Ms. Anjali Sharma recently found herself in a distressing situation. She had joined a boutique marketing firm, “Creative Spark Agency,” in the city of Avantika as a project manager. From the start, there were issues with salary payments. Her salary for May was delayed by three weeks, and her June salary was never paid. Frustrated with the financial instability and unprofessionalism of the owner, Mr. Rajan Verma, she resigned in early July after securing a new job.

Anjali decided not to pursue the pending salary, wanting a clean break. However, a few weeks later, a junior colleague she had hired, Sameer, called her in a panic. Mr. Verma had shown up at Sameer’s home, accusing him of stealing client data and threatening him with dire consequences. Hearing this, Anjali grew fearful that Mr. Verma might level similar false accusations of theft or fraud against her if she ever tried to formally claim her dues, or even just to harass her. She wanted to know how to protect herself from potential malicious legal action while forgoing her unpaid salary.

Advice in such cases

Navigating a dispute with a former employer can be intimidating, especially when it involves threats and withholding of legitimate dues. The primary goal is to secure your position legally and ensure your peace of mind.

• Document Everything: Keep a clear record of all communication, including emails, text messages, and appointment letters. Note down dates and times of any verbal conversations or threats.
• Communicate Formally: For any necessary communication, use email or registered post. This creates a verifiable paper trail.
• Secure Your Evidence: Preserve bank statements showing irregular salary payments, bounced cheques, and any correspondence related to your resignation and the handover of company property.
• Do Not Engage in Informal Arguments: Avoid getting into heated arguments over the phone or in person. Keep all interactions professional and documented.

Applicable Sections of Law

Such cases involve a mix of civil and criminal law issues under the new Indian legal framework:

• Withholding of Salary: This is primarily a civil matter. An employee can seek remedy under the Payment of Wages Act, 1936, or approach the Labour Commissioner. A legal notice for the recovery of dues is the first formal step.
• Criminal Intimidation: Threatening an individual with injury to their person, reputation, or property is a criminal offense. This is covered under Section 351 of the Bharatiya Nyaya Sanhita, 2023 (BNS).
• False Accusations/Defamation: If the employer makes false and malicious accusations that harm your reputation, it can amount to defamation under Section 356 of the BNS.
• Filing a False Complaint: Initiating false criminal proceedings against someone is also a punishable offense.

If you are the complainant

If you are the employee facing these issues, you are the complainant. Here are the steps you should consider:

• Send a Legal Notice: Your lawyer can draft and send a formal legal notice to the employer. This notice can demand the unpaid salary and also state that you will hold the employer liable for any threats or defamatory statements.
• File a Police Complaint: If you or others have been threatened, you can file a complaint at the local police station. This can be for criminal intimidation under Section 351 of the BNS. This creates an official record of the employer’s conduct.
• Create a Precautionary Record: You can visit the local police station and submit a written application (sometimes referred to as a General Diary or GD entry) detailing the situation. State that you have resigned, returned all company property, have no dues towards the company, and are recording this due to fears of false implication by your ex-employer. This acts as a preemptive measure.
• 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

If you are the employer and an employee is making false claims against you, you are the victim of a malicious complaint. Here is what you can do:

• Gather Your Records: Collect all documents proving you have paid the employee’s dues, their resignation letter, and proof of full and final settlement, if any. Maintain records of their performance and conduct.
• Respond to Legal Notices Promptly: If you receive a legal notice, do not ignore it. Engage a lawyer to draft a detailed and factual reply, refuting the false claims with evidence.
• Anticipatory Bail: If you fear a false criminal complaint might be filed against you leading to arrest, you can apply for anticipatory bail under Section 482 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).
• File a Counter-Complaint: If the employee is blackmailing or threatening you, you can file a police complaint against them. For false accusations harming your business reputation, you can initiate civil or criminal defamation proceedings.
• 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

The police response often depends on how the complaint is framed. If the complaint is purely about non-payment of salary, the police will likely classify it as a civil dispute and advise you to approach the labour court or a civil court. However, if your complaint clearly mentions elements of criminal intimidation, extortion, or threats, the police are obligated to register a First Information Report (FIR) or at least conduct a preliminary inquiry as per the provisions of the BNSS.

FAQs people normally have

Here are some common questions that arise in such situations:

• Can I file a police report just to be safe, even if I don’t want my salary?
  Yes, you can. You can submit a written complaint to the police detailing the facts and your apprehension of being falsely implicated. This creates a defensive record that can be crucial if your ex-employer files a false case against you later.
• Will this precautionary police report protect me completely?
  While it is not a foolproof shield, it serves as valuable evidence of your version of events, recorded before any potential false complaint is filed against you. It demonstrates your bona fide conduct and can weaken the credibility of any subsequent malicious allegations.
• What should I write in such a complaint?
  Your complaint should be concise and factual. Mention your employment details, resignation date, a statement that you have returned all company property (like laptop, SIM card, etc.), and that you have no pending dues towards the company. Clearly state the reasons for your apprehension, such as threats made to you or your colleagues, and explicitly state that you are filing this as a precautionary measure.

What evidence is required?

Strong evidence is key to substantiating your claims. This includes:

• Your appointment letter and resignation email.
• Emails or messages regarding delayed or unpaid salary.
• Bank statements showing non-payment.
• Any communication regarding the handover of company assets.
• Witnesses, such as the colleague who was threatened.
• Call recordings or messages containing threats (admissibility may vary, but they are useful for police complaints).

How long will the investigation take?

The duration of an investigation can vary significantly. For a police complaint involving threats, a preliminary inquiry might take a few weeks. If an FIR is registered, the investigation timeline is mandated under the BNSS, which requires the police to proceed efficiently, but complex cases can still take several months. Civil cases for salary recovery can be a longer process, often taking over a year to resolve.

Advocate Sudhir Rao, Supreme Court of India