How long companies will keep taking advantage of badly framed labour laws?

So today I came across another post around employer not paying dues to the ex-employees. It had happened so many times in the past and most recent example being of Good Glamm Group, where they keep paying their current employees but ex-employees are left behind without clearing any dues.

I strongly feel, the VCs must figure a way out before funding any companies. They must put a clause that the 3 month salary of all the employees must be put in reserves and can’t be used without their go ahead.

Our labour laws and lack of interest from VCs is actually driving thing.

Pretty sad state.