What to do if your employer is not paying you?

When faced with the disconcerting situation of an employer failing to fulfill their obligation of timely salary payments, employees find themselves in a perilous position that demands careful consideration and indeed strategic action. The non-receipt of a salary not only poses immediate financial challenges but also raises questions about job security and the employer-employee relationship. In response to such a breach of commitment, employees can navigate a well-defined legal process to reclaim their rightfully earned salaries.In India, multitude labor laws address issues related to non-payment of wages or salary, ensuring the protection of the rights of employees. These are:

1.     Code on Wages, 2019:

This recently enacted Code on Wages, 2019 serves as a comprehensive consolidation of regulations governing the payment of wages by employers to employees. This legislation not only establishes the right to a minimum wage for all employees but also addresses the crucial aspects of ensuring prompt and reasonable wage payments by employers.

As Per Section 17, Employer is bound to pay employee for work. If an employee works on a daily basis, their wages should be paid at the end of their work shift. For those engaged on a weekly basis, payment should be made on the last working day of the week, prior to the weekly holiday. Similarly, employees with a fortnightly work arrangement should receive their wages before the end of the second day after the completion of the fortnight. For those on a monthly basis, wages are to be paid before the seventh day of the succeeding month.

In cases where an employee is either removed or dismissed from service, or undergoes retrenchment, resignation, or faces unemployment due to the closure of the establishment,the employer is obligated to pay the outstanding wages within two working days from the occurrence of such event.

(Exception- Above given rights not applicable to employees of the Life Insurance Corporation of India, seamen, dock workers under specified schemes, government department employees, those working for non-profit entities, the Reserve Bank of India, and certain public sector financial institutions.)

How To Execute-

a)     Send Legal Notice to employer with employment contract, Appointment Letter, proof of non-payment. When Legal notice duly served, the employer is obligated to settle the unpaid dues as per the terms specified in service contract.

b)     If employer still employees have the recourse of filing a complaint with the labor commissioner. The commissioner's involvement is geared towards resolving the issue, and if no resolution is achieved, the matter may be referred to court, leading to potential legal action against the employer.

c)      As per section 54 of the code, any employer whopays an employee less than the amount owed under the Code may face a fine up to fifty thousand rupees. And if convicted of such an offense again within five years, they may face imprisonment for up to three months or a fine up to one lakh rupees, or both. So, if employer denies or refuses to pay, then the employee can file a criminal lawsuit

 2. Industrial dispute Act, 1947-

·       As per section 33(C), If an employee is owed money by their employer, they or their representative can apply to the government for recovery.

·       The application must be made within one year of the payment becoming due, but exceptions can be made if there's a valid reason for the delay.

·       If there's a dispute about the amount owed, a Labour Court, appointed by the government, can decide within three months, with a possible extension.

Industry includes any business, trade, undertaking, manufacture or calling of employers and includes any calling, service, employment, handicraft, or industrial occupation or avocation of workmen;

Execution-Employee can initiate legal proceedings, opting for a summary suit according to Order 37 of the Civil Procedure Code or may file for separate relief in Labour Court.