If an employer deprives an employee of their salary or delays, then an employee can send a legal notice for non-payment of salary to the employer or company.
To draft a legal notice to recover payments, seek the help of a good advocate. You can also check out a legal notice for non-payment of salary in PDF format attached herewith.
You can send a legal notice for non-payment for salary in India to clear the outstanding dues from the employer, which is also known as a Legal Notice to Company for Full and Final Settlement. This follows a specific format.
There are various legal processes that an employee can take up in order to recover their wages or salary such as:
- One of the first steps is to send a good notice from any credible lawyer who basically has some kind of track record of salary matters.
- But before getting into the details, you should know some of the basic concepts dealing with the Indian Labour laws, which deal with main issues regarding non-payment of salary and wages.
- The employee can consult a lawyer and send a legal notice to the company for clearing gratuity.
- You can send the employer at any point in time, a legal notice for pending payment and money to the employee.
At MyAdvo, we have been looking into such cases recently. We are deciding to share some of our best strategies for the benefit of everyone. You can send a legal notice for disbursement of salary when money becomes due with the help of an experienced lawyer who has attained great expertise in resolving employment related issues.
Consult: Expert Employment Lawyers in India
Table of Contents:
Problems faced by the employees in terms of payment in India
One of the most common problems faced by Indian youth is non-payment of salary by their employer.
A young employee who faces these problems feels helpless. Neither he/she can force the employer for making a payment, nor consult an advocate for fear of huge legal expense.
But with the help of this article, anyone can get a proper direction to cope up with the situation. One should follow a specific format for legal notice for not paying salary while sending.
It is a very common practice in India for the employers to deny the respectable salary to the employees, especially prevalent when firing employees.
The employers carry a notion that the employees don't have an option or any resource by which they can file a case against the employer.
However, the reality is that there are various things that an employee may do. Such, which can land an employer in serious trouble. Like if an employee feels, then he/she can send a legal notice for non-payment of salary.
The employer has the right to send a reply to legal notice for payment due to the employee.
However, one thing to keep in mind regarding the situation is, that the same is not available in consideration to the public domain. In this kind of situation, an employee can send a legal notice for not paying salary.
Another thing to keep in mind is that any advice by the lawyer in this scenario comes at a cost. The employee can send a legal notice to the company for outstanding salary clearance.
A Little Know-How of the Wages Act
India has a complete law on the payment of salary known as payment of Wages Act. Although this does not apply on all of the levels of the employees, it usually does apply to all of the low wage labourers.
As effective from September 2012, the Wage Ceiling that has been put forward under the Payment of Wages Act 1936, there has seen an increase to a total average wage ceiling of around 18,000 INR per month.
This has been pursuant after a notification that has been passed by the Indian Government. Legal notice to company for salary can be sent only the aggrieved employee.
The labourer can send a legal notice to company for full and final settlement. If a labourer doesn't get cover Act, there are still various remedies that are still maintainable.
According to section 4 of the Payment of Wages Act, the fixation of wage period, each and every person is actually responsible for the complete payment of wages under section 3.
Under this particular section, the period will be fixed due to which such wages are going to be payable. There is no such wage period that should actually extend to one month.
A legal notice to company in India is to be sent when PF becomes due.
What are the monthly salary distribution requirements?
Some of the requirements in this aspect include -
A person with a wage less or equal to Rs. 1000, if working in an establishment, then the wage needs to be paid to that particular person before the expiry of the seventh day.
A person who has a wage of more than 1000, will get their payment before the completion of the tenth day.
If the employer, however, terminates the employment, then before the completion or the expiry of the second working day, the employee will get the payment of wages.
This basically means from the day of terminating his/her employment.
Must Read: Legal Notice for Breach of Contract
What steps can you take as an employee?
Some of the main remedies that are available to the employee when the employer does not pay the salary to include:
Approaching the Labour Commissioner:
- If the employer does not pay up the salary then the employee can actually approach the Labour Commissioner.
- The Labour Commissioner will actually help in reconciling the matter.
However, if the Labour Commissioner reaches no solution, then the same will be handed over to the Court. Then, you can file a case against the employer by sending a legal notice for outstanding payment.
The Industrial Dispute Act:
- Under the Industrial Dispute Act, an employee may file a suit after sending a legal notice for non-payment of salary.
- One can file a suit under section 33 (c) for the recovery of the money due from the employer.
- In scenarios, where the salary is due to the employee may claim the recovery money by themselves or any other party having the authorization to do so in writing.
- A legal notice for unpaid salary can force the employer to clear the dues.
- If an employee dies, then heirs or the authorized person may apply to the Labour Court for recovery of the money due.
After satisfaction, the Court in this scenario may actually further issue a Certificate.
The Court needs satisfaction that the salary is due and the Collector may actually proceed in recovering the same.
If there are any questions about the amount of the money due or as to the total amount of such benefits; then, we compute it as per the rules that have been set under this particular Act.
A legal notice for pending payment will act as a warning sign to the employer to fulfil his duty.
Labour Court Timeline
Within a certain period without any extension, the Labour Court decides a timeline.
The time frame is around three months, where the Presiding Officer of the certain Labour Court deems it expedient or necessary to do so.
The Presiding Officer may for certain reasons in writing actually extend the time frame as he/she deems fit.
The Labour Court will also look into the fact whether legal notice for pending payment of provident fund has been sent to the employer.
What if the company is not paying with a dishonest or fraudulent intent?
If the company’s fraudulent activity affects the employee, then he or she may seek strong actions. The remedies in such scenarios include -
According to section 447 of the Companies Act 2013, the punishment relating to fraud has been laid down.
The person who is liable will face nothing short of imprisonment of less than six months. This may even extend to ten years.
Including a fine which is not less than the amount of the fraud. It may extend up to around three times of the total fraud amount.
One can take various other measures under Section 447 of the Act.
The employee may also file a criminal case against the said company under the Indian Penal Code.
Legal notice to an employer for non-payment of salary is to be taken seriously by the employer and the management of the establishment where the employee was working.
Notice for payment due can be sent either to the manager or to the person-in-charge of the place where the employee was employed.
Legal notice to a company can also be presented in the Court as evidence of non-payment of money. Such legal notice sent to company will act in favour of the employee in the Court of Law.
The advocate fees for legal notice for payment recovery vary from advocates to advocates.