What To Do If Salary Or Wages Are Not Paid On Time?

Payment of salary on time is not only a basic expectation but a legal right of the employee. Timely payment of wages is the subject matter of labour laws in India, which include the Payment of Wages Act, 1936; the Minimum Wages Act, 1948; and various state Shops and Establishments Acts. The courts have held umpteen times that delayed payment of salary or non-payment of salary is contrary to the right to livelihood guaranteed under Article 21 of the Constitution of India. 

However, the salaries are delayed or sometimes not paid by the employers to the employees, especially in private and unorganised sectors. If your wages are not paid on time, strong legal remedies are available to you. This article explains those remedies, supported by relevant case laws and practical steps you can take.

What Laws Protect You If Salary Is Delayed?

Payment of Wages Act, 1936: The First Line of Defense

This Act ensures timely salary payment, especially for those earning up to ₹24,000 per month. In one of the client’s matters, it is seen that the Labour Commissioner awarded compensation that was five times the delayed wages. It proves the law can work strongly in your favour.

Minimum Wages Act, 1948: Protection Against Exploitation

If your employer pays less than the minimum notified wages, you can directly complain. Courts have even treated non-payment of minimum wages as forced labour.

State Shops and Establishments Acts: Your Local Shield

These laws differ across states but are powerful tools. For example, in Delhi, we have helped employees use this law to claim both salary arrears and compensation for unfair labour practices.

Industrial Disputes Act, 1947: When Many Employees Face Delay

If multiple employees are affected, you can raise a collective industrial dispute. Unions often succeed faster because the law views collective non-payment as a serious violation.

IPC/BNS Remedies: When It Becomes Criminal

There was a case where an employer withheld salary with the intention of shutting down operations and disappearing. Filing under Section 406 IPC (criminal breach of trust) forced the employer to settle quickly.

Practical Steps Employees Can Take (Based on Real Cases)

• Talk to the Employer First: In many cases that is handled, a polite but firm written request was enough. Employers sometimes delay due to genuine cash flow issues, and a reminder works.
• Send a Legal Notice: When reminders fail, a Legal Notice drafted by a lawyer almost always gets attention. In one case, an IT company cleared six months of pending dues within a week after receiving a notice.
• File Before Labour Commissioner: This is cost-effective and fast for employees under the ₹24,000 salary threshold. It is seen that the Commissioners impose penalties on employers who repeatedly delay wages.
• Civil Suit for Higher Salaries: For senior employees outside the scope of the Payment of Wages Act, a civil recovery suit works. In one case, a senior executive recovered ₹18 lakh in dues after approaching civil court.
• Criminal Complaint: If fraud is involved, do not hesitate to file an FIR. We have advised employees to take this step when employers tried to cheat multiple staff members.

What Courts Have Said: Landmark Judgments

• Glaxo India Case (1984): Withholding salary amounts to unfair labour practice. Employees were entitled to back wages with interest.
• Anoop Sharma Case (2010): The Supreme Court ruled that no employee can be deprived of legitimate dues, and arrears must be cleared promptly.
• Delhi High Court in Satish Kumar (2007): Salary delay was held to be a violation of employee rights, and compensation was awarded.

These cases are often cited in our notices and petitions to strengthen the employee’s position.

Real Challenges Employees Face

• Fear of losing the job if they complain.
• Employers exploiting loopholes in contracts such as “salary depends on company’s financial health.”
• Lengthy litigation, although many cases settle early once legal pressure is applied.

From experience, employees who act quickly, keeping records, sending notices, and approaching the Labour Commissioner, see results much faster than those who wait in silence.

Conclusion 

Salary delays are not just unfair, they are illegal. As lawyers, whether it is through the Labour Commissioner, a legal notice, or even criminal remedies, you can recover what you rightfully earned.

Your salary is your right. If your employer withholds it, take action, because the sooner you assert your rights, the sooner you will get justice.

One can talk to lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. Can I resign if my salary is not paid?

Yes. You can resign, but it is better to secure pending dues through a legal notice or complaint before leaving.

2. What are the documents required to file a salary recovery case in India?

The appointment letter, salary slips, bank statements, employment contract, and any written correspondence with the employer. 

3. Can I claim interest or penalty on delayed salary?

Yes. Under the Payment of Wages Act, compensation up to ten times the delayed amount may be awarded in some cases.