Prakash Xavier (HR) 31 May 2016

Employer not paid salary

I am working in a in a startup firm based out of Chennai, The Management has stopped paying the salary for the last 3 months to many. Many of them who were asked to leave were promised of salary but still even that is not paid. The PF that is deducted is also not remitted and now it seems that the company is cheating. The Management pays salary to very few of their choice. 70% of the people are yet to get the salaries. The management says that the business is not running well hence we have delayed it. Can you please suggest us on what to do?

Reply Follow

2 Replies

Ritesh Maity (Labour Law Advocate) 31 May 2016

For salary, it is compulsory to pay the salary within the 7-10th of the next month. If salary is not paid, please demand the same in writing. Employer cannot delay in payment of salary on the ground that "business in not running well". You can send notice/ legal notice demanding the outsanding salary. If not paid, then you have to approach legal forum/ court to recover it.

If PF is deducted from the salary, but not deposited before the PF authority, then it attacts the provisions of penal offence. For this, you can directly write to the PF commissioner.

Kumar Doab (FIN) 31 May 2016

Act ASAP. Before the employer says he does not have assets, penny and fiiles for closure or escapes.

All affected employees may join hands and join employee's/trade unions.

There are many for IT/ITeS sector too.

Approach: Inspector appointed Tamilnadu Shops & Estbs Act, Payment of Wages Act, O/o Labor commissioner, RPFC in PF office, ESIC jurisdictional office

Lodge complaint us/ 406,420