What to do if your employer does not pay your salary or delays it by more time?
“By HC order: The Employer has to pay the interest on the salary if the salary is delayed”
As per the rules on salary delay, the employer needs to pay a reasonable interest to Employee, if salary not paid or delayed, the Bombay High Court has held.
It is very common in India for employers to deny salary of the employees, especially during the time of firing them.
They feel that employees have no options or maybe the resources to follow an instance against an employer.
In reality, there are several things an employee can do that can land a company in real trouble, Yet the knowledge about the same is not available in the public domain and solicitor’s advice come costly.
Although there are several legal processes that can be followed by a worker to recover their salary/wages.
Few steps can be considered by the employee if the employer is not paying your salary or salary delay:
A) Approach Labour Commissioner:
In the event, if the employer doesn’t pay your salary, you can approach the work commissioner.
They will help you to reconcile this matter and if no solution is reached in time, the commissioner will hand over this matter to the court whereby a circumstance against your employer may be pursued.
B) Professional Dispute Act:
The Employee/Worker can file a suit under Section 33(c) of Industrial Dispute Act, 1947 recovery of money because of from an employer.
When the salary is received from the company, the staff himself or any other person authorized by him in writing on his behalf can claim to retrieve the money.
In case of the employee dies, the authorized person or future heirs make an application to the labor court for recovery of money credited.
The court will further issue a certificate on being satisfied that the salary arrives and the collector shall proceed to recover the same.
If any question arises as to the amount of money due or as to the amount at which such benefit should be computed, it would be computed according to rules under this Work.
Monthly Salary Distribution Requirements:
A person is employed in an establishment with a wage not more than one thousand, the salary to the particular person shall be paid before the expiry of the seventh day.
A person with the wage of more than one 1000 should be paid before the expiry of the 10th day.
If the worker is terminated by the employer the wages attained by him shall be paid before the expiration of the other working day from the day his employment is terminated.
Work Court Time Line:
Instances need to be decided by such labour court within period not exceeding Three A few months provided that the place that the presiding officer of a time court considers it necessary or expedient so to do, he may for reasons to be registered in writing, extend such period by such further period as may this individual think fit.
What if the company is not paying with a fraudulent or dishonest intent?
If an employee is damaged by the company’s fraudulent activities, then he may seek some strong actions.
The next remedies would be available in such instances:
Company Fraud Punishment:
- Section 447 of Companies Act, 2013 lays down punishment for fraud.
- A person should be accountable for imprisonment not less than six months time which may extend to a decade.
- Fine, not less than the amount involved with fraud which may extend up to three times of the fraud amount.
- Subsequent measures can be taken under Section 447 of the Act.
- An employee can also data file a criminal case up against the company under Indian Cárcel Code.
First Step To recover unpaid salary:
Stage 1: We highly recommend sending a legal notice enumerating all the activities that you might take from a credible lawyer. Before heading to a lawyer, ensure that they have some track record to do such work to recover your unpaid salary.
Step 2: If this does not work, approaching police for a cheating case, where there are enough facts for such fraud, is critical. At this time, it is important to prepare a detailed case file to give to police, and your legal professional should help you in this. A majority of such grievances are not accepted thanks to weak drafting and deficiency of prima facie proof. This is when a good legal professional can produce a great deal of difference.
Step 3: Exactly where the criminal case is impossible or does not produce results, we recommend heading for a summary suit or labor court, as the case may be. In our experience of handling such matters in large numbers, we can say that not more than 10% of such disputes need to go to this stage if the matter was taken care of well at earlier periods. Challenge is a simple fact legal professionals are more comfortable and earns more money at this stage, so if they don’t have your desire for mind they might hurry for this stage.
Significant things to keep in mind if you are trying to recover your unpaid salary,
The notice is a very important psychological tool, and getting the salary in less time is a psychological game. In the event that the employer understands the consequences quickly, he may negotiate before you need to attend court, which keeps costs low as well. On the other hand, just one or two legal representatives do this kind of because it might not exactly be very profitable for them.
There are many cases in India where the employer does not pay the salary for a month or couple of months and simply get away with the same. A good example is of Kingfisher Airlines. When ever it shut down their operations, many staff were not paid their dues.
Also, Check the article about How to Withdraw your EPF online for the Employee.