Subsidiary pvt ltd of us law firm - salary payment

Raja (Querist) 27 May 2017 This query is : Resolved
Hello Sirs / Madam, I am working for a Pvt. Ltd, company in Bangalore which is a subsidiary of US based Law firm.Our Principal US company had defaulted salary payment for the last 3 months and when we request for Salary payments, US company CEO threatens to shut down his Indian subsidiary. Please guide us how to go about to get our salary payments. He also defaulted statutory payments like PF, TDS, etc. apart from rent, electricity, security charges, and other vendors to the tune of about INR 2.0 crore in total.

The poor Indian company employees are struggling a lot, expecting the salary payment. Since the salary payments are uncertain, everyone is looking each other without any proper guidance.

Your help in this regard saves lots of lives.

Thanks
Raja
reachraja@rediffmail.com

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Dr J C Vashista (Expert) 27 May 2017
Do you have any association or union? If yes, proceed through the same. Otherwise, issue demand (legal) notice collectively and set the law into motion.

Guest (Expert) 27 May 2017
Consult A Good Labour Side Good Senior Advocate

Raja (Querist) 27 May 2017
Thanks sirs for your valuable guidance.

Please see points and give us a solution.

1. Indian Pvt Ltd company(x) is a subsidiary of US Law firm (y)
2. Y has been sold to Z
3. X has liability of 3 months salary, PF, tax, rent, electricity, vendor payments.
4 X has contract with Y for its services to Y and Y defaulted payments to X.

How Y or Z will be liable to pay dues to X.

Since Y and Z are registered firms in USA.

Thanks,
Raja

Guest (Expert) 27 May 2017
Forget about x, y, z or non-payment of electricity dues by your company. You have nothing to do with xyz or rent & electricity dues, etc., if the case pertains to non payment of salaries to employees.

In that respect, better apply to Company Law Board for winding up of the company on account of its failure to pay the salaries to its employees, before the US company CEO shuts down the subsidiary Indian company.

In addition,you may send complaint to the EPFO for recovery of PF dues and the IT Department for recovery of IT TDS dues.

When the company would be in the net of the Company Law Board, EPFO and the IT department, the CEO would not be able to shut down the company unawares at his discretion without clearing of the outstanding dues of the company.

ramesh (Expert) 27 May 2017
If you find your employer has not deposited the deducted PF with the trust or EPF, you can file a complaint with either RPFC or a criminal case against your employer with the police or complain to the chief vigilance officer appointed by the labour ministry. You need to produce a copy of your salary slip to show the deduction.
I agree with PSD sir's advice.