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

Rohan Khanna, a 20-year-old digital content creator and online presence manager, found himself in a distressing situation. He diligently handled all aspects of his role, from editing and uploading content for various platforms like ‘Visionary Reels’ and ‘Global Echoes’, to managing raw data and brand content for ‘Synergy Innovations’.

For the month of Chaitra, Rohan was promised a salary of ₹12,850. There was also an outstanding amount of ₹600 from the previous month for delivering ‘premium content’ series like ‘Cosmic Glow’, ‘Oceanic Bliss’, and ‘Mountain Echo’. Additionally, he worked for 5 days in Vaishakh, which amounted to an extra ₹2,650. In total, ₹16,100 was due to him.

Mr. Alok Sharma, the proprietor of ‘Synergy Innovations’, had assured Rohan that once all project data was submitted, his payment would be cleared within 4-5 days. Rohan submitted everything, including all raw files. However, it has now been over a week, and he has received no salary, no response, and no communication. Mr. Sharma has completely ignored his calls and messages.

Rohan is facing severe financial strain. He has college fees due at ‘Vidyalankar University’, and daily penalties are accumulating. Despite consistently working hard, delivering all assignments on time, and fulfilling his responsibilities, he is now left chasing what he rightfully earned. This ordeal has left him mentally exhausted.

Many individuals face similar predicaments. It raises crucial questions: Should one dispatch a legal notice? Or file a complaint with the appropriate labour authorities? Understanding the available legal recourse is vital in such trying times.

Advice in such cases 🤔

When an employer withholds earned wages, it’s a serious matter. While primarily a civil and labour dispute, specific circumstances might involve criminal elements. Here’s a breakdown of the steps you can take:

• Send a Legal Notice: This is often the first and most effective step. A formal legal notice, drafted by an advocate, clearly states your claim, the amount due, and the legal consequences of non-payment. It often prompts employers to settle the dues to avoid further legal action.
• Approach the Labour Department: The Code on Wages, 2019, is the primary legislation governing wage payments in India. You can file a complaint with the appropriate Labour Commissioner or the Industrial Relations Centre in your district. They have the authority to mediate, conduct inquiries, and order the payment of wages, along with penalties. This is usually the most direct and effective route for wage recovery.
• File a Civil Suit for Recovery of Money: If the above steps do not yield results, you can file a civil suit in the competent Civil Court for the recovery of your dues. This process can be time-consuming but is a definitive legal remedy.
• Consider Criminal Action (with caution): While non-payment of wages is generally a civil wrong, if there is clear evidence that the employer had a dishonest intention from the very beginning (i.e., they induced you to work with no intention of paying you), it *could* potentially amount to ‘cheating’ under Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023. However, proving this ‘initial dishonest intention’ is very difficult in typical unpaid wage cases, as it’s often a contractual dispute rather than a pre-planned fraud. Generally, the police do not intervene in mere wage disputes unless a clear criminal offence is established.

Applicable Sections of Law ⚖️

• The Code on Wages, 2019: This is the primary law dealing with the payment of wages. It consolidates and amends laws relating to wages, bonus, and related matters. It mandates timely payment of wages and provides for penalties for non-compliance.
• The Industrial Disputes Act, 1947: Relevant for certain categories of employees classified as “workmen,” it provides mechanisms for conciliation and adjudication of industrial disputes, including those related to unpaid wages.
• The Specific Relief Act, 1963: Can be invoked for specific performance of contracts, though a money recovery suit is more direct for unpaid wages.
• The Bharatiya Nyaya Sanhita (BNS), 2023:
  • Section 318 (Cheating): As mentioned, if there’s clear evidence of dishonest intention to induce work without payment from the outset, this section *might* apply. However, it’s a high bar to meet for mere non-payment.
  • Section 117 (Criminal Intimidation): If the employer resorts to threats or intimidation when you demand your wages, this section could be invoked.
• The Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023: This is the procedural law. If a criminal complaint (e.g., under BNS) is filed, BNSS outlines the procedure for investigation, arrest, bail, trial, etc. For instance, Section 173 of BNSS deals with the procedure for filing a First Information Report (FIR).

