Non payment of Salary by my company and also illegally asking a notice

970 votes

Your employer’s action appears legally weak. Non-payment of earned salary and forcing resignation with notice buyout is generally unlawful in India. Key points: Salary for work already done cannot be withheld If you worked the first month, salary becomes a legal right. Employer cannot deny salary merely by saying “performance not as expected,” unless there is a clear written performance-linked pay clause in your appointment letter. Even then, basic/fixed salary cannot normally be zeroed. Forcing resignation is illegal If they are pressuring you to resign, it amounts to constructive termination. When employer is at fault (non-payment of wages), you are not liable to pay notice buyout. Rather, employer may become liable for illegal termination and unpaid wages. Legal position on notice period Notice/buyout applies only when: You voluntarily resign without employer breach, and Salary is being properly paid. Where employer first breaches contract (salary not paid), notice recovery becomes legally challengeable. What you should do now (practical steps) Step 1: Send formal legal email/notice Write to HR and company: Demand release of first month salary within 7 days State that non-payment forced you to stop work (not voluntary resignation) Deny liability for 60-day notice buyout Ask for Full & Final settlement If you want, I can draft a strong legal notice for you. Step 2: File complaint before Labour Authority You may approach: Labour Commissioner Office under Payment of Wages Act / Shops & Establishment Act Claim unpaid salary + compensation Step 3: Legal claim (if amount significant) You can file: Labour case for recovery of wages Civil recovery suit (for salary + damages) Important evidence to keep Appointment letter / offer letter Attendance / login proof / emails / work records Salary discussion messages Any message where they refused payment or forced resignation Legal strength of your case: Strong, if you actually worked and no written clause allows zero salary. If you share: Your salary structure (fixed vs variable) Exact wording in appointment letter about notice & performance Whether termination letter given or only verbal I can tell you exact legal strategy and draft a powerful notice to recover salary and defeat notice buyout.

Advocate Vaibhav Sangam Mishra LawRato

990 votes

In my opinion, the company’s action is not legally sustainable. If you have worked for the entire month and performed your assigned duties, the employer is under a legal obligation to pay your salary. Basic or fixed salary cannot be withheld merely on the ground that your performance did not meet expectations, unless there is a specific written clause in the appointment letter clearly linking the fixed salary to performance targets. Normally, performance conditions are attached to incentives or variable pay, not to the basic salary. Further, if the company has failed to pay your salary despite repeated requests, it amounts to a breach of the employment contract on their part. In such a situation, if you decide to leave because of non-payment, it cannot be treated as a voluntary resignation in the ordinary sense. When the employer commits the first breach, they cannot insist upon strict compliance with the notice period clause or demand a 60-day notice buyout. Legally, a party who is in breach cannot take advantage of its own wrong. You are entitled to claim your earned salary, and the demand for notice pay appears unjustified. Don’t give resignation voluntarily.

Advocate Vani Sharma LawRato