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Company not paying due salary amount after resignation. What to do?
28-Feb-2023 (In Labour & Service Law)
Dear Sir, I have joined R-interactive in Jan 2016 as technical head. From last almost one year company was not paying salary on time. This was too much disturbing because of the monthly commitments. I have resigned and joined new company. it has been conveyed to me that pending salary will be deposited within a week.in fact company is not willing to pay. I am regularly sending reminder emails and messages to Directors to release my pending salary amount. but got reply I will next week and next week or 2-3 days every time he told me. My situation is really bad. I have not received my 2 months salary. Salary is the only income for me. due to that I am not able to pay my personal loan EMI. I went to office to convey the same to management, they are least bothered. They are not ready to speak also. I am seriously in big trouble. need your Help. Please Guide me for the same.
If your job was of a supervisory nature as per your 'Senior' Designation, we suggest that you should send the Company a Legal Notice by way of Regd. AD and Speed Post for payment of your salary and other dues within a stipulated time period or else you shall initiate legal proceedings.
In case the payment is not released by the company within the time period, you can then file a civil suit against the company for recovery of salary and other dues as debt. The amount payable to you is in the form of debt on the company and you can hence initiate an action for recovery of this debt. The court fee is about 2-2.5% of the amount you are claiming.
On the other hand,
If your nature of duties would come within the purview of "workman" irrespective of ostentatious designation adorned upon you, then you can file a case before the authority under the Delhi Shops & Establishment Act (if you are working in Delhi), who is the Deputy Labour Commissioner.
Applicability of the Industrial Disputes Act:
The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein. Every person employed in an establishment for hire or reward including contract labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not apply to persons mainly in managerial or administrative capacity,persons engaged in a supervisory capacity and drawing > Rs.10,000 per month or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.
Alternatively, you can file a claim petition before the authority under Payments of Wages Act. A labour court judge is generally designated for this purpose. Or alternatively, you can file an application under Section 33 C(2) of the Industrial Disputes Act.
In case the payment is not released by the company within the time period, you can then file a civil suit against the company for recovery of salary and other dues as debt. The amount payable to you is in the form of debt on the company and you can hence initiate an action for recovery of this debt. The court fee is about 2-2.5% of the amount you are claiming.
On the other hand,
If your nature of duties would come within the purview of "workman" irrespective of ostentatious designation adorned upon you, then you can file a case before the authority under the Delhi Shops & Establishment Act (if you are working in Delhi), who is the Deputy Labour Commissioner.
Applicability of the Industrial Disputes Act:
The Industrial Disputes Act extends to whole of India and applies to every industrial establishment carrying on any business, trade, manufacture or distribution of goods and services irrespective of the number of workmen employed therein. Every person employed in an establishment for hire or reward including contract labour, apprentices and part-time employees to do any manual, clerical, skilled, unskilled, technical, operational or supervisory work, is covered by the Act. This Act though does not apply to persons mainly in managerial or administrative capacity,persons engaged in a supervisory capacity and drawing > Rs.10,000 per month or executing managerial functions and persons subject to Army Act, Air Force and Navy Act or those in police service or officer or employee of a prison.
Alternatively, you can file a claim petition before the authority under Payments of Wages Act. A labour court judge is generally designated for this purpose. Or alternatively, you can file an application under Section 33 C(2) of the Industrial Disputes Act.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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