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Paying the employees due salaries


17-Aug-2026 (In Labour & Service Law)
I have partnership firm by the name of truleads and now my company is closed because of finance issues and we are yet to pay our employees. We have tried to do a settlement because of funds availability. We don’t have enough funds to cover all the salaries so, we have offered them a settlement amount but they are rejecting this. What legal actions I can take to so that I don’t have to pay them full amount and if they file a complaint that we will not impact me and my company . Please guide me
Answers (3)

Answer #1
648 votes
Hi there, in this scenario you shall move insolvency petition before the court for Scrutinising and getting declared insolvent. The rest of the settlement can be done during the insolvency proceedings. It's advisable to contact me and provide more details to assist you better.
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Advocate Ishan Parashar

Adv. Ishan Parashar

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Answer #2
940 votes
partners are personally liable for the partnership firm even though the partnership firm does not have enough funds to pay the employees the employees and hold the partners personally liable depending up on the status of the employee they can file relevant cases against the partnership firm and the partners for recovery about standing news the only way you can escape liability is by declaring bankruptcy
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Advocate Kunal Seth

Adv. Kunal Seth

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Answer #3
614 votes
Closing the partnership or offering a reduced settlement does not automatically remove the firm’s obligation to pay employees’ lawful dues. You should not try to avoid liability. Instead, document the financial position, negotiate a written settlement/payment plan with employees and also connect with me to get details about the proper closure or insolvency process.
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Advocate Rahul Kumar

Adv. Rahul Kumar

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