what will you do in such conditions? Pl response.

How can employees work if they do not get their salaries? I would not lie to the company but would surely would make it a point that their problems are sorted out at the earliest.

If the condition is relevant to a company and the contractor within the territory of Indian state then there is a provision and safeguards to take care of such a situation. Before the company awards a contract to any contractor it enters into a written agreement. This agreement not only indemnifies the company against any impending loss incurred due to negligence of the contractor but also ensure that the clauses enshrined in the 'Payment of wages act No. 4 of 1936 does not stand violated. Under section 20 of this act the specific penalty for violation of the act is laid down. Penalty for offenses under the act is spelled out at item 5 and 6, which stipulates, "(5) If any person who has been convicted of any office punishable under this Act is again guilty of an offence involving contravention of the same provision he shall be punishable on a subsequent conviction with imprisonment for a term which shall not be less than one month but which may extend to six months and with fine which shall not be less than five hundred rupees but which may extend to three thousand rupees. Provided that for the purpose of this sub-section no cognizance shall be taken of any conviction made more than two years before the date on which the commission of the offence which is being punished came to the knowledge of the Inspector. (6) If any person fails or willfully neglects to pay the wages of any employed person by the date fixed by the authority in this behalf he shall without prejudice to any other action that may be taken against him be punishable with an additional fine which may extend to one hundred rupees for each day for which such failure or neglect continues." Provisions laid down under the agreement and the "payment of wages act" are sufficient to enforce obedience.

Basicly it is like this "NO PAY, NO WORK"! In my country there are labor unions that handle that sort of thing. They represent the workers and in this case the workers would walk off the job until they got paid. The contractor usually comes up with the money. Usually though contractors of large companies are insured in case something like that happened and the union stands behind its members all the way. Sounds like your system is similar to the US's system of "UNIONS"