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Hi
I was working in a medium sized software Co.
However, the co. ran into financial issues, post which they stopped paying salary for all employees from Nov-2012 onwards.
From March/ April\'13 onward they started crediting part salary (capped at 50K)for the prev months. So in Mar \'13, we got part Salary of Nov\'12, in Apr\'13 part Salary for Dec\'12 and so on.
I resigned in June\'2013 with dues (Salary) pending to the extent of 2.5 lacs.
During relieving, the company assured (verbally) that they would clear all outstanding dues with no commitment on the timelines.
To put things in perspective, employees who resigned in Dec\'12/Jan\'13 also are yet to get their final dues.
My question-
1. What is the legal recourse in this situation to ensure recovery of dues.
2. Can a Company continue to operate like this without clearing the o/s dues for all relieving employees?
I think a complaint was also registered with the Labour department.
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Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
Hi
I was working in a medium sized software Co.
However, the co. ran into financial issues, post which they stopped paying salary for all employees from Nov-2012 onwards.
From March/ April\'13 onward they started crediting part salary (capped at 50K)for the prev months. So in Mar \'13, we got part Salary of Nov\'12, in Apr\'13 part Salary for Dec\'12 and so on.
I resigned in June\'2013 with dues (Salary) pending to the extent of 2.5 lacs.
During relieving, the company assured (verbally) that they would clear all outstanding dues with no commitment on the timelines.
To put things in perspective, employees who resigned in Dec\'12/Jan\'13 also are yet to get their final dues.
My question-
1. What is the legal recourse in this situation to ensure recovery of dues.
2. Can a Company continue to operate like this without clearing the o/s dues for all relieving employees?
I think a complaint was also registered with the Labour department.
Community Prime Sponsors
FactoHR.com - Payroll Software with GPS Enabled Attendance, Travel, Performance Management, HRMS.
Talentedge.com "Interactive Anywhere Learning". Executive courses from top reputed institutes like IIM, XLRI, MICA.
Dear Client, Your issue posted have many questions to ask, how did you work for so long without getting paid?? what was the guarantee on which you have served so long and what is the guarantee you expect now?? though all these are personal in nature, let me try to make you understand that the management of the said company is under the violation of PF acts if it is registered under the said act, Yes not paying the salaries and running the organization attracts the penal provisions of the concern labour laws, but if the organization establishes the financial crunch on record then the claims and complaints may not have the same intensity. therefore instead of fighting against the company in your individual capacities for the late payment of salaries and other issues, you are personally advised to meet the management and submit a claim letter detailing all the facts and framing the exact amount which is due to you, let the letter be acknowledged by the management under stamp and sign or send it by RPAD (registered post with acknowledgement due) and request them to give you a post dated cheque for the amount due to you, and accept the said instrument and present the instrument in your bank account on the due date, upon the non realization of the instrument due to the reasons "funds insufficient" and other reasons both the company management and the signatory on the cheque are individually and personally responsible and can be tried under section 138 of Negotiable instrument act. It is definitely not out of place to mention that if the employer did not deposit the PF amounts then you can approach the concern PF office and submit a withdraw form of your PF account, the PF officials will take up the case accordingly.

All the best, just in case you require any support you may contact me on [1] 9010352384 [2] Home >> [3]

Regards

JSR
Dear Client, Your issue posted have many questions to ask, how did you work for so long without getting paid?? what was the guarantee on which you have served so long and what is the guarantee you expect now?? though all these are personal in nature, let me try to make you understand that the management of the said company is under the violation of PF acts if it is registered under the said act, Yes not paying the salaries and running the organization attracts the penal provisions of the concern labour laws, but if the organization establishes the financial crunch on record then the claims and complaints may not have the same intensity. therefore instead of fighting against the company in your individual capacities for the late payment of salaries and other issues, you are personally advised to meet the management and submit a claim letter detailing all the facts and framing the exact amount which is due to you, let the letter be acknowledged by the management under stamp and sign or send it by RPAD (registered post with acknowledgement due) and request them to give you a post dated cheque for the amount due to you, and accept the said instrument and present the instrument in your bank account on the due date, upon the non realization of the instrument due to the reasons "funds insufficient" and other reasons both the company management and the signatory on the cheque are individually and personally responsible and can be tried under section 138 of Negotiable instrument act. It is definitely not out of place to mention that if the employer did not deposit the PF amounts then you can approach the concern PF office and submit a withdraw form of your PF account, the PF officials will take up the case accordingly.

All the best, just in case you require any support you may contact me on [1] 9010352384 [2] Home >> [3]

Regards

JSR
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