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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
759 votes
As a partnership firm under the Indian Partnership Act, 1932, the business does not possess a separate legal identity distinct from its owners. Consequently, all partners carry unlimited joint and several liability. This means that if the firm's assets are insufficient to cover outstanding employee salaries, your personal assets can legally be attached to recover the remaining dues. You may connect for a detailed legal consultation
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Advocate Anubhav Kathuria

Adv. Anubhav Kathuria

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Answer #2
512 votes
there isn't much you can do in order to avoid not paying outstanding salary. however if you genuinely do not have the funds to pay outstanding , you can declare for bankruptcy. partners are personally liable for debts incurred by partnership firm. so that makes you liable as well.
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Advocate Kunal Seth

Adv. Kunal Seth

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Answer #3
939 votes
Hi...under whIch act was your firm registered ? It will make a big difference If it was registered as an LLP . Was the settlement with the employees formally executed ? If yes then you can enforce it.
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Advocate Kashu Shubhamoorty

Adv. Kashu Shubhamoorty

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