YepMe Holds Salary of its Employees and Shuts Down Two Major Units- Is this Company heading Towards Bankruptcy?


Last month, the Gurgaon-based YepMe has quietly shut down two of its units – warehousing and quality control and it has fired nearly 30 of its manpower.

But founder Vivek Gaur made an official statement that the move was entirely towards company’s growth, and not because of any financial constraint.

But if we dig deeper, the ground reality speaks of Yepme differently:

The online business company promptly seems to have its HR trimmed after it started outsourcing warehousing and quality audits to third-party vendors in India and the US.


They were told by team leaders verbally. They have been asking for a termination letter, but that hasn’t happened.

-one of the existing employees of Yepme said.

This situation, however, is starkly similar to the events that unfolded at another company (which rhymes with our company in focus, by the way) named, AskMe.

AskMe’s top management kept a lid on the business falling apart, for close to a year. It was never formally announced, but the company was firing teams after teams. Eventually, the entire management went incognito and left thousands of employees without a job and months of pending salary.

Now, why would a registered company like Yepme follow that protocol of action?

It is evident has YepMe has been running in a graph of subsequent losses since quite some time now. So, cutting HR is an evident way to control costs.

But, if a company terminates its employees, they are obligated to pay a full and final set of compensation as per regular Labor and Industrial Laws of the Land.

And to validate the action of this e-commerce business, the majority of its employees have already alleged Yepme of repeatedly delaying their salaries, since the October 2016.

YepMe upon this has said-

We have only held their salaries for one month during January 2017. Any other report is false and non-testified. It has been done as company’s internal decision for the betterment of the organization and its manpower.

As of now, it’s just one end of the news and epilog of this unfortunate situation is yet to be seen.

But where on one hand, the government is spending lavishly on the entrepreneurial ventures, YepMe’s condition seems to degrade by each passing day. It is already in loss and surplus negative is expected to rise even further, if its management doesn’t take any worthy step instead of stopping salaries and violating basic Human Rights and corporate norms.