Procedure for filing a complaint for unpaid salary

Understanding Your Right to Salary

Salary or wages are the consideration paid by an employer to an employee for services rendered. Under various labour laws including the Payment of Wages Act, 1936, and the Industrial Disputes Act, an employee has a legal right to receive timely and full payment for work done.

Non-payment of salary can take various forms including complete non-payment of wages, delayed payment, deduction without proper authorization, non-payment of overtime, non-payment of wages during the notice period, and non-payment of minimum wages.

The Payment of Wages Act regulates the payment of wages to certain classes of employed persons and requires employers to pay wages on time without unauthorized deductions. The Act applies to persons earning up to Rs. 24,000 per month.

Steps Before Filing a Formal Complaint

Before initiating legal proceedings, send a formal legal notice to the employer demanding payment of the outstanding salary. The notice should specify the amount due, the period for which salary is unpaid, and a deadline for payment.

Gather all evidence of employment and unpaid salary including the employment letter, appointment letter, salary slips, bank statements showing salary credits, attendance records, communication with the employer about salary, and any other relevant documents.

Request a meeting with the employer or HR department to resolve the matter amicably. Many disputes can be resolved through discussion without formal legal proceedings.

Procedure for Filing Complaint

Under the Payment of Wages Act, file a complaint with the authority appointed by the state government. The complaint must be filed within 12 months from the date the wages became due. The authority can order the employer to pay the withheld wages along with compensation.

Under the Industrial Disputes Act, raise a dispute before the conciliation officer or file a claim before the labour court. For workers covered under the Act, the labour court can order payment of unpaid wages and compensation.

File a civil suit for recovery of unpaid salary. This is suitable for employees not covered by the Payment of Wages Act or for claims exceeding the limit under the Act. The suit must be filed within 3 years of the due date of payment.

Other Legal Remedies and Prevention

File a complaint with the labour department of the state government. The labour inspector can inspect the establishment and take action against the employer. For minimum wage violations, file a complaint under the Minimum Wages Act.

Approach the police if the non-payment amounts to cheating or criminal breach of trust. Section 406 IPC (criminal breach of trust) and Section 420 IPC (cheating) may apply in cases where the employer had no intention of paying salary.

Prevent salary disputes by maintaining proper documents, having a written employment contract, keeping attendance records, and regularly checking salary slips and bank statements. Vidhi Legal Services assists employees in recovering unpaid salary.

Frequently Asked Questions