• Delay in paying salaries and reimbursements for last few months

Respected lawyers,

Seeking advice from anyone of you with regards to laws in India and any suggestions on what can be done in my matter. 

I am an employee residing in Mumbai and working as Business development Manager over last 9 months with a Pvt. Ltd company which is headquartered in Bangalore, registered in Chennai. The company is in business of marketing using technology and was a start up company that raised funds through other investors (not Pvt equity). They have never shared with the employees any accounts or balance sheet reports ever. They have staff in other 3 metros of totalling to another 10 people. 

The company has paid salary always post 10th day of the month and sometimes around the 20th day of the month for previous month. Rarely in one case they have paid in the first week of the month, rest all has always been delayed. However starting 2017, they have just stopped paying. Every month we just wait for our monies to be credited which is also way to late, however now has reached the limits! 

They have paid my Dec 16 salary on 30 Jan and till date i have not received salary and other expenses reimbursements for January and February 2017. On writing emails and messages to the CEO by self and VP of my company too, there has been no response and does not even answer calls. There has only been one response in January which was when asked for salary of December 2016 that due to some RBI compliance, payments have been stuck and that is why delayed. Same thing was replied two days back when asked for salaries for Jan and Feb 2017. We are 3 people in a team in Mumbai and none of us have been paid.

We do not know if staff in other cities have been paid, however the seem to be fine with not getting paid since no body talks about it with us here. 

This is getting really frustrating and feel helpless since we cant even go talk face to face since CEO is based in Bangalore. My parents are senior citizens and dependant on my income. My income from salary is Gross 1 lakh a month which means a considerable amount is pending to be received. To top it all, they are organising a luxury event in another city for 4 days for which they are main sponsors and has put in approx 20-25 lakhs in organising same in mid march. This is what is not understandable and feel disgusted since they don't pay us but have money to do a luxury event? 

The employer has cut TDS every month, but not deposited yet with the CBDT. On asking same, he says will be done before end of March (dont know how true that is).

Seek your urgent guidance in this matter to know what one can do since my colleagues and me are based in Mumbai and office is in Bangalore / Chennai!! 

Appreciate your help and feedback.

Regards,
CEE
Asked 7 years ago in Labour

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5 Answers

1) issue legal notice to company to pay your salaries for month of January / February 2017

2) if company refuses to pay file winding up petition against the company

3) in the alternative file summary suit under order XXXVII of code of civil procedure code

4) search for alternate job as there is no future with the company

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

you can issue legal notice from Bombay

2) winding up petition has to be filed in Chennai as regd office of company is in Chennai

3) summary suit can be filed from Bombay as you are working in Bombay office

4) legal fees vary depending upon lawyer engaged by you

5) time taken for disposal would depend upon pendency of cases in court.

6) you can get interim orders within one year

Ajay Sethi
Advocate, Mumbai
95221 Answers
7612 Consultations

5.0 on 5.0

An employee cannot work or remain with the company employed without being paid monthly salary for more than two months continuously.

You should make a representation in writing by registered post to the top management of the company venting out your grievances and hardships due to this delayed salary payment and all other issues.

You can ask him to intervene and address the grievances immediately or else there is no use of working with the company without salary.

If you dont get any response for this representation you may think about initiating legal process for recovery of your salary as well as TDS details.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

Could you please advice the total time taken for the entire process from filing to getting justice in this matter? How long will i have to wait? Also the approx. total costs involved in the entire process including lawyer fees, etc.?

First you initiate process from your side, exhaust the remedies locally and after that you can serve legal notice.

The lawyer's fee will be intimated by the lawyer who you would engage.

And would i need to visit Bangalore / Chennai for hearing or will he have to visit Mumbai? How does that work,

You can file a case in Mumbai itself, no need to travel to Chennai or Bangalore.

T Kalaiselvan
Advocate, Vellore
85422 Answers
2239 Consultations

5.0 on 5.0

1. Initiate the legal process by serving a lawyer's notice to the employer to release your salary.

2. If the notice from your lawyer also proves futile then a civil suit for recovery of money in the competent civil court is the only remedy.

3. It will take around a year or thereabout for the case to reach anywhere close to conclusion.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

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