• Company and its Director not paying my salary and gratuity

Hello I am K K Mishra working in a Mumbai based company since 15-1-2009 as a Head - Accounts & Finance (current position). When I have not received my salary from May & Jun 2015 then on 10th July I directly spoke (verbally) to my direct reporting boss (Founder Director and CEO) as neither you are not paying salary on time nor you are asking me to resign (may be in good selves), so I am tendering my resignation and my last day will be the 31st July 2015. He said ok on that day. 

So i have written a resignation letter with request for payment of my dues (May, June & July 15) with Gratuity amount dated 10th July 2015 and sent a mail to him on 21st July 2015 and hard copy put on his table. When he came back next day in office, he told me that i will not relieve you on 31st July 15 as it may take another 1 or 2 week. I told him that it is very very difficult to me to run my household expenses i can't work further for free then he said, he'll try to make payment at least till June 15 salary in this or next week.

Today also there is no symptom of paying my salary as well as others (currently 4 employees are working) as he has started to work with other company on commission basis (means diverting funds) and depicting that there is cash crunch in the company. And whatever funds comes into company's bank account he transfers same to his account.

Brief about company:
1. When I joined company was merchant exporter and in 2010 planned to enter into manufacturing of its exporting goods. Plant started in 2013 and incurred huge loss and halted its production process in January 2015 and running its merchant trading business.

So in view of above I sincerely seeking your valuable advice and suggestion for further action and would like to inform you that currently my financial position is very tight (borrowing money from other to run my household expenses).

Please advise me.
Asked 2 years ago in Labour from Mumbai, Maharashtra
 it i s unfortunate that you are undergoing such situation.
Now there is no point in waiting ,look for another job.
send your employer a legal notice asking him to pay your salary dues with interest and issue a reliving letter.
Your option is to send him a legal notice and file a suit for recovery of arrears.
For practical reasons you need to find your survival so leaving the company is urgent and  another job first. 
Thresiamma G. Mathew
Advocate, Mumbai
1510 Answers
134 Consultations

5.0 on 5.0


1) It is certainly a very sad situation you are in as you are without a job now and the arrears are pending with your former employer. You need to look out for another job immediately as you wait for the arrears to be recovered.

2) Your legal option is to send the CEO of the company , a legal notice demanding the arrears to be paid with interest within a stipulated time.

3) If the employer/CEO fails to pay up the arrears as demanded you will have to file a suit for recovery of arrears. The decision on the suit can take time if the employer is not willing to settle the matter. Therefore find an employment for yourself in the meantime.
S J Mathew
Advocate, Mumbai
2229 Answers
110 Consultations

5.0 on 5.0

1. Have you taken acknowledgement of receipt of your resignation letter?

2. Are you still working with the company or left it by this time?

3. Is payment of your salary is only pending or all the employees have not been paid?

4. However, leave the company now if you have got another opening and collect evidence of your working up to the date of your leaving,

5. After that send a legal notice to your employer asking him to pay the arrears and gratuity within 10 days,

6. If he fails, lodge a complaint case before the local labour commissioner,

7. You can also file a Recovery Suit but it will take long time to be disposed of.
Krishna Kishore Ganguly
Advocate, Kolkata
18160 Answers
438 Consultations

5.0 on 5.0

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