Payment of salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 November 2015 Dear Sir,
Of late i have come across a situation as described below:-

My brother is working in a proprietorship company running on overdraft. This month they have planned not to pay salary by cheques but to pay by cash not booked in the accounts since the profit margin is dropping as per the bank requirement. My query is
Can they do things like that legally.
If not but still continue with the childish idea what shall be the consequences as per as accounts is concerned. There will no salary for a particular month but company was open.All the employee have worked. Sales, purchase, all other financial activities will be normal but There will be no salary hence no statutory payments i.e. PF, ESI, P.Tax for that particular month and everything shall be normal(hopefully) from the next month and so on. Will not Statutory authorities ask a question of such missing period and if asked how it can be replied. If any employee inform about such malpractice to the authority how can they escape. Look forward to a valuable discussions from experts highlighting other complications which i have missed out.

Thanks & regards

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2015 Dear Sir,

I am little disappointed that no one has replied so far. Hope well thought discussions will pour in shortly.

Thanks & regards