Legal Question in Employment Law in India

I worked for a company which showed a loss during May-June 2012 and the owners sold that company to someone without settling the account (salary and allowances) of the employees.

Now the new owner is saying that he is not responsible for any liability of the company caused before they purchased the company and the old owner is saying that he is not liable to pay as both the assets and liabilities of the company also get transferred to the new owner, once the company is sold.

Please clarify what to do?


Asked on 2/23/13, 9:19 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

23.02.2013

Dear Sir / Madam,

The new owner who took over the Company is responsible to pay the salaries of all the employees since he has taken over all the assets and liabilities of the previous owner. All the staff must collectively issue a letter to the new Company MD requesting immediate settlement of outstanding salary dues, failing which the matter may be reported to the Registrar of Companies for violation and the Labour Commissioner.

Regards,

FCA Prashant Chavan

Mumbai

(You can also mail me for any further on-line advice at [email protected])

Read more
Answered on 2/23/13, 10:09 am


Related Questions & Answers

More Labor and Employment Law questions and answers in India