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

Mr. Rohan Verma, a junior developer, joined a tech startup named “Quantum Innovations Ltd.” in the city of Nagpur on February 5th, 2025, with a monthly salary of ₹30,000. For the first few months, everything seemed normal. However, the company failed to pay his salary for the months of May and June. Despite numerous emails and verbal reminders to the HR department, his dues were not cleared.

Instead of receiving his salary, Rohan was shocked to receive a formal notice from the company. The notice accused him of “unauthorized absence” and “failure to complete pending tasks.” It threatened termination and further legal action to recover alleged damages if he did not return to the office immediately. Rohan had been in constant communication with HR regarding the pending salary and had expressed his willingness to complete his work as soon as at least one month’s pending salary was paid. He was working on a challenging legacy project with unrealistic deadlines, which the company was now using as leverage against him. This situation is unfortunately common, where employers use pressure tactics to avoid paying their employees.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act strategically and not out of panic.

• Document Everything: Keep a record of all communication with your employer. This includes emails, text messages, official letters, and even notes from verbal conversations with dates and times. This documentation is your primary evidence.
• Do Not Resign: Do not resign from your job under pressure. If you resign, it may be portrayed as you voluntarily leaving, which can weaken your case for claiming unpaid dues and challenging an unfair termination.
• Send a Formal Response: Respond to any official notice professionally and in writing. Clearly state the facts: reiterate your requests for unpaid salary, confirm your willingness to work upon payment, and refute any false allegations like “unauthorized absence.”
• 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

Several laws protect an employee’s right to receive a timely salary. The primary legal frameworks applicable here are:

• The Payment of Wages Act, 1936: This Act regulates the payment of wages to certain classes of employed persons. It mandates timely payment of wages and provides a mechanism for employees to recover unpaid or delayed salaries.
• The Industrial Disputes Act, 1947: This Act provides a framework for the resolution of disputes between employers and employees. Withholding wages and threatening termination can be considered an “unfair labour practice” under this Act.
• The Indian Contract Act, 1872: An employment letter is a contract. Non-payment of salary is a clear breach of this contract, giving the employee the right to sue for recovery of the amount due.
• Companies Act, 2013: In cases of company insolvency or winding up, employees’ dues are given priority.

If you are the complainant

As the employee who has been wronged, you are the complainant. Here are the steps you should take:

• Gather Your Documents: Collect your appointment letter, salary slips, bank statements (to show non-receipt of salary), and all communication records with the employer.
• Send a Legal Notice: The first formal step is often to send a legal notice to the employer through a lawyer. This notice will detail your claim for the unpaid salary and warn of legal action if the payment is not made within a specified period. Many disputes are resolved at this stage.
• Approach the Labour Commissioner: You can file a complaint with the office of the Labour Commissioner in your jurisdiction. They have the authority to mediate the dispute and order the employer to pay the outstanding dues. Your tenure or salary level (within certain limits) does not disqualify you from this remedy.
• File a Civil Suit: You can also file a summary suit or a regular civil suit in a civil court for the recovery of your unpaid salary along with interest.
• 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

Being a victim of such tactics can be stressful. It is important to stay calm and know your rights.

• Understand the Threats: The employer’s threats of legal action to “recover damages” are often just scare tactics. For them to succeed, they would have to prove in court that you caused them a specific, quantifiable financial loss, which is very difficult, especially when they are the ones who have breached the contract by not paying you.
• Your Tenure Doesn’t Matter: Your right to be paid for the work you have done is absolute from day one. Whether you have worked for two months or two years, the employer is legally obligated to pay you for that period.
• Focus on the Breach of Contract: The core issue is the employer’s failure to pay your salary, which is a fundamental breach of your employment contract. This puts them on the back foot legally.
• 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

Non-payment of salary is primarily a civil dispute, not a criminal one. Therefore, the police have a very limited role. If you approach the police, they will likely direct you to the Labour Court or a Civil Court. Police intervention would only be warranted if there are elements of criminal activity, such as criminal intimidation (Section 315 of the Bharatiya Nyaya Sanhita, 2023), cheating, or fraud. However, proving this in an employer-employee dispute is often difficult, and the civil route is the most appropriate and effective remedy.

FAQs people normally have

What evidence is required?

Strong evidence is key to winning your case. You should meticulously collect:

• Your appointment or offer letter.
• Previous salary slips.
• Bank statements showing the non-payment for the disputed months.
• All email, text, or WhatsApp correspondence with HR or your manager regarding your salary.
• The formal notice you received from the company and your written reply to it.
• Any proof of the work you have completed during the period for which you were not paid.

How long will the investigation take?

The timeline for resolution can vary significantly depending on the path you choose.

• Legal Notice: A resolution can be achieved within 15-30 days if the employer agrees to settle after receiving the notice.
• Labour Commissioner: Proceedings here are generally faster than in courts and can take a few months.
• Civil Court: A civil suit is a more prolonged process and can take anywhere from a year to several years to reach a final verdict, depending on the complexity of the case and the court’s workload.

Advocate Sudhir Rao, Supreme Court of India