What can I do if my employer is not paying my salary?
Start with a written demand to HR/management with a clear deadline; if ignored, send a legal notice through a lawyer. Then escalate: employees covered by labour law can complain (free) to the Labour Commissioner; managerial/higher-paid employees file a civil recovery suit; and for companies owing ₹1 crore+ an insolvency (IBC) demand notice is potent leverage. Unpaid wages claims move fastest when your appointment letter, payslips and resignation/termination papers are in order.
Unpaid salary and stuck full-and-final settlements are among the most common employment disputes in India — and among the most winnable, because the paper trail is usually clear. The key is choosing the right forum for YOUR role.
The escalation ladder
1. Internal written demand
Email HR and management: amounts due, months, and a 7–15 day deadline. Attach payslips. This creates the record every forum will ask for.
2. Legal notice
A lawyer’s demand notice (₹1,000–₹5,000) often unlocks payment by itself — companies settle rather than face a labour complaint with interest and penalties.
3. Labour Commissioner complaint (for covered employees)
“Workmen” (non-managerial roles) can complain free of cost to the local Labour Commissioner. Conciliation follows; unresolved disputes go to the Labour Court. Claims for wages can carry interest and, under the Payment of Wages Act (for wages up to ₹24,000/month), compensation up to 10x the delayed amount in egregious cases.
4. Civil recovery suit (managerial/higher-paid employees)
If you are outside “workman” protection, sue for recovery of dues under your employment contract — a summary suit (Order 37 CPC) is faster where the claim rests on written documents.
5. IBC demand notice (powerful for ₹1 crore+ defaults)
Employees are operational creditors. For defaults of ₹1 crore or more, a Section 8 IBC demand notice threatening insolvency proceedings at NCLT concentrates a company’s mind wonderfully. Group claims by multiple employees can cross the threshold together.
Special heads: gratuity, PF, notice-period pay
- PF: complain to EPFO (EPFiGMS portal) — the EPFO recovers with damages and interest from defaulting employers.
- Gratuity: after 5 years’ service, claim via Form I; disputes go to the Controlling Authority under the Payment of Gratuity Act.
- Full & final: should be settled within 2 days of exit under the Wage Code norms as they apply; in practice demand it in writing within the week of leaving.
Evidence checklist
- Appointment letter/contract, increment letters
- Payslips + bank statements showing the gap
- Resignation/termination correspondence, relieving letter
- Emails demanding payment and any replies/promises
If the company is shutting down or vanishing
Move fast — labour dues rank ahead of many creditors, but only if claimed. File the labour complaint immediately and consider a group IBC action; directors’ personal assets are generally protected, but cheques they signed that bounce open Section 138 criminal routes.
This article is general information, not legal advice. For advice on your specific situation, consult a qualified professional.
Frequently asked questions
How long can my employer legally delay salary?
Wages are due within the wage period — for monthly-paid employees, by the 7th (establishments under 1,000 workers) or 10th of the following month under the Payment of Wages framework. Anything beyond that is default; the clock for interest and complaints starts running.
I am a manager — can I still go to the Labour Commissioner?
Managerial and supervisory employees above wage thresholds generally fall outside 'workman' protection, so the Labour Court route may not be open. Your remedy is a civil recovery suit (a summary suit if dues rest on documents) — the demand-notice step works the same.
My employer says business is bad — can they just not pay?
No. Financial difficulty is not a legal defence to non-payment of earned wages. It may affect settlement negotiations, but your claim, interest, and (where applicable) penalties stand. If the company is truly insolvent, employee dues get statutory priority in liquidation.
What about my notice period buyout and leave encashment?
Contractual dues — payable per your employment terms. Include them in the demand and the claim: earned leave encashment, notice pay, bonus due, reimbursements. Quantify each head with documents.
How long do I have to file?
Do not sit on it: Payment of Wages Act claims have a 12-month window (condonable), civil suits 3 years from when dues became payable, gratuity claims should be made within 90 days of exit (delays can be condoned). Sooner is always stronger.
