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

A common and distressing situation many employees face, especially in startups and smaller companies, involves the non-payment of salary, lack of formal documentation, and subsequent harassment. Consider the case of Mr. Rohan Kapoor, who recently faced such an ordeal. He joined a tech services firm, “NextGen Innovators,” in the city of Aryavarta as a Project Manager in May 2025. Despite his repeated requests, the company never provided him with a formal employment contract.

From the beginning, his salary payments were erratic and often delayed. The situation worsened when the company completely withheld his salary for the last two months of his employment. On top of this, arbitrary deductions were made from his pay whenever he was a few minutes late. Unable to continue in such a hostile environment, he resigned in September 2025. Following protocol, he returned the company-issued laptop via a registered courier service and has proof of delivery.

However, the employer is now refusing to issue his relieving letter and clear his final dues, which include the two months of unpaid salary. They are insisting that he must visit their office in person for a “final handover,” a tactic often used to pressure and harass former employees. This has left Mr. Kapoor under immense financial and mental stress. He has taken the correct step by filing a formal complaint with the office of the Labour Commissioner.

Advice in such cases

• Gather all documentary evidence you have. This includes appointment letters, emails, WhatsApp chats, bank statements, and any communication regarding your employment, salary, and resignation.
• Send a formal legal notice to the employer through an advocate. This notice should clearly state your grievances, demand the unpaid salary and other dues, and specify a deadline for compliance.
• If the employer fails to respond or comply with the legal notice, you can initiate a formal complaint with the Labour Commissioner in your jurisdiction.
• 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

In India, employee rights in such matters are protected under various statutes. The primary law governing wages is The Code on Wages, 2019.

• The Code on Wages, 2019: This code consolidates laws relating to wages and bonuses. It mandates the timely payment of wages. Crucially, it stipulates that the final settlement of all wages must be made within two working days of an employee’s resignation or termination. Withholding salary is a direct violation of this code.
• State-specific Shops and Establishment Acts: These acts regulate conditions of work, payment of wages, and other employment terms for establishments within a particular state. They often contain provisions that protect employees from arbitrary deductions and delayed payments.
• Industrial Disputes Act, 1947: Unfair labour practices, including withholding dues and not providing a relieving letter without valid reason, can be challenged under this act.

If you are the complainant

• The first step is to methodically organize all your evidence. Create a timeline of events, from your date of joining to the last communication with the employer.
• Keep all communication with the employer professional and, wherever possible, in writing (email is preferable). Avoid getting into verbal altercations.
• Follow the procedure advised by your legal counsel, which typically begins with a demand notice and may proceed to a formal complaint before the labour authorities.
• 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

• Understand that the law is on your side when it comes to rightfully earned wages. An employer cannot legally withhold your salary or final settlement arbitrarily.
• Do not feel pressured by the employer’s tactics. Their demand for a “physical handover” after you have already returned company property is likely a delay tactic.
• Focus on the legal process and let your advocate handle communications. This protects you from further harassment and ensures your case is presented professionally.
• 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, disputes related to employment contracts and unpaid salaries are considered civil matters. If you approach the police, they will likely direct you to the Labour Commissioner or a Labour Court, as they are the appropriate authorities for such disputes. The police do not have jurisdiction over contractual employment issues. However, police intervention may be warranted if the employer’s actions involve criminal elements such as criminal intimidation, extortion (demanding something under threat), or cheating, which are punishable under the Bharatiya Nyaya Sanhita (BNS).

FAQs people normally have

Can my employer withhold my salary for not serving the notice period?
An employer can typically deduct pay in lieu of the unserved notice period from the final settlement, but they cannot withhold the entire salary earned during the period you worked. The terms of your employment contract (even if verbal) are key here.

Is an employment agreement valid without a written contract?
Yes, an oral agreement for employment is legally valid. However, proving its specific terms (like salary, notice period, etc.) can be challenging. Evidence like emails, WhatsApp messages, and bank statements showing salary payments becomes critical in such cases.

Can my employer refuse to give me a relieving letter?
No, an employer cannot unreasonably withhold a relieving or experience letter. It is an unfair labour practice. If all your responsibilities are complete and company property is returned, you are entitled to this document.

What evidence is required?

Strong evidence is crucial for a successful claim. You should gather:

• Any offer letter, appointment email, or message that confirms your employment and salary.
• Bank statements showing previous salary credits (and the lack thereof for the unpaid months).
• Copies of all email and text/WhatsApp communication with your employer, especially regarding salary delays, work assignments, and your resignation.
• Proof of returning company property, such as courier receipts or email acknowledgments.
• Any communication from the employer making demands or threats.

How long will the investigation take?

The timeline for resolving a complaint with the Labour Commissioner can vary. After you file a complaint, the authority will issue a notice to the employer and schedule a conciliation meeting to try and mediate a settlement. If conciliation fails, the matter may be referred to the Labour Court. The entire process can take anywhere from a few months to over a year, depending on the complexity of the case and the cooperation of the employer.

Advocate Sudhir Rao, Supreme Court of India