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

A group of over 200 former employees of Sunrise Technologies Private Limited found themselves in a distressing situation when their Full and Final (F&F) settlements remained unpaid even after five years of leaving the company. Among these employees, approximately 50 individuals received F&F letters but never got their actual payments, while the remaining 150 employees were not even provided with proper F&F letters despite repeated promises from the management.

The employees, who worked across various departments including IT, operations, and customer service, left the company between 2019 and 2020. The company had assured them that their dues would be cleared within a few weeks, but years have passed without any resolution. The unpaid amounts range from Rs. 50,000 to Rs. 3,50,000 per employee, depending on their designation and tenure.

This situation raises important questions about collective legal remedies available under Indian law and the process for seeking justice when multiple individuals face similar grievances against the same entity.

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 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

Document all communications with the employer, including emails, letters, and WhatsApp messages regarding F&F settlements. Gather employment contracts, appointment letters, and salary slips as evidence of your employment and dues.

Consider approaching the Labour Commissioner’s office or relevant labour authorities for filing complaints under applicable labour laws.

Explore the possibility of filing complaints with the Employee Provident Fund Organisation (EPFO) if PF dues are also pending.

Applicable Sections of Law

The Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, provides provisions for joint trials and similar proceedings that can be applicable in cases involving multiple complainants with similar grievances.

The Payment of Wages Act, 1936, mandates timely payment of wages and provides for penalties in case of delays.

The Industrial Disputes Act, 1947, covers disputes between employers and employees, including issues related to non-payment of dues.

The Code on Wages, 2019, consolidates various wage-related laws and provides for timely payment of wages and other benefits.

Civil Procedure Code provisions allow for representative suits under Order 1 Rule 8, which permits one or more persons to sue on behalf of others having similar interests.

If you are the complainant

File individual complaints initially and then seek consolidation of cases if the court deems it appropriate. This approach often proves more effective than waiting to form a large group initially.

Maintain regular communication with other affected employees to coordinate legal strategies and share costs.

Keep detailed records of all expenses incurred due to the non-payment of dues, as these may be recoverable as damages.

Consider sending a final legal notice to the company before initiating court proceedings, as this may prompt settlement discussions.

If you are the victim

Immediately gather all employment-related documents including offer letters, salary slips, and any written communication about F&F settlements.

Calculate the exact amount owed to you, including basic salary, allowances, bonus, leave encashment, and any other benefits.

Document the financial hardship caused by non-payment of dues, as this may be relevant for claiming compensation.

Consider filing complaints with multiple authorities simultaneously – labour courts, civil courts, and labour commissioners – to maximize pressure on the defaulting employer.

How the police behave in such cases

Police generally view employment disputes as civil matters rather than criminal cases, unless there are elements of cheating or criminal breach of trust under the Bharatiya Nyaya Sanhita (BNS), 2023.

In cases involving large-scale fraud or deliberate non-payment with intent to cheat, police may register FIRs under relevant sections of BNS.

Police cooperation improves significantly when multiple complainants approach with similar grievances, as it indicates a pattern of fraudulent behavior.

Documentation plays a crucial role in convincing police to take action – clear evidence of promises made and broken can strengthen criminal aspects of the case.

FAQs people normally have

Can multiple employees file a single case together?
Yes, under Order 1 Rule 8 of the Civil Procedure Code, representative suits are possible where multiple persons have the same interest in the proceedings.

Is there a time limit for filing such cases?
Generally, there is a three-year limitation period for filing suits related to employment disputes, but specific circumstances may extend this period.

Will joining with other employees make the case stronger?
Yes, multiple complainants with similar grievances create a stronger case and demonstrate a pattern of default by the employer.

What happens if the company has closed down?
Even if the company is closed, cases can be filed against its directors and assets can be traced for recovery of dues.

What evidence is required?

Employment contracts and appointment letters proving the employer-employee relationship
Salary slips and bank statements showing regular salary credits
Resignation letters or termination letters indicating the end of employment
F&F settlement letters issued by the company, if any
Email communications, WhatsApp messages, or letters regarding F&F settlement promises
Witness statements from colleagues who can corroborate the non-payment
Company registration documents and GST details to establish legal entity
Details of company’s current financial status and asset information

How long will the investigation take?

Labour court proceedings typically take 6 months to 2 years depending on the complexity and the court’s workload. Civil court cases may take longer, often extending to 3-5 years.

Cases with multiple complainants may initially take longer due to procedural complexities but often resolve faster once consolidated.

Settlement negotiations, if initiated, can significantly reduce the time frame to a few months.

The availability of clear documentation and evidence can expedite the proceedings considerably.

Advocate Sudhir Rao, Supreme Court of India

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Group Legal Action for Unpaid Employee Dues – Understanding Your Rights