Salary dues
Querist :
Anonymous
(Querist) 05 January 2010
This query is : Resolved
Dear Sir,
This issue is regarding the employment and salary outstanding dues.
I am working with one of the group companies in Pune, Maharashtra. Under the parent holding company there are various business verticals controlled and operated by other sister companies. I am working with one of the sister company and transferred from one company to other as per the group transfer policy with same employment terms and conditions. I have 7 months total outstanding from these various companies together as I was transferred leaving some dues behind. Company orally promised me to pay the same soon but that day never came. Now the current company on whose pay role I have been appointed continued paying me from the day of appointment but company and its management is silent about the past dues. I requested them several times and conveyed them about the financial situation and family troubles but I got nothing but the oral assurances that they are trying to pay the salary dues.
In October 2008, 60% of the employees were retrenched with two months salary outstanding, whereas that time I received transfer letter to shift to other working group company. I got transferred again on the role of current company 3 months back with regular payments on this role. Company again promised me clearance of the dues but without any commitment of any particular date.
Due to financial problems and consequent family troubles I requested them several times to clear dues which went unheard. So instead resigning from the company I informed the management that I am preceding on indefinite leave till I got some financial support from the outstanding dues of my salary, to which they refused to sanction.
I have doubt about the company’s intentions to pay the dues, as till October 2008 they have not paid the ex employees a single penny although they assured the same through various letters to those employees. More over Company concentrated on statutory compliances and statutory dues than employee dues. So this way I am also doubtful that they will abscond or they will skip the employee dues. There is only one company now which is working but not earning anything since its establishment since 2005. Company is defending the various tax issues, TDS and PF issues. Few more facts such as, some of the vendors have filed winding up petitions against our various group companies. And, company has no such assets to sell in its name as everything was on rent. One of the group company based in Dubai provided these companies with funds where the business of that Dubai based company is not known to us. No salary sleeps to any employee since a year.
The directors and management of all the companies is one and the same.
In this situation, please guide me on the following points:
1) What are rights of employee’s (ex/current employees) in case of winding up?
2) Are there any forums or institutions who can take cognizance of such companies which are just operative and loss making?
3) In this situation should I resign or should I continue the employment and proceed against them legally?
4) What are legal remedies for employees? And is there any time limitation for that?
5) Is there any good lawyer in Pune who can handle the issue as there are many employees who want to proceed legally?
Please guide me.
Raj Kumar Makkad
(Expert) 05 January 2010
1. Employees (both types) have preferential right of salary arrears in case the company is wind up.
2. High court or Comapany Law Board.
3. Remain in job and start legal proceeding against the company.
4. Employees have every legal right to recover their dues of salry within 3 years of accrual or acknowledgment received from company.
5. Sh. M. P. Bendre Advocate, Pune is one of those lawyers who can deal your case vigorously and promptly.
Querist :
Anonymous
(Querist) 06 January 2010
First of all, thank you very much sir for replying the queries which is of great help to us.
Our group is governed by bombay shops and establishment act, so if i file a recovery suit/winding up petition, will that be helpful because there is nothing in the name of company (company assets as everything was on rent). And whether the directors will be liable in their individual capacity to pay us.
please guide.
