What happens if employer does not pay salary on time or delays it forever?

Ask the Community Payroll
,
1

Hi,

What payment of wages act states for employees not getting salary paid or delaying extended time ?

2 Likes
2

This is illegal.
Thank you.

2 Likes
3

The law on payment of salary called Payment of Wages Act, though it does not apply to all levels of employees but helps for whose wage is less than Rs. 24,000/- per month . The Payment of Wages Act, 1936 regulates payment of wages to employees (direct and indirect). The act is intended to be a remedy against unauthorized deductions made by employer and/or unjustified delay in payment of wages. More information in this article.

3 Likes
4

For many states, Shops act also states the salary payment due dates and violation could invite non compliance.
For Karnataka, it is before 7th of next month. For a few states, before the expiry of the 5th day after the last day of the wage period. For some states, not later than the 10th day of the month immediately succeeding that in respect of which such wages are payable. Surprisingly for some states, the act is silent

2 Likes
5

Hi Manjunath,

When the employer doesn’t pay the salary on time or delays it without a justification and consent of an employee or a worker, the aggrieved employee or worker may take any of the following actions as well:

  1. Serve a legal notice to the employer seeking the payment;
  2. Approach Labour Court seeking remedy;
  3. For criminal liability file a police complaint on the grounds of cheating/fraud (punished under Indian Penal Code as well as Section 447 of the Companies Act);
  4. For civil remedy file a Summary Suit before the Civil Court under Order 37 of the Code of Civil Procedure.

Other than the above, the workforce may post negative remarks/feedbacks about the employer on social media.

Regards,
Bhuvana Anand

1 Like