, I was in a tough situation. Many workmen approached the labor office for justice and got their settlements done immediately.
Termination of Team Leaders
In this complete mess, one day, the Chairman advised the Vice Chairman and Managing Director to discontinue our (team leaders') services, stating that we had misused our powers. This was a shocker for all the team leaders as none of us had done anything wrong. We had supported management in all ups and downs, and suddenly, we were held accountable for nothing. We decided to approach the management to ask for the reason behind this sudden decision. Each of us approached individually and inquired about the allegations. The Vice Chairman and Managing Director humorously accused me of misusing my power by hiking salaries as per my wish without management approval. By this time, I understood that the Vice Chairman and Managing Director were incapable of handling their positions. I immediately presented the relevant papers of salary fixations and recruitment to prove that all documents had the signatures of the GM and company MD, which were also presented to the Chairman. None of them had anything to say.
Resignation and Aftermath
With all this frustration and wrong allegations, I had no other option but to resign. Other team members also resigned and submitted their resignations to the VC and MD, who asked us to submit the papers to the Chairman's PA. Without thinking twice, we submitted them to the Chairman's PA. He assured us of resignation acceptance from the Chairman's office and promised that the full and final settlement would be settled at the earliest. He requested us to stop entering the office premises immediately, to which we all agreed. The worst part was that none of the team leaders were reporting directly to the Chairman. Even after months of follow-up, none of the management, Chairman, or his PA responded. We tried approaching the new GM of the company, but all were deaf to our voice. It's been almost two years now, and we have neither received our resignation acceptance nor any full and final settlement. We even tried approaching over emails, calls, or text messages, all of which went unanswered. With no options left, we are planning to bring this management's unfair practice to light. Hence, I request seniors or advocates to please advise us.
Note: The management belongs to one ruling party, hence they are adamant in practicing such unfair activities.
Thanking you.
From India, Bangalore
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Dear aggrieved member, I was shocked to read your post. You have gone through a great ordeal. Anyway, coming to a solution, since you were working in a managerial capacity, the only option you have is to file a civil suit. I don't think even the labor court will admit your case. Before filing a suit, you may approach the local labor officer. However, whether he will intervene remains to be seen as you and your colleagues were not "workmen." Other seniors will give their opinions too.
Thanks,
Dinesh Divekar
From India, Bangalore
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Thanks,
Dinesh Divekar
From India, Bangalore
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I concur with the views of Mr. Dinesh with a slight difference. The poster's narrative is indicative of the management's character as one of yielding only when being pinned down. Therefore, the poster and others can engage a counsel and send legal notices individually to the management to settle all their dues forthwith. Failing which, civil suits would be filed against them for breach of the contract of employment and damages for the inordinate delay.
From India, Salem
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From India, Salem
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I second Hon'ble member Umakanthan's opinion. Go and take the help of a qualified advocate who works on labor cases and issue a notice to the company. In case they fail, then file a suit for recovery. It is a long process, but if actively pursued, results will come out positive. Notwithstanding the fact that you are not workmen, keep the labor officer informed about the issue of non-payment of pay and allowances.
From India, Pune
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From India, Pune
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Legal Recourse for Non-Payment of Salary
As suggested by seniors, the remedy lies not under labor laws but under civil laws. The labor legislation dealing with wages includes the Minimum Wages Act and the Payment of Gratuity Act. The latter is applicable only to wages not exceeding Rs 24,000 per month. As a Senior Manager, the salary would be above that limit. Recourse to the labor office under the Industrial Disputes Act is available only to workmen.
Since this kind of non-payment of salary is rampant in India, the government should remove the cap of the wage ceiling under the Payment of Wages Act 1936.
Regards, Varghese Mathew
[Phone Number Removed For Privacy-Reasons]
From India, Thiruvananthapuram
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As suggested by seniors, the remedy lies not under labor laws but under civil laws. The labor legislation dealing with wages includes the Minimum Wages Act and the Payment of Gratuity Act. The latter is applicable only to wages not exceeding Rs 24,000 per month. As a Senior Manager, the salary would be above that limit. Recourse to the labor office under the Industrial Disputes Act is available only to workmen.
Since this kind of non-payment of salary is rampant in India, the government should remove the cap of the wage ceiling under the Payment of Wages Act 1936.
Regards, Varghese Mathew
[Phone Number Removed For Privacy-Reasons]
From India, Thiruvananthapuram
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Dear seniors, I am an IT professional and have worked for an engineering company in Belagavi, Karnataka, as an IT Manager. I worked for this company for about three years, alongside colleagues who had similar tenures. It was a startup company that was doing well until it suffered a loss. The Head of Sales and Marketing, along with the entire team, failed to perform their duties, leaving significant recoveries in the market, despite receiving high incentives for order bookings.
One day, the Head of Sales and Marketing resigned, and the entire marketing team stopped coming to the office the next day. The management (Vice Chairman and Managing Director) relieved them from their services by paying the notice period dues, which I found surprising, as I had advised against this decision.
Team Leaders Meeting
A team leaders meeting was called by the management to discuss the company's financial condition and fund recovery strategies. It was decided to halt future order bookings and focus on fund recoveries. A team of six members, including myself as a leader, was formed to handle outstanding fund recoveries. We were successful to some extent, exceeding management's expectations. However, despite our efforts, the company continued to incur losses due to a lack of production and new orders, which increased costs.
Salary Issues
Soon, management decided to stop employee salaries, which lasted for two months. Employees at all levels were not paid, leading to requests for salary advances. Being in HR, I found myself in a difficult situation. Many workers approached the labor office for justice and received their settlements.
Termination of Services
Amidst this chaos, the Chairman advised the Vice Chairman and Managing Director to terminate our (team leaders') services, accusing us of misusing our powers. This was shocking, as we had supported management through all challenges. We approached management individually to understand the reasons behind this decision. The Vice Chairman and Managing Director humorously accused me of unauthorized salary hikes. I presented documents showing that all salary decisions had the necessary approvals, but they had no response.
Resignation and Aftermath
Frustrated by the false allegations, I had no choice but to resign, as did other team members. We submitted our resignations to the Chairman's PA, who assured us of acceptance and a full and final settlement. We were asked to stop entering the office premises immediately. Unfortunately, none of the team leaders reported directly to the Chairman, and after months of follow-ups, we received no response from management.
Seeking Justice
It's been almost two years without resignation acceptance or settlement. Our attempts to contact the new GM and management via emails, calls, and messages have been ignored. We are now considering exposing these unfair practices and seek advice from seniors or advocates.
Note: The management is associated with a ruling party and is adamant about continuing such unfair practices.
From India, Bangalore
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One day, the Head of Sales and Marketing resigned, and the entire marketing team stopped coming to the office the next day. The management (Vice Chairman and Managing Director) relieved them from their services by paying the notice period dues, which I found surprising, as I had advised against this decision.
Team Leaders Meeting
A team leaders meeting was called by the management to discuss the company's financial condition and fund recovery strategies. It was decided to halt future order bookings and focus on fund recoveries. A team of six members, including myself as a leader, was formed to handle outstanding fund recoveries. We were successful to some extent, exceeding management's expectations. However, despite our efforts, the company continued to incur losses due to a lack of production and new orders, which increased costs.
Salary Issues
Soon, management decided to stop employee salaries, which lasted for two months. Employees at all levels were not paid, leading to requests for salary advances. Being in HR, I found myself in a difficult situation. Many workers approached the labor office for justice and received their settlements.
Termination of Services
Amidst this chaos, the Chairman advised the Vice Chairman and Managing Director to terminate our (team leaders') services, accusing us of misusing our powers. This was shocking, as we had supported management through all challenges. We approached management individually to understand the reasons behind this decision. The Vice Chairman and Managing Director humorously accused me of unauthorized salary hikes. I presented documents showing that all salary decisions had the necessary approvals, but they had no response.
Resignation and Aftermath
Frustrated by the false allegations, I had no choice but to resign, as did other team members. We submitted our resignations to the Chairman's PA, who assured us of acceptance and a full and final settlement. We were asked to stop entering the office premises immediately. Unfortunately, none of the team leaders reported directly to the Chairman, and after months of follow-ups, we received no response from management.
Seeking Justice
It's been almost two years without resignation acceptance or settlement. Our attempts to contact the new GM and management via emails, calls, and messages have been ignored. We are now considering exposing these unfair practices and seek advice from seniors or advocates.
Note: The management is associated with a ruling party and is adamant about continuing such unfair practices.
From India, Bangalore
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