If you are the complainant 📜

As the aggrieved employee, you are the complainant. Your role involves:

• Gathering all relevant documents and evidence.
• Clearly articulating your complaint to the Labour Department, or through a legal notice.
• Cooperating with the authorities during any conciliation or inquiry process.
• If pursuing a civil suit, providing accurate details and evidence to the court.
• If a criminal angle is pursued (e.g., cheating), providing a detailed account to the police for FIR registration and assisting in the investigation.

If you are the victim 🛡️

In cases of unpaid wages, you are indeed the victim of a breach of contract and, potentially, exploitation. As a victim, you have the right to seek legal remedies to recover your rightful earnings and, in some cases, compensation for the delay and distress caused. Your rights include:

• The right to receive wages on time as per contract and law.
• The right to approach appropriate legal forums (Labour Department, Civil Court, or in rare cases, Police).
• The right to claim interest or penalties on delayed wages as provided under the Code on Wages, 2019.
• The right to a fair hearing and justice.

How the police behave in such cases 🚨

It is crucial to understand that the police typically consider unpaid wages a civil dispute and generally do not register an FIR for it unless there is clear evidence of a criminal offense like cheating (BNS Section 318) or criminal intimidation (BNS Section 117). They often advise complainants to approach the Labour Department or file a civil suit for recovery of money. If a clear criminal element is present and proven, then the police will proceed with investigation as per the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

FAQs people normally have ❓

• Can I file an FIR directly for unpaid wages? Generally, no. Police usually treat it as a civil dispute. An FIR under BNS (e.g., for cheating) would require strong evidence of the employer’s dishonest intention from the very beginning, which is hard to prove in wage disputes.
• How long does the process take? This varies. A legal notice might resolve it quickly (within weeks). Labour Department conciliation can take a few weeks to months. A civil suit can take several months to a few years. A criminal case, if registered, also involves investigation and trial which can be lengthy.
• What documents do I need to present? You will need your appointment letter, offer letter, contract, proof of work done (e.g., completed projects, emails, chat logs, timesheets), communication records regarding payment, and bank statements showing non-payment.
• Can I claim compensation for the delay and mental distress? Yes, under the Code on Wages, 2019, you can claim not only the unpaid wages but also compensation for the delay, which can be up to 10 times the amount of wages due in certain circumstances. For mental distress, a civil suit might allow for such claims, but it’s more complex.

What evidence is required? 📝

To strengthen your case, gather the following evidence:

• Offer Letter/Appointment Letter: Proof of your employment terms, salary, and designation.
• Employment Contract: If a formal contract was signed, it’s crucial.
• Proof of Work Done: Emails, project files, screenshots of uploaded content, performance reports, client testimonials, daily work logs, or any other tangible evidence that demonstrates you performed your duties.
• Communication Records: All emails, WhatsApp chats, SMS messages, or call records exchanged with the employer regarding your work, salary, and demands for payment.
• Bank Statements: To clearly show the non-receipt of salary for the period claimed.
• Attendance Records: If maintained, these can prove your presence and working days.
• Witnesses: If any colleagues or clients can testify to your work and the employer’s non-payment.

How long will the investigation take? ⏳

The “investigation” period depends on the legal route chosen:

• Labour Department: The conciliation process usually begins within a few weeks of filing a complaint. The conciliation officer will try to mediate a settlement. If conciliation fails, the matter can be referred for adjudication, which can take several months.
• Civil Suit: Once a civil suit for recovery of money is filed, the court process involves summons, written statements, evidence, and arguments. This can be a lengthy process, often extending from several months to a few years, depending on the complexity of the case and court backlog.
• Criminal Case (if applicable): If an FIR is registered under BNS, the police investigation (as per BNSS) can take anywhere from a few weeks to several months, after which they file a charge sheet or a final report. The subsequent trial can then take a considerable amount of time.

It is always advisable to consult with a legal expert to understand the best course of action based on the specific facts of your case.

Advocate Sudhir Rao, Supreme Court of India