Employer run out of the Country by not paying Salaries
Querist :
Anonymous
(Querist) 25 October 2009
This query is : Resolved
Dear friends,
One of my friend company employees are facing following challenges. I request you to kindly suggest them the best course of action in this crisis, as our suggestion has an impact on 800+ families.
It is a software product company and the management run out of the country without paying salaries to employees past 10 months. Since employees doesn't have unity among themselves, they played very smart and escaped out of employee liabilities, creditors dues and govt dues.
Many of the documents are missing and no one knows what is happening in the company as the control is totally with 2-3 people in the management and they absconded leaving all liabilities. The properties are on lease and not paying lease rent also. They sold all assets and rest of the assets like chairs and tables will give only nominal values.
Recently, it came to know that they want to start another company through friends/relatives (with the diverted funds) initially and once this problem is sorted out (once peole forget this case), they want to come and join in that company at a later date.
Whom the complaints to be made against those people so that they should not do business within this land and cheat people again.
Can anyone suggest pros and cons of taking over of the company management by employees and run the company by talking to existing clients to provide support and meantime get an investor to run the business.
What will be the legal complications and precautions to be taken by employees in such situation. Even this looks hypothetical, if anyone come across such situation or if you believe a better suggestion, kindly suggest.
Thanks in Advance.
Vidya,
Bangalore.
adv. rajeev ( rajoo )
(Expert) 25 October 2009
No other remedy accept filing the criminal case aginst the persons, because it amounts to cheating.
U cannot seek remedy in the labour court because those persons you wont get easily. They have no property in such cases it is very difficult to take civil action against them.
Adinath@Avinash Patil
(Expert) 25 October 2009
file criminal complaint/fir police station,against employer
PJANARDHANA REDDY
(Expert) 25 October 2009
GIVE A COMPLAINT IN CONCERN POLICE, AND TRY TO ISSUE RED CORNER NOTICE BY EXTERNAL AFFAIRS TO THE ALL CONCERN MGMNTS..
Shashikant V. Patil
(Expert) 25 October 2009
I do agree with Ld friends to file the criminal complaints in the Police Station against the said employer. Providedly you all employees also file a case in a labour court and also with labour commissioner in respect of your salary,PF gratueties. Therefore, court can also give a proper order to attach their properties of employer to revcover your dues.
N.K.Assumi
(Expert) 25 October 2009
In addition to the above, I suggest you obtain Mareva Injunction from the Civil Court against the Company.
Querist :
Anonymous
(Querist) 28 October 2009
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Dear Friends,
Thanks to you everyone for giving suggestions on the issue. It is true that either they don't have properties in India or they might have acquired in benami names.
Also, can anyone tell me is it the MD/CEO of the company only responsible or other directors also responsible for employees salaries due. Because, we can catch few other directors of the company but they are independent directors and not part of day to day affairs of the company.
Suppose, if we catch the promoters and if they say they pay but they don't have money to pay right now and have no intention to default the payments and once they get the money by getting a new investor/selling some products etc (which may not possible), can they escape from their responsibility and subsequent consequences of not paying salaries(for the time being).
The most worrying point is employees are suffering for EMI defaults and loss of job etc. Can we ask the employer to give guarantee on behalf of employee for the dues pending to banks etc., is it possible ?
Vidya
Bangalore.
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