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How to Send Legal Notice for Non-Payment of Salary to Employer/Company?

In India, the rate of legal awareness is not very high and there is a lack of implementation of general laws. Therefore, few dishonest employers and companies deprive their employees of their hard-earned money. In such a situation instead of feeling exploited, the employee can send a legal notice for non-payment of salary.
Written by:
Antim Amlan
Published on
12-Sep-19

If an employer deprives an employee of their salary or delays crediting the amount, then an employee can send a legal notice for non-payment of salary to the employer or the 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:

  • Send a well-drafted notice from any credible lawyer who has a track record of salary matters
  • Consult a lawyer and send a legal notice to the company for clearing gratuity
  • Send the employer at any point in time, a legal notice for pending payment

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 the salary, then the employee can approach the Labour Commissioner. However, if the Labour Commissioner reaches no solution, then the same will be handed over to the Court. The employee can then file a case against the employer by sending a legal notice for outstanding payment.
  • 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 money due or the total amount of such benefits then, we compute it as per the rules that have been set under this particular Act
  • Legal notice for pending payment will act as a warning sign to the employer to fulfill his duty
  • The Industrial Disputes Act,1947:
    • Under the Industrial Disputes Act,1947, 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 money due from the employer
    • In scenarios where the salary is due, the employee may claim the recovery of money by themselves or through any other party having the authorization to do so in writing
    • 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

 

A Little Know-How of the Wages Act

There exists a full-fledged law on the non-payment of salary by the employer in India known as the Payment of Wages Act, 1936. Although the Act does not apply to employees on all levels, it usually does apply to all of the low wage laborers.

As effective from September 2012, the Wage Ceiling that has been put forward under the Payment of Wages Act, 1936, there has been 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 the company for salary can be sent only by the aggrieved employee. The laborer can send a legal notice to the company for full and final settlement. If a laborer doesn't get covered under the Act, there are still various remedies that are still maintainable.

According to Section 4 of the Payment of Wages Act on 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 the 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.

Problems faced by the employees in terms of payment in India

One of the most common problems faced by Indian youth is the 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. 

One should follow a specific format for drafting a legal notice for non-payment of salary by an employer in India.

It is a very common practice in India for employers to deny salary to their employees, which is 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 can do.

The employer has the right to send a reply to the 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 a 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.

What if the company is guilty of 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 fewer 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 a company will act in favor of the employee in the Court of Law. 

The advocate fees for legal notice for payment recovery vary from advocates to advocates. Therefore, the employee can send a legal notice to recover payments. Such legal notice for payment due is available here in pdf format.

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.

 

 

Where Can You Find a Good Lawyer?

With MyAdvo you get access to finding good lawyers, who are experts in sending a legal notice. All you have to do is just select one that matches your criteria. MyAdvo acts like a legal concierge. We provide you with a directory of lawyers near you, who have attained great expertise in their respective legal domains. MyAdvo provides the finest legal minds of the industry from over 10,000 lawyers across 500+ districts, right at your screen. Just express your query via mail on consult@myadvo.in or simply call us at +91-9811782573 to resolve any and every kind of legal problems.

External Links:

1. Indian Labour laws - For non-payment of salary by the employer in India

2. Industrial Disputes Act,1947 - An Act to make provision for the investigation and settlement of industrial disputes, and for certain other purposes

3. Payment of Wages Act, 1936 - The Act is intended to be a remedy against unauthorized deductions made by the employer and/or unjustified delay in payment of wages