Employer terminated all the employees and is yet to pay for salaries for last 3 months
Guest
(Querist) 23 February 2013
This query is : Resolved
Hi,
I used to work for a privated limited company. Last week our Managing Director (who is infact the promoter of the company) all the employees of the company stating that he does not have fund to run the business. We are yet to get the salary for December 2012, January 2013 and February 2013. Moreover we are liable to get the notice period pay for 3 months in case of termination of employees.
In his offical communication addressing to all the employees, our MD has stated that he will try to pay the pending salaries by in phased manner but he is not willing to commit or provide us detailed plan of action to pay our salaries.
Our problem is that MD is not committing any date by which he will make payment of all the employees; which means he can take as much as time he wants.
And by what we know about our promoters, we think that they are intentionally delaying the payment of our salaries (despite we are backed by parent company which is 1000+ crore groups).
We need your inputs on how to get our pending salaires + notice period pay from the promoters of the company at the earliest. Also let us know if there are any rules related to the timelimit for paying the salaries post termination of employees.
Awaiting your response and help on the same.
Thanks in advance.
Best Regards,
JK
Kirti Kar Tripathi
(Expert) 23 February 2013
Whether industry is running or closed legally?
Guest
(Querist) 23 February 2013
I forgot to mention the sector of our business, we are market research company.
We dont know whats the status of the company but as per official communication all the employees are terminated from the company. And since February we have stopped taking new business and we have completed all the on-going projects.So there is no pending or on-going work.
I think we will have to check on MCA's website about the status of the company.
As per my knowledge, if the promoters plan to close down the business, they need to inform local body stating all the dues are cleared.
In terms dues, since the company expanded the business to All India level (i.e. 2011), payment to all the external vendors is pending.
We are not clear till when will he officially shut down the company. The company website and our emails are still working.
Kindly suggest how to deal with this promoter. All the employees are yet to get job and are not paid for last 3 months. Everybody is facing severe cash crunch.
Your feedback is very important.
Guest
(Querist) 23 February 2013
I forgot to mention the sector of our business, we are market research company.
We dont know whats the status of the company but as per official communication all the employees are terminated from the company. And since February we have stopped taking new business and we have completed all the on-going projects.So there is no pending or on-going work.
I think we will have to check on MCA's website about the status of the company.
As per my knowledge, if the promoters plan to close down the business, they need to inform local body stating all the dues are cleared.
In terms dues, since the company expanded the business to All India level (i.e. 2011), payment to all the external vendors is pending.
We are not clear till when will he officially shut down the company. The company website and our emails are still working.
Kindly suggest how to deal with this promoter. All the employees are yet to get job and are not paid for last 3 months. Everybody is facing severe cash crunch.
Your feedback is very important.
Kirti Kar Tripathi
(Expert) 23 February 2013
At present I can only suggest that a complaint should be made by the employees to concerned Labour Office. It is their duty to get the matter resolved.
Guest
(Querist) 23 February 2013
Thanks for the response.
However i want to know 2 things:
1) If we raise complaint in Labour Office, in how many months our issue would be resolved?
2) is there any time frame within which the employeer has to make payment of the pending dues post terminating the employee?
Kirti Kar Tripathi
(Expert) 23 February 2013
Normally a complaint may get resolved within two to three months.
Under the law, the salary must be paid with 7 days from the date it become due.
Guest
(Querist) 23 February 2013
Looking at the Kingfisher Airlines example, we are quite sceptical that the complaint would be resolved soo soon. Despite labour laws neither in Kingfisher's case nor our case, the promoters are paying the salaries withing 7 days of due date.
Do let me the which section should be refer in labour law?
yogesh
(Expert) 24 February 2013
if they are workman as per ID Act then approach to Deputy Labour commissioner office who will issue notices and then may refer to the Labour court for Award..
RAJU O.F.,
(Expert) 25 February 2013
Better approach an advocate of your area who is practicing labour law cases on behalf of employees.
Raj Kumar Makkad
(Expert) 05 March 2013
Serve a legal notice first to the employer and then go to Labour office.
