Dear Seniors, I work in a BPO, and due to a loss in business, my employer is delaying salary payments and requesting our cooperation. However, it has become unmanageable. I have not received my salary since September 2017, and the Directors have informed us that it will be delayed for another month. If I resign with notice, I am also uncertain whether I will receive my salary and full and final settlement (FnF), as my colleagues who left in March 2017 have not received their FnF. I feel completely stuck here.
One of my colleagues complained to the Labour office (he mentioned it in an email sent to the Directors and HR), but no action has been taken, presumably because the company is still not paying salaries. Many people have already left, some by resigning and others by absconding. As a result, the headcount is now only 9 employees.
Kindly guide me on what I should do in this situation.
Thanks
From India, Mumbai
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One of my colleagues complained to the Labour office (he mentioned it in an email sent to the Directors and HR), but no action has been taken, presumably because the company is still not paying salaries. Many people have already left, some by resigning and others by absconding. As a result, the headcount is now only 9 employees.
Kindly guide me on what I should do in this situation.
Thanks
From India, Mumbai
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Your situation highlights the deteriorating financial conditions of the company. Ethically, if the employer is assuring the clearance of salaries within a specific timeframe, it should be supported, provided that the employer releases at least some funds to meet the bare minimum requirements.
Wages Act of 1948
As per the Wages Act of 1948, salaries need to be released by the 7th of every month for organizations with up to 500 employees. In your case, it is delayed by 3 months now. If you fall into the category of a worker and are drawing a salary up to Rs. 21,000, you can file a complaint with the Assistant Labour Commissioner of the area, who will proceed with actions as per the defined system, which may take some time. You may be required to attend different dates for inquiries and proceedings, which may sometimes resemble harassment. If you are drawing a salary of more than Rs. 22,000, you can directly file a suit in the civil court.
Considerations Before Legal Action
Both of the above actions will terminate your relationship with the current employer permanently and may harm each other's credibility. I would suggest having a conversation with your employer again and asking them to release some funds so that the minimum livelihood can be met. Understand whether they are genuinely serious about continuing with the company or just lingering on. Based on that, make your decision.
From India, New Delhi
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124Wages Act of 1948
As per the Wages Act of 1948, salaries need to be released by the 7th of every month for organizations with up to 500 employees. In your case, it is delayed by 3 months now. If you fall into the category of a worker and are drawing a salary up to Rs. 21,000, you can file a complaint with the Assistant Labour Commissioner of the area, who will proceed with actions as per the defined system, which may take some time. You may be required to attend different dates for inquiries and proceedings, which may sometimes resemble harassment. If you are drawing a salary of more than Rs. 22,000, you can directly file a suit in the civil court.
Considerations Before Legal Action
Both of the above actions will terminate your relationship with the current employer permanently and may harm each other's credibility. I would suggest having a conversation with your employer again and asking them to release some funds so that the minimum livelihood can be met. Understand whether they are genuinely serious about continuing with the company or just lingering on. Based on that, make your decision.
From India, New Delhi
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Correcting above, "The wages act 1948" to be read as "The payment of wages act, 1936, section 4". Inconvenience regretted.
From India, New Delhi
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From India, New Delhi
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Thank you so much for your reply. But I would like to ask as we are only 9 employees can 1 employee file suit in court as my salary is Rs. 30000/- pm. I mean the head count is less than 10 employees.
From India, Mumbai
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From India, Mumbai
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Part I Employee Action Analyse.doc
Employee Salary file - India 2016 AB.xls