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 approached me after facing a frustrating situation with his former employer, ABC Pvt Ltd, located in City A. He had resigned from his position on DD/MM/YYYY due to the company’s consistent pattern of delaying salary payments. Along with several other employees, Mr.X decided to leave when the workplace became financially unreliable. However, four months after his resignation, the company had not paid his pending salary for the month prior to resignation, nor had they processed his final settlement including his last month’s salary, pending leave encashment, and other dues. Despite multiple follow-ups through emails and phone calls, XYZ Company continued to give excuses and avoided releasing his rightful payments. This deliberate withholding of wages was causing significant financial hardship for Mr.X and his family, forcing him to seek legal recourse.

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.

Send a legal notice immediately demanding payment within 15-30 days. This creates a formal record and often motivates employers to settle quickly. Gather all employment documents, salary slips, resignation letter, and email communications as evidence. File complaints with labor authorities in your state as they have enforcement powers against defaulting employers.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 316 deals with criminal breach of trust when employers wrongfully withhold employee payments. Section 318 covers dishonest misappropriation of property including wages. The Payment of Wages Act mandates employers to pay final settlements within specific timeframes. Under BNSS (Bharatiya Nagarik Suraksha Sanhita), Section 218 allows filing complaints for recovery of dues. Industrial Disputes Act provides additional remedies for wage-related grievances and unauthorized deductions by employers.

If You Are the Complainant

• File a formal complaint with the Assistant Labor Commissioner in your district within the prescribed time limit
• Approach the Provident Fund Office if EPF deductions were made but not deposited by the employer
• Submit a complaint to the Regional Labor Commissioner with all supporting documents and evidence
• File a case in the appropriate labor court under the Payment of Wages Act for recovery of dues
• Consider filing a criminal complaint under BNS if the amount is substantial and there’s deliberate fraud

If You Are the Victim

• Maintain detailed records of all communications with your former employer including emails, messages, and call logs
• Calculate the exact amount due including basic salary, allowances, unused leave encashment, and applicable interest
• Join with other affected employees to file collective complaints as it strengthens your case significantly
• Document any financial hardships caused by the non-payment as it may help in claiming compensation
• Keep copies of all employment-related documents safe as they will be crucial evidence in legal proceedings

How the Police Behave in Such Cases

Police typically treat salary disputes as civil matters initially and may be reluctant to register FIRs unless there’s clear evidence of criminal breach of trust. They often suggest approaching labor authorities first. However, if the withheld amount is substantial or there’s evidence of deliberate fraud, they may register cases under relevant BNS sections. Police cooperation improves when multiple employees file joint complaints with strong documentary evidence.

FAQs People Normally Have

Q: How long can an employer legally delay final settlement? A: Under the Payment of Wages Act, final settlement should be paid within 2 days of resignation or termination.

Q: Can I claim interest on delayed payments? A: Yes, you can claim interest at prescribed rates for delays beyond the statutory timeline.

Q: What if the company claims financial difficulties? A: Financial difficulties don’t excuse employers from paying statutory dues – wages have priority over other debts.

Q: Should I approach labor court or civil court? A: Labor courts have specialized jurisdiction and are generally faster for wage-related disputes.

What Evidence Is Required?

• Employment contract or appointment letter showing terms of employment and salary structure
• Salary slips for previous months to establish payment pattern and amount due
• Resignation letter with acknowledgment receipt or email confirmation from employer
• Bank statements showing last salary credit and subsequent non-payment
• Email correspondence and messages regarding salary delays and final settlement requests
• Leave records and calculations for leave encashment if applicable
• Witness statements from colleagues who faced similar issues with the same employer

How Long Will the Investigation Take?

Labor authority investigations typically take 2-3 months for straightforward wage cases. Court proceedings may extend 6-12 months depending on case complexity and employer cooperation. Criminal cases under BNS can take 1-2 years if the employer contests charges. However, interim relief and attachment of employer assets can often be obtained within 2-3 months to secure payment.

Advocate Sudhir Rao, Supreme Court of India