If you are stuck in such a situation, here is what to do.

Mr. Rohan Sharma, a dedicated software developer at “NextGen Tech Solutions Pvt. Ltd.” in the city of Gyanpur, found himself in a distressing situation. For the past two months, his salary had not been credited to his account. He had sent multiple emails to the HR department and his manager, Ms. Priya Desai, but only received vague promises that the payment would be processed soon due to some “internal financial restructuring.” With his monthly expenses and EMIs piling up, Mr. Sharma felt helpless and financially strained, wondering what legal recourse he had against his employer for the unpaid wages.

Advice in such cases

• Gather all documentation related to your employment, including your appointment letter, salary slips, bank statements, and any communication with the employer regarding the unpaid salary.
• Send a formal written communication or a legal notice to your employer demanding the payment of your outstanding salary. This creates an official record of your attempt to resolve the issue.
• Explore the possibility of initiating proceedings before the appropriate authority under the labour laws, such as the Labour Commissioner.
• 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 of 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.

Applicable Sections of Law

Cases of non-payment of salary are primarily governed by civil and labour laws in India. The key statutes include:

• The Code on Wages, 2019: This code consolidates laws relating to wages and bonuses. It mandates timely payment of wages and provides a mechanism for claims. Section 56 of the Code penalizes employers for non-compliance.
• The Industrial Disputes Act, 1947: This act provides a mechanism for the resolution of disputes between employers and employees, which includes disputes over unpaid wages.
• State-specific Shops and Establishment Acts: Each state has its own act that governs the conditions of work and employment, including provisions for timely salary payment.
• Bharatiya Nyaya Sanhita (BNS), 2023: In certain cases where there is a clear intention to deceive from the outset, a criminal complaint for cheating under Section 316 of the BNS can be filed. However, a simple non-payment is usually treated as a civil matter.

If you are the complainant

If you are the employee whose salary has not been paid, you are the complainant. Here are the steps you can take:

• Send a Legal Notice: The first step is to have a lawyer draft and send a formal legal notice to the employer, detailing the outstanding amount, the period for which it is due, and a deadline for payment.
• Approach the Labour Commissioner: You can file a complaint with the Labour Commissioner in your jurisdiction. They have the authority to mediate and pass an order for the payment of your dues.
• File a Civil Suit: You can file a summary suit or a regular civil suit for the recovery of money in a civil court. A summary suit is a faster procedure for recovering money due under a written contract.
• 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 of 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.

If you are the victim

As the victim of unpaid wages, your primary goal is to recover your rightful earnings and seek compensation for the hardship caused. Your focus should be on:

• Protecting Your Rights: Understand that timely payment of salary is your legal right, not a favour from the employer.
• Acting Promptly: Do not delay in taking action, as there are limitation periods for filing cases. Delay can weaken your claim.
• Maintaining Records: Keep a meticulous record of all communication, attendance, and work performed. This will serve as crucial evidence.
• 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 of 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.

How the police behave in such cases

Generally, the police are hesitant to intervene in matters of unpaid salary as they are considered civil disputes. They will likely advise you to approach the Labour Court or a civil court. Police involvement is rare unless there is a clear element of a criminal offence like cheating, criminal breach of trust, or intimidation. Filing an FIR is usually not the primary or most effective remedy for recovering unpaid wages.

FAQs people normally have

Common questions include: “Can I stop working if my salary is not paid?” “Can I claim interest on the delayed payment?” “What if the company claims it has no funds?” “Can I file a case against the company’s directors personally?” An experienced lawyer can provide specific answers based on the facts of your case and your employment contract.

What evidence is required?

To build a strong case, you will need the following evidence:

• Employment Contract/Appointment Letter: This is the primary document that establishes the employer-employee relationship and terms of salary.
• Salary Slips: Previous salary slips serve as proof of your monthly salary structure.
• Bank Statements: To show the non-crediting of salary for the specific months.
• Communication Records: Emails, text messages, or letters sent to HR or management regarding the unpaid salary.
• Attendance Records: To prove that you were working during the period for which salary is claimed.

How long will the investigation take?

The duration of the legal process varies depending on the path you choose. Proceedings before the Labour Commissioner are relatively faster and can be resolved within a few months to a year. A civil suit, on the other hand, can be a lengthy process, potentially taking several years to reach a final verdict due to the procedural complexities of the court system.

Advocate Sudhir Rao, Supreme Court of India