One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X worked as a senior marketing executive at XYZ Pvt Ltd in City A for three years. In DD/MM/YYYY, the company terminated his employment citing restructuring. However, XYZ Pvt Ltd withheld his final salary, pending bonuses, and provident fund contributions totaling Rs. 3.5 lakhs. Despite multiple follow-ups over six months, the company management refused to release the dues, claiming Mr.X had violated certain company policies during his tenure. When Mr.X demanded written justification for withholding his legitimate earnings, the company remained unresponsive. Facing financial hardship, Mr.X approached our legal firm for assistance in recovering his rightful dues and seeking appropriate legal remedies against the employer’s unfair practices.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Document all communications with your employer including emails, letters, and messages regarding the withheld dues. Send formal legal notices demanding payment within specified timeframes. File complaints with labor authorities and employment tribunals simultaneously for faster resolution.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 316 deals with criminal breach of trust by employers withholding employee funds. The Payment of Wages Act, 1936 provides statutory protection for timely wage payments. Industrial Disputes Act, 1947 covers wrongful termination and settlement of disputes. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 173 governs the investigation process for employment-related financial frauds and ensures proper procedural compliance during legal proceedings.

If You Are the Complainant

• File a formal complaint with the Regional Labor Commissioner within the prescribed time limit
• Submit detailed documentation of employment contract, salary slips, and pending dues calculation
• Send legal notice to the company demanding immediate payment of all outstanding amounts
• Approach the Employment Tribunal or Industrial Tribunal for adjudication of the dispute
• Consider filing criminal charges under relevant sections of BNS for breach of trust

If You Are the Victim

• Maintain detailed records of all unpaid wages, bonuses, and statutory contributions owed by employer
• Gather witness statements from colleagues who can testify about your work performance and conduct
• File complaints with multiple authorities including Labor Department, EPF office, and ESI corporation
• Seek interim relief for immediate financial assistance while the case is pending
• Consider approaching consumer courts if the employer has violated service conditions unfairly

How the Police Behave in Such Cases

Police typically treat employment disputes as civil matters initially and may be reluctant to register criminal complaints. However, when clear evidence of criminal breach of trust exists, they must register FIR under relevant BNS sections. Officers usually advise attempting settlement through labor authorities first. Once criminal complaint is filed, investigation focuses on financial records and employment documentation to establish the employer’s liability.

FAQs People Normally Have

Can I file both civil and criminal cases simultaneously? Yes, you can pursue both remedies as they serve different purposes – civil for recovery and criminal for punishment.

What if the company claims I violated policies? The employer must provide written proof and follow due process before withholding wages, regardless of alleged violations.

How long do I have to file a complaint? Generally, you have three years from the date of termination to file claims, but earlier action is advisable.

What Evidence Is Required?

• Employment contract and appointment letter showing terms of employment
• Salary slips and bank statements proving regular payment history
• Termination letter or notice from the company
• Email correspondence regarding pending dues and company responses
• PF and ESI contribution records from respective authorities
• Witness statements from colleagues or supervisors
• Performance appraisals contradicting company’s claims of policy violations

How Long Will the Investigation Take?

Labor authority investigations typically conclude within 3-6 months depending on case complexity. Criminal investigations may take 6-12 months as they involve detailed financial scrutiny. Civil proceedings in employment tribunals usually resolve within 8-18 months. Timelines can be shortened with proper documentation and legal representation ensuring procedural compliance throughout the process.

Advocate Sudhir Rao, Supreme Court of India