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Non payment of salary and expenses reimbursement
25-Sep-2023 (In Labour & Service Law)
I am a Director with a Pvt Ltd Co having only 5% equity. I have not been paid my salary for over a year and also money that I had put into the company to pay employees and other sundry expenses have not been reimbursed to me. The major stakeholder is now making excuses of not having funds to pay. How and what do you recommend for me to get my dues paid immediately. Thank you.
If you are an employee or a consultant who has been denied his dues, here are some tips on how to recover what is rightfully yours.
UNPAID SALARY
If you haven't received your salary, check with the colleagues and then with the HR. Is it an error or recovery of an amount that you need to discuss? In case of a company-wide issue, pick your manager's brains to figure out if the firm is facing cash challenges. Know that recovering unpaid salary is a long process through the labour court.
Now, you can either stop working or continue in the hope of receiving your salary. Quitting may not be a viable option if you do not have other income. Weigh in the opportunity cost of working without a salary versus using the time to search for a job. Regular delays mean that salary is not a top priority for your employer. So, start polishing your resume because you will need it soon.
PENDING REIMBURSEMENT
What's the reimbursement cycle and your total amount locked in the process? Is the firm paying on time? If the amount is large and there is a significant delay, the company is covering working capital shortfall by getting employees to foot bills. Clear out pending reimbursements and your latest salary cheque and rush to a new employer at the earliest.
UNPAID SALARY
If you haven't received your salary, check with the colleagues and then with the HR. Is it an error or recovery of an amount that you need to discuss? In case of a company-wide issue, pick your manager's brains to figure out if the firm is facing cash challenges. Know that recovering unpaid salary is a long process through the labour court.
Now, you can either stop working or continue in the hope of receiving your salary. Quitting may not be a viable option if you do not have other income. Weigh in the opportunity cost of working without a salary versus using the time to search for a job. Regular delays mean that salary is not a top priority for your employer. So, start polishing your resume because you will need it soon.
PENDING REIMBURSEMENT
What's the reimbursement cycle and your total amount locked in the process? Is the firm paying on time? If the amount is large and there is a significant delay, the company is covering working capital shortfall by getting employees to foot bills. Clear out pending reimbursements and your latest salary cheque and rush to a new employer at the earliest.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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