Companies that are able to pay employees deserving beneﬁts should be made to pay strictly. It is found, in our study, some companies with enough capacity refuse to pay even a rupee, set aside what they deserve, even in the case of those who superannuates after many years of service. Let not this ruthless action be a kind of ease of doing business.
Mr. Babu had been working for 28 years with Mumbai based business group which is engaged in the media and entertainment business before superannuating in July last year. Over the years he was rolled through eight of the group companies, indeed for promoters’ strategy of jumping the labor rules that most of the mid-sized company promoters habitually do.
They want to avoid time-to-time liabilities on employees under the applicable Labour Rules.
Recently, one could see some group companies used to cajole employees of lower cadre to “sign papers” which would make them director of group companies. That might sound wonderful immediately. Such employees had no option but to bow to the naughty “promotion” that the promoters offered.
Mehul Choksi’s case threw some lights on how one of his hapless employees was made a scapegoat by making the director of one of his shell companies, which ﬁnally defrauded Punjab National Bank (PNB). The employee was arrested and made to ruin his life, staring at the future uncertainty. Dubious promoters ﬁnally escape by hiring a battery of lawyers, though they do not deserve any amnesty.
Employees who are made scapegoat are usually honest and sincere with their works, while crooks are sacked in no time. Such honest employees are more vulnerable to cheating and fraudulent management practices.
Many of the employees are compelled to go by illegal methods to ensure their survival – or the last option to remain in business. Such employees should not be held responsible for the foul, but the promoters, who force their employees to do illegal things.
Often, such employees calling them executives, are forced to take the ruthless decision of sacking fellow employees by the management, Mr. Babu shares his heart-breaking moments. Stingy promoters, while making themselves super-rich, do not want to raise an employee’s salary when that is due, even when calling them executives, senior officials, managers, etc.