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

Mr. Rohan Sharma, a dedicated employee at Apex Digital Solutions in Navapura, decided to resign to pursue a better opportunity. He submitted his resignation in accordance with the company’s policy. However, his professional transition quickly turned into a distressing ordeal. For several months following his resignation, the company began delaying his salary payments. Furthermore, he discovered that his Employee Provident Fund (EPF) contributions were not being deposited on time, jeopardizing his long-term savings.

To make matters worse, after he had already resigned, the company arbitrarily changed its notice period policy and significantly increased his workload. This felt like a retaliatory measure and an unfair labour practice. Despite his repeated attempts to communicate via email and phone calls, the management remained unresponsive. They failed to provide a formal acceptance of his resignation, a relieving date, or the crucial documents he needed for his next job, such as the relieving letter and experience certificate. His pending salary and full and final settlement were also withheld, putting him in a precarious financial and professional position, as it could adversely affect his new job’s background verification process.

Advice in such cases

Facing such a situation can be incredibly stressful. Here are the immediate steps you should consider taking:

• Document Everything: Maintain a meticulous record of all communications. This includes your resignation letter, emails exchanged with HR and management, salary slips (or lack thereof), and bank statements showing non-payment of salary.
• Send a Formal Legal Notice: The first formal step is often to have a lawyer send a legal notice to the employer. This notice will detail all the grievances, including non-payment of salary, pending dues, non-deposit of EPF, and the failure to provide relieving documents. It sets a specific deadline for the company to comply, failing which legal proceedings will be initiated.
• Consult with Lawyer: 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.
• Approach the Labour Commissioner: You can file a formal complaint with the office of the Labour Commissioner in your jurisdiction. They are empowered to mediate and pass orders for the recovery of unpaid wages.
• File a Grievance with EPFO: For delayed or non-payment of EPF contributions, you can file a grievance directly with the Employees’ Provident Fund Organisation (EPFO) through their online portal.

Applicable Sections of Law

The actions of the employer in such cases are in direct violation of several key Indian labour laws. The legal framework has been consolidated into new codes:

• The Code on Wages, 2019: This code has subsumed the Payment of Wages Act, 1936. It mandates the timely payment of wages. Crucially, Section 17(2) of the Code stipulates that the wages of an employee must be paid within two working days of their removal, dismissal, retrenchment, or resignation. Withholding salary beyond this period is a clear violation.
• The Code on Social Security, 2020: This code incorporates the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. It makes it mandatory for the employer to deposit their and the employee’s share of PF contributions within the stipulated time. Failure to do so attracts penalties and legal action.
• The Industrial Relations Code, 2020: This code addresses unfair labour practices. Imposing a change in service conditions, like altering the notice period policy retrospectively after a resignation has been tendered, can be classified as an unfair labour practice on the part of the employer.

If you are the complainant

As the employee who has been wronged, you are the complainant. Here is a systematic approach to take:

• Gather Your Arsenal of Evidence: Collect all relevant documents: your appointment letter, the company’s HR policy handbook, your resignation email with proof of delivery, payslips, bank statements, and any written communication regarding your workload or the policy changes.
• Initiate Formal Communication: Send a registered post or an email clearly stating your intention to seek legal recourse if your dues and documents are not cleared by a specific date. This creates a strong paper trail.
• File Official Complaints: Simultaneously file a complaint with the Labour Commissioner for unpaid wages and with the EPFO for provident fund discrepancies. These government bodies can exert pressure on the employer.
• Consider a Civil Suit: For recovery of dues, damages for mental harassment, and to compel the issuance of documents, you can file a summary suit or a regular civil suit in a court of appropriate jurisdiction.
• Consult with Lawyer: 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 such illegal practices, it is essential to understand your rights and act decisively. You are not powerless in this situation. The law provides specific remedies to protect your interests against an unscrupulous employer.

• Do Not Abscond: While it is tempting to just stop going to work, it is better to formally communicate your position. Send a final email stating that due to the company’s breach of contract (non-payment of salary), you are unable to continue rendering services and consider yourself relieved from your duties. This protects you from allegations of “absconding.”
• Claim Interest and Damages: You are legally entitled to claim interest on the delayed salary payments. You can also claim compensation for the mental agony and financial hardship caused by the employer’s actions.
• Focus on Resolution: Your primary goal is to recover your dues and get your documents to move on with your career. A well-drafted legal notice often resolves the issue without the need for prolonged litigation, as most companies want to avoid legal trouble.
• Consult with Lawyer: 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

Typically, the police do not intervene in matters of employment disputes, as these are considered civil in nature. If you approach a police station, they will likely direct you to the Labour Commissioner or a civil court. Police involvement would only be warranted if there is an element of a criminal offense, such as criminal breach of trust (Section 316 of the Bharatiya Nyaya Sanhita, 2023) or cheating (Section 318 of BNS), which can be difficult to prove in such contexts. The primary and most effective route is through the labour law authorities and civil courts.

FAQs people normally have

Here are answers to some common questions in this scenario:

• Can I legally stop working immediately due to non-payment of salary?

  Yes, non-payment of salary is a fundamental breach of the employment contract. You can treat this as a case of “constructive dismissal,” where the employer’s actions have made it impossible for you to continue working. However, you must communicate this formally in writing before you stop attending work.

• Can I escalate this to the Labour Commissioner and claim interest?

  Absolutely. The Labour Commissioner is the appropriate authority for disputes related to wages. You can file a claim for your pending salary, and under the law, you can also claim interest for the period of delay.

• Should I also report EPF delays to the EPFO directly?

  Yes. The EPFO takes non-compliance by employers very seriously. You should immediately file a grievance on the EPFO portal. The organization will launch an inquiry and can take punitive action against the employer, including levying damages and initiating recovery proceedings.

• Can the company take action against me if I leave before the notice period ends?

  If the company has breached the contract first by not paying your salary, their legal standing to sue you for not serving the full notice period is significantly weakened. An employer cannot enforce their rights under a contract that they themselves have violated. Your formal communication citing their breach as the reason for your departure will serve as your defense.

What evidence is required?

Strong evidence is the backbone of your case. You will need:

• Your appointment letter detailing your salary and terms of employment.
• All salary slips received from the company.
• Bank account statements showing the non-credit of salary for the disputed months.
• A copy of your resignation letter and proof of its submission (email delivery receipt, courier receipt).
• All written communication (emails, letters) with HR or management regarding your resignation, salary, and documents.
• The company’s HR policy document, if available, especially concerning notice period and final settlement.

How long will the investigation take?

The timeline can vary. A matter before the Labour Commissioner can be resolved within a few months if the employer cooperates. However, if the matter goes to a Labour Court or Civil Court, it can take longer, potentially a year or more, depending on the complexity of the case and the court’s workload. A legal notice often expedites the process, as many employers choose to settle the matter to avoid formal proceedings.

Advocate Sudhir Rao, Supreme Court of India