Good Evening All respected Members, I would like to seek advice regarding my newly joined startup. Hope I could find the solution from this learned group.
I joined a Startup Company with approx. 20 employees in Gurgaon in December 2020 as HR Manager. In January 2021, The director who has the monetary control is not releasing the employees' salary. He asked me to drop an email to employees stating that the salary would be released by 1st march 2021. Now they are refusing to dispatch the salary. Please suggest how should I handle employees in this situation, Employees are after me for their salary and I have no answers.
From India, New Delhi
I joined a Startup Company with approx. 20 employees in Gurgaon in December 2020 as HR Manager. In January 2021, The director who has the monetary control is not releasing the employees' salary. He asked me to drop an email to employees stating that the salary would be released by 1st march 2021. Now they are refusing to dispatch the salary. Please suggest how should I handle employees in this situation, Employees are after me for their salary and I have no answers.
From India, New Delhi
Advise he employees to file a claim u/s 33C(2) before Labour Court. Once summons are issued by the Court, the employer will release the salaries of their workers. - S.K. Mittal 9319956443
From India, Faridabad
50From India, Faridabad
As per the post, the salaries to all the employees remain unpaid for the month of January,2021 as on the date of uploading the post. Though the Director most probably the paymaster of the company tries to assure that it would be paid on 1st March,2021, the salary for the month of February,2021 also becomes due on 07-03-2021 and it is not sure whether it would be paid on the due date.
Of course, filing claims u/s 33-C(1) of the ID Act,1947 with the appropriate Government or u/s 15 of the PW Act,1936 before the authority for recovery is the legal options available before the employees. But, the employees cannot repeat the same thing for the recovery of their salary every month. As the HR Manager, the poster in his official capacity to ensure peaceful industrial relations, should appraise the Director of the consequences affecting the reputation of the organization both internally and legally and request him to take some expeditious steps to disburse the pending salary as assured simultaneously ensuring prompt payment of salary in future. He should also pacify the employees to bear with the delay in stead of advising them to go in for recovery proceedings. Better, he should request the Director to directly address the employees through a special meeting in order to build confidence in themselves.
As an integral part of the management, the HR manager is expected to act as a bridge between the employer and the employees at times of crisis like this and ensure cordial industrial relations.
From India, Salem
Of course, filing claims u/s 33-C(1) of the ID Act,1947 with the appropriate Government or u/s 15 of the PW Act,1936 before the authority for recovery is the legal options available before the employees. But, the employees cannot repeat the same thing for the recovery of their salary every month. As the HR Manager, the poster in his official capacity to ensure peaceful industrial relations, should appraise the Director of the consequences affecting the reputation of the organization both internally and legally and request him to take some expeditious steps to disburse the pending salary as assured simultaneously ensuring prompt payment of salary in future. He should also pacify the employees to bear with the delay in stead of advising them to go in for recovery proceedings. Better, he should request the Director to directly address the employees through a special meeting in order to build confidence in themselves.
As an integral part of the management, the HR manager is expected to act as a bridge between the employer and the employees at times of crisis like this and ensure cordial industrial relations.
From India, Salem
Dear Friend,
The present crisis in your organization is due to failure of management, the failure for autocratic nature of the director.
Definitely employee will come to ask you regarding the payment of wages but not to the director or other managers. Being a HR manager you have to handle the situation. Tell them that the information regarding payment circulated to you as per the direction of the director. Now the director is telling, the fund he was expected from some source before 1st March could not happen. So the wages can only be disbursed on availability of fund and management is trying hard. You convey the message of employee to the director that they would go for legal recourse for non payment of wages.
Do not act on verbal direction, if at all doing so please quote the line: I have been instructed by the director to inform you that the payment would be done on date.......... copy mark to others in CC all DH and keep director in BCC.
Your role in this matter to divert the employee for a deferred date & ask them to go legal against you and convince them you are not one to make their payment if they made you hostage. You have to be little diplomatic, you should not direct employee to go against the company.
8093097934
From India, Mumbai
The present crisis in your organization is due to failure of management, the failure for autocratic nature of the director.
Definitely employee will come to ask you regarding the payment of wages but not to the director or other managers. Being a HR manager you have to handle the situation. Tell them that the information regarding payment circulated to you as per the direction of the director. Now the director is telling, the fund he was expected from some source before 1st March could not happen. So the wages can only be disbursed on availability of fund and management is trying hard. You convey the message of employee to the director that they would go for legal recourse for non payment of wages.
Do not act on verbal direction, if at all doing so please quote the line: I have been instructed by the director to inform you that the payment would be done on date.......... copy mark to others in CC all DH and keep director in BCC.
Your role in this matter to divert the employee for a deferred date & ask them to go legal against you and convince them you are not one to make their payment if they made you hostage. You have to be little diplomatic, you should not direct employee to go against the company.
8093097934
From India, Mumbai
Ya sir
Frequently receiving this type of problems particularly during and after lockdown .
Every employer generally knows he ought to pay salaries to his employees every month irrespective of his financial position.
The conclusion point is... Is he refusing to pay salaries... Or telling his inability to pay salaries due to heavy loss or in debts.
Accordingly the workers will choose labourcourt for redressal by stoppage of work in company or may continue by protest.
Normally your role is precised if the employer releases funds then you will pay with auditor as usual. If not releases without showing believable reasons to anyone, you can't give any assurance to employees. Better silent.. The employees choose legal remidies. You can advise them to maintain peaceful
Atmosphere in the company for better days to come.. Not to create law and orderorder problem..situation.. diverts to some other ways.
From India, Nellore
Frequently receiving this type of problems particularly during and after lockdown .
Every employer generally knows he ought to pay salaries to his employees every month irrespective of his financial position.
The conclusion point is... Is he refusing to pay salaries... Or telling his inability to pay salaries due to heavy loss or in debts.
Accordingly the workers will choose labourcourt for redressal by stoppage of work in company or may continue by protest.
Normally your role is precised if the employer releases funds then you will pay with auditor as usual. If not releases without showing believable reasons to anyone, you can't give any assurance to employees. Better silent.. The employees choose legal remidies. You can advise them to maintain peaceful
Atmosphere in the company for better days to come.. Not to create law and orderorder problem..situation.. diverts to some other ways.
From India, Nellore
Thank you so much Umakanthan Sir,for taking out some time to address this post. I have less hands on experience in HR functions. I learn a lot from here.Such a great help from you.
From India, New Delhi
From India, New Delhi
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