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I have recently joined an middle -size organisation about 2 months ago. The employer has not yet paid the amount of my first month. The salary cycle is from 25th to 25th of every month, with a week salary in advance. Its going to be 2 months in next 4 days the employer has not paid a single penny. Since the HR has resigned the month I joined, I have asked the accounts dept. regarding the same, they didn't provided any appropriate response. I have also asked my manager twice regarding the same. He made some commitments regarding the date the salary will come, but that was untrue. Please help, What can I do about it?

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    What country are you in? – Hilmar Mar 21 '14 at 5:56
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    Is it just you, or have your colleagues had similar experiences? Knowing whether you've slipped through the net, or there's systemic incompetence / financial difficulty, will help determine what's the best line to take. – Julia Hayward Mar 21 '14 at 9:13
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    Yes, ask your colleagues if they have the same problem with payments. It can mean the difference between finding a mistake in the payroll system and the entire company being entirely in a bad financial state. – Chris C Dec 15 '14 at 21:11
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Red light

Actually, your title is incorrect bcause it's not late payment, but no payment.

Assuming the company is not a scam (which happens, but more often by temporary jobs on field), it's a signal of huge financial problems. You were promised to get money on some date, and probably they've meant so, but they were unable to do that.

You should immediately talk to other workers about the issue and talk to the management, and make sure it's a serious talk. If your company will go insolvent, you may never see your money! (the state will collect unpaid tax first, and workers will be paid only if anything is left). While there's no guarantee you'll become money they already owe you, it's still better than working effectively for free the next few months.

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From the details in your post, I'm guessing the company doesn't have enough money to meet pay-roll. I would do the following.

Either discreetly visit other employee's desk at the office, or contact them via personal email/phone to determine if they have not been paid. If they have not, round up as many as you can quickly. If your at the office, get 8 or 10 people together. If you're not, as many as can be rounded up in an hour. Visit HR (or the CFO if HR has quit), as a group and explain the situation.

Be polite to the CFO. Hopefully the company has money and you will all get paid (unlikely), or he or she will find some money to placate a large percentage of the staff (still kinda unlikely).

From here you have 2 options. Option 1 is simply to look for another job and not show-up again for work. Do not formally resign as you can answer that you are currently employed during interviews, and formally resigning will make harder to gain access to the building so you can keep the pressure on HR/CFO.

Option 2 is to get as many employee's as possible to "walk out" until they are paid. If you can get the majority of the "rank and file" folks to walk out, you've essentially shut-down the company. I don't give this a high probability of working either as I don't think they have money, but you may be able to bargain for a reduced salary, which will give you some breathing room until you find a better job.

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Act now, not later

You should discreetly ask others if they are having problems similar to your own. Typically asking doesn't need to happen. When someone doesn't get paid they tend to be VERY vocal about it. (still I'd ask around)

You might also want to seek legal counsel in case you have protections should this end badly.

I'm alone

If you're the only one with this issue it's best to make it clear, you've been working and have yet to get paid. You've been promised this would be resolved and it hasn't. You want to continue working for the company, but until you're paid you can't reasonably continue working.

You might be fired at this point, if that happens they probably had no intention of paying you and you were getting screwed. If it's been one huge mix up then they'll try to rectify it ASAP.

You should also start job hunting now. A lot of things don't add up here if everything is on the up and up, you have to protect you. If they can get square with you and convince you everything is fine just the HR departure left things a mess, no problem stick around. Anything short of that... I would not stay if were me, just too many red flags.

If there are others

In the event you are not alone this is a HUGE issue! It's also likely a sign your company is in dire straights and can't make payroll! (which is arguably the single most critical operating expense, you fail to pay your people bad things happen, simple as that.)

No matter what plan of action you take from here one thing you should do is start pursuing a new job. Your company is likely on it's last limb before imploding which leaves you unpaid and pissed off. (unless you're REALLY lucky)

Generally speaking things get to this point in one of three ways.

  • Management is incompetent and were blind sided to find their piggy bank empty
  • Management is aware of the issue and informed the staff things are tight and is just trying to survive the slow season.
  • Management is aware of the problem but trying to keep it on the down low

Based on what you've said I'd guess the third with a small chance it's the first. If it's the first probably best to just move on as likely this ship is already beyond saving, therefore; there is no money to pay you with.

If it's the third this means management is probably going to do what they can to save their butts knowing it ends one of two ways. They turn things around and it looks like a payroll "glitch" that was troublesome, or they fail to save this sinking ship and you're left high and dry with months of wasted effort and nothing to show for it...

In the slight chance it's the second... that's a dangerous call with potential... When companies are on their deathbeds and by some miracle manage to climb back into good health those who stick with it tend to do VERY well, however; most of the time when a company reaches this point it's way beyond the point of saving, and once again you lose.

Summary

Take what actions deem necessary to cover your bases and hopefully get paid, but in the way of red flags you've got enough to make a respectable slalom. Probably best to just pursue other opportunities while trying to get whatever compensation you can for time wasted. (hopefully I'm completely wrong and the HR person quitting just caused hell and you're unfortunately just caught in the middle of it)

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