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Suraj L Vaswani (Head-Corporate Relations)     26 April 2011

Salary not paid in time

I'm working with a institute at Pune for the past 6 months; however the institute does not have a fixed date of disbursing salaries to its employees.  The institute has an approval of AICTE.

Our salaries happen to be disbursed between 12th & 18th of every subsequent month for the previous month.  We, all, have family who are dependent on us for the basic necessities of life, apart from the utility bills, children school fees, books, daily chores expenses, etc., to be incurred mostly at the beginning of every month.

This month we are yet to receive our salaries for March 2011 and the Management is unwilling to communicate a fixed date of disbursement.

Most of the employees seem to be very passive about the issue & some of them are passively aggressive fearing losing their jobs.  What can be done in such situation?  Do we have any legal options?

Can we not stop this nuisance of not having a fixed date of salaries to be disbursed every month & enforce it?



Learning

 5 Replies

Kumar Doab (FIN)     26 April 2011

The salary should be paid by 7th of the next month. Salary of March should have been paid by 7th of April. Surprisingly it is not paid till 26th April.

How is the salary paid:

-bank Transfer

-cheque ( current date or back dated). Do you sign receipt with date.

-cash. Do you sign rceipt with date.

Collectively you may approach the management and give gentle reminder.

The workmen in the institute can complain to labour Inspector.

Some one shall have to bell the cat.

 

Suraj L Vaswani (Head-Corporate Relations)     26 April 2011

Thank you Kumar for your prompt reply!

Our salaries are paid through bank transfer. 

Collectively no one wants to approach the management fearing losing their jobs, however; today afternoon, I approached the CFO.  He too did not responsibly give any commitment of date of the disbursement.  Instead, he gave me a reason saying that the institute is awaiting INR 40 crores from the State Government and our people are in their office/s to pressurize them.

I also sent a mail to the Director of the institute.  He too is yet to reply my mail.  When it comes to money issue, people tend to ignore or avoid it.

Same is the case with the workmen.  They too fear losing their jobs if they approach the Management even giving a gentle reminder.

Grateful, if you could suggest any other way to resolve this?

 

 

V. VASUDEVAN (LEGAL COUNSEL)     26 April 2011

If the reasons are genuine, would be worthwhile to cooperate with the Management for a while and suggest ways and means to improve the financial health of the organization. However, if it is  a ploy for exploitation, the team should unitedly approach the management for a fair deal.

Vasudevan

Kumar Doab (FIN)     26 April 2011

Learned Mr. Vasudevan has given his valuable suggestion. You may follow the advice.

Since the salary is disbursed by bank transfer, which shall confirm the date of payment and hence you have the evidence that there has been consistent delay.

You are at a senior position and hence you feel responsible to represent to the management.

Probably your KRA's include develop new accounts and maintain rapport and relations to further the business of the organization.

Do your level best to support the management and the best support by employee is increase in business and profitability. Thus the employee can grow with the organization and can increase his/her market value.

Such employees have eyes and ears of the management and their representations are considered.

Such workers are visible to the competitors and are handpicked.

If you are being exploited and you have the option of collectively approaching the management and if there is no reprieve in sight you all can show all your documents to your service lawyer and protest under legal advice.

Please note that, the private companies can single out the employees in front, and initiate penultimate and damaging action to deter other employees. Be smart and use persuasive, negotiating abilities and manage the situation.

Suraj L Vaswani (Head-Corporate Relations)     27 April 2011

I acknowledge & respect your views; however I strongly differ from it.  I've been consistently performing beyond expectations of the Management; however the Management does not seem to be professional enough also to communicate to its employees that this time the salary is delayed for x, y, zee reasons & would be paid on so & so date...

Additionally, I've approached the CFO, the Director & the Dy. Director about the same.  However, they too are non-committal of the date of salary disbursement.

Mr. Kumar, this is not the only institute in Pune who does not pay salary on time and this has become a norm of the education industry.

Being handpicked by another competitive education industry would not be a resolution to this issue.  I'm mainly concerned of how do we stop this nuisance in the education industry as a whole in Pune.  Employees are being taken granted of due to their extreme passiveness due to fear of loss of their jobs.

Hope I am clear on this now.  Grateful, if you could or Mr. Vasudevan suggest suitable measures to tackle this.

 


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