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• It is quite common in India for employers to deny salary to employees, especially at the time of firing them. They think that employees haven’t any options or the resources to pursue a case against an employer. There are several things an employee can do this can land an employer in real trouble. However, the knowledge regarding the identical is not available in the public domain and the lawyer’s advice come costly.

• There are several legal processes that will be followed by an employee to recover salary or wages. The primary step we recommend is sending a good notice from a credible lawyer with a track record of doing such matters. However, before we tell you more, allow us to get you introduced to some basic concepts in Indian labour laws that deal with the issues of non-payment of wages or salary.

• India has a whole law on payment of salary called the Payment of Wages Act, though it doesn’t apply to all levels of employees. it always applies to low-wage blue caller workers.

• Effective 9/11, 2012, the wage ceiling under the Payment of Wages Act, 1936 was increased to a mean wage ceiling of INR 18,000 per month under a notification by the Indian Government. If you’re not covered under this act, other remedies are still available.

Monthly Salary Distribution Requirements:

• A person is functioning in an establishment with a wage not more than one thousand, the wage to the actual person shall be paid before the expiry of the seventh day.
• A person with the wage of quite one thousand shall be paid before the expiry of the tenth day.
• If the worker is terminated by the employer the wages earned by him shall be paid before the expiry of the second working day from the day his employment is terminated.

What steps can be taken by employee:

If your employer isn’t paying your salary, you’ll get these remedies.

A) Approach Labour Commissioner:

If an employer doesn’t ante up your salary, you’ll approach the labour commissioner. they’re going to help you to reconcile this matter and if no solution is reached labour commissioner will hand over this matter to the court whereby a case against your employer may be pursued.

B) Industrial Dispute Act:

• An employee can file a suit under Section 33(c) of commercial Dispute Act, 1947 recovery of cash due from an employer.

• When the salary is due from the employer, the worker himself or any other person authorized by him in writing on his behalf can claim recover money

• In case of the worker death, the authorized person or heirs make an application to the labour court for recovery of cash due.

• The court will further issue a certificate on being satisfied that the salary is due and therefore the collector shall proceed to recover the same.

• If any question arises on the amount of money due or as to the amount at which such benefit should be computed, it might be computed according to rules under this Act.

What about executives, managers, and people who earn above INR 18,000 a month?

If you’re manager or executive level employee, you’ll file a case against the company in the civil court under order 37 of Court of civil procedure. This is often faster than the usual slow procedure in civil courts, called a summary suit. it’s quite effective, but shouldn’t be pursued as a first resort. There are easier things at your disposal also. Out of 100 cases, maybe 5-7 requires such effort. However, many lawyers are quick to leap to this. Before choosing this, ask your lawyer to exhaust other means.

What if company isn’t paying with a fraudulent or dishonest intent?

If an employee is suffering from the company’s fraudulent activities, then he may seek some strong actions.

Employer Fraud Punishment: • Section 447 of Companies Act, 2013 lays down punishment for fraud. • Person shall be responsible for imprisonment not less than 6 months which may extend to 10 years. • Fine not but amount involved in fraud which may extend up to three times of the fraud amount.

Step To recover unpaid salary

Step 1: We strongly recommend sending a legal notice enumerating all the actions that you simply may take from a credible lawyer. Before visiting a lawyer, make sure that they have some track record in doing such work.

Step 2: If this doesn’t work, approaching police for a cheating case, where there’s enough evidence for such fraud, is critical. At this stage, it’s important to prepare a detailed case file to give to police, and your lawyer should assist you during this. A majority of such complaints aren’t accepted due to weak drafting and lack of prima facie evidence. This is often where a good lawyer can make a lot of difference.