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I'm not Indian, but here in South America, there's a similar expectation with regards to companies. If a company goes broke, it is expected that employees will

I'm not Indian, but here in South America, there's a similar expectation with regards to companies. If a company goes broke, it is expected that employees will be restituted, politicians will get involved, government will sometimes prop up companies so that people aren't laid off, etc.. Apparently India doesn't have a good bankruptcy law, and so they're overhauling it: indianexpress.com/article/explained/simply-put-bankruptcy-law-and-the-need-to-have-one/ Fortunately here in South America there's a growing awareness about "startups" being different, but some employees might not be aware that said "companies" don't have an ongoing business and might go bust if they don't "make it". OTOH, it's still not very common for employees to be offered stock options.

GFischer 11y ago
Adding to that, the good old excuse "funding is coming", I've heard that before. From the article: " “We had an indication from the investor that we’ll close the funding by September end and we gave a 45 day period (for the F&Fs). But due to a bad market, it took time to close the deal and we were extremely cash crunched. So we requested people that as soon as we get new funding, we will shoot (off the payments). We told the old employees that money was coming on the 15th and we’d distribute it the same day.” I'm not sure about India, but in Uruguay, severance pay is HUGE (usually several salaries) and can impact very heavily a company.