Salary cheque stopped by company

389 votes

If your salary cheque is stopped during your employment, we suggest you to make a representation to HR. Incase HR fails to respond to representation , send a legal notice through a lawyer thereby demanding your salary cheque amount.

Despite sending a legal notice if they fail to pay you, then file a civil suit thereby demanding you salary alongwith interest 24% ,compensation for mental harassment, cost of litigation. 

We cannot tell you the exact figure of compensation which court can grant because it is discretion of the court.

LawRato LawRato

921 votes

Yes you can sue the company. Under cheque bounce case, you can recover double the amount or two year imprisonment.
And under recovery suit you can recover cheque amount with interest.

Advocate Akhil Verma LawRato

681 votes

If your salary cheque is stopped during your employment, we suggest you to make a representation to HR. Incase HR fails to respond to representation , send a legal notice through a lawyer thereby demanding your salary cheque amount. Despite sending a legal notice if they fail to pay you, then file a civil suit thereby demanding you salary alongwith interest 24% ,compensation for mental harassment, cost of litigation, We can tell you the exact figure of compensation which court can grant because it is discretion of the court,

Advocate Sudershani Ray LawRato

533 votes

By stop salary cheque you mean they didn't pay your salary or they gave you a cheque but issued "stop payment" instruction to the bank? In case of the former option, you should take it up with the HR manager and if that doesn't work, evaluate the possibility of sending a legal notice. Bear in mind that such a path can result in turning relations sour with people at office. A
In case you meant the latter option, you can file a criminal case under section 138 of the Negotiable Instruments Act.
Compensation is always tricky and will depend upon the facts of your case. I recommend meeting a lawyer and evaluating the merits of your case. In case the company has legitimate reasons for delaying salary (such as financial crunch, etc.) you will probably not be entitled to any compensation even if you file a case against the company.

Advocate Dhruv Suri LawRato