The Right Step to Delayed Compensation

It is quite common in India for employers to deny salary to employees, especially at the time of firing them. There are several legal processes that can be followed by an employee to recover salary or wages. 

A well-drafted Legal Notice should be sent to the Company thereby giving them an opportunity to clear dues before you go ahead with the case. A person should have proper evidence to prove that he/she has not received the salary. 

Section 4 of the payment of wages Act states – Fixation of wage period every person responsible for the payment of wages under Section 3 shall fix periods in respect of which such wages shall be payable. No wage period shall exceed one month.

Some Laws to safeguard Employee: -

• 1. You may file a complaint addressing the Labour Commissioner to resolve the dispute. If the issues are not resolved, then the Labour Commissioner will refer the matter to the Labour Court and a case against your employer will be filed in the court.
• 2. You may even file a suit against your employer under the Industrial Dispute Act to recover the dues.
• 3. If a suit against a company is filed for recovery of money with interest, then it becomes fraud under the Companies Act, 2013.

Important Points to keep in mind - The notice is a very important psychological tool, and getting a

salary in less time is a psychological game. If the employer understands the consequences quickly, he will settle before you need to go to court, which keeps costs low as well. However, only a few lawyers do this kind of work because it may not be very profitable for them. There are many cases in India where the employer does not pay a salary for a month or couple of months and easily get away with the same. A good example is of Kingfisher Airlines. When it shut down its operations, many workers were not paid their dues. 
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Don't hesitate to seek legal advice before taking any step.         

For any further assistance, you may contact Solutions Legalis.