Introduction

Unpaid salaries are a major problem that most employees encounter in India. Not only unethical but even illegal. All the employees deserve payment for the work done. Should an employer fail to pay the agreed wages or salary, an employee can take legal steps to get justice. This includes filing a complaint against the employer for unpaid salary, which is a fundamental right of every worker. This article gives a detailed procedure on how to file a complaint against an employer regarding non-payment of salary. Your rights as an employee and the legal remedies as also the modes of redressing the grievance by approaching the court of law or government redressal mechanisms will also be discussed.

Understanding your rights: employee rights to unpaid salary

In India, the law strongly safeguards the right of an employee to get his/ her salary at the right time. According to the Payment of Wages Act 1936, employers have a legal responsibility to pay wages without unreasonable delay. Failure of an employee to get a salary according to the agreed terms amounts to breaching labor laws. Moreover, in the Minimum Wages Act, all workers, regardless of whether they are skilled, unskilled, or contractual workers, have the right to reasonable and due compensation. Underpayment or non-payment of salary not only constitutes an unethical act but also amounts to a punishable act under Indian labor laws.

The main rights of the employee concerning unpaid salary are:

• The right to enjoy salary payment as an agreement according to the employment contract.
• The entitlement to accrue compensation in the form of wages based on work done regardless of whether one is quitting the job or being fired.
• The right to file a complaint against an employer for unpaid wages.
• The right to sue to receive a salary that was not paid in a court or tribunal.
• The right to refer to the Labour Court or the Labour Commissioner to be resolved.
• The privilege to interest and compensation on outstanding salaries.

Whether you’re working in an MNC, startup, or as a contractual employee, these rights are enforceable. If your salary is delayed or withheld, you can file a complaint against an employer for unpaid salary and seek rightful compensation.

Common Reasons for Unpaid Salary

It is a rather frustrating situation that many employees in India do not get their salaries in time or get no salaries at all. Employers have been known to give all sorts of reasons, but it has to be known that not paying the salary is against the law in the Indian labor crusade. As a full-time employee, a contractual worker, or a trainee, you are entitled by the law to get your salary for the job you have been doing.

These are the most prevalent excuses that salary delay or salary withholding is on the part of employers:

Financial Difficulties:

Firms that suffer economic deficiency will have difficulties paying out wages. This however is not a legal justification. Employees have no choice but to complain that the employer has not paid their salary, and this action can be done despite the financial status of the company.

Performance Disputes:

Some employers fail to pay a salary based on poor performance. The employee is also entitled to get a salary on time, even when the performance is under review of previously completed work.

Termination Without Final Settlement:

If an employee is dismissed or quits the job, yet the employer does not clear the final dues, then the employee may take legal action in regard to salary arrears. This is pending salary, bonus, and encashment of leaves.

Deliberate Exploitation:

In most situations, employers withhold pay as a method of maneuvering or bullying. This is being so against the rights of the employees and one may make a complaint of the salary not being credited to the Labour Commissioner or the Court.

Violation of employment Contract:

A breach occurs when you fail to comply with the clauses of the employment contract as regards payment of salary. With the help of a civil or labor court, employees may soothe his/her grievances by seeking legal help for unpaid salaries.

Salary has to be given per agreed terms regardless of any reason. When you have any of these concerns, you are within your rights to file a complaint against an employer about unpaid wages and be granted justice under the available laws.

Step-by-Step Guide: How to File a Complaint Against Employer

In case you are not getting your salary, then you should follow the steps in seeking redressal:

Speak to Your Employer First

Begin by initiating a career or professional discussion with your reporting manager, HR department, or finance section. Cases arise when salaries are delayed due to technical or short-term money problems.

What to do:

• Write a polite message to clarify your salary payment.
• Request an estimated period for disbursal.
• Keep a history of a conversation.

In case the problem is not solved, proceed to the following stage.

Send a Formal Email or Letter

In case of a breakdown of communication verbally, bring the matter up through formal complaints. Write your coherent email or letter explaining the matter.

Put in your email/letter:

• Joining date and designation.
• Salary on the due and months out.
• and salaries or fiche dapp (letter of appointment).
• Demand payment in a specified and limited time (e.g. 7 days).

This document can serve as evidence in your complaint against an employer for unpaid salary.

File a Complaint with the Labour Commissioner

When your employer refuses to act on your requests, then it is time that you file a lawsuit. You can file a complaint against an employer for unpaid salary with the Labour Commissioner.

Procedures to lodge an offline complaint:

• Apply in the office of your district or state Labour Commissioner.
• Subscribe to the official complaint form.
• Enclose supporting evidence such as your offer letter, ID proof, pay slips, and emails.
• Make a complaint and have a copy stamped as received.

The Labour Commissioner has the right to call your employer to hold a hearing. In case it is proven guilty, the employer will be ordered to compensate you.

File Online Complaint Against Employer

The right to file complaints about the salary will be offered in many states in India using online access. It is an easy and time-saving procedure.

Procedure to seek grievance online on unpaid salary:

• Check the official Labour Department of your state.
• On the home page, just click on Grievance Redressal or File a Complaint.
• Sign up on your mobile number and submit the necessary papers.
• Fill and submit the grievance and retain the tracking ID.

Some states also have apps for labour grievances where you can file a complaint for unpaid wages.

For central government complaints, you can also visit the Ministry of Labour’s grievance portal.

Send a Legal Notice

In the case of failure of the labor department route, seek the services of a legal expert and order a legal notice.

What should the legal notice contain:

• Full work experience.
• Information concerning the outstanding salary.
• The reference to the contract or the agreement on the salary.
• Pre-suit payment clock.

A legal notice creates pressure on the employer, and it can generally help to get salary dues.

Approach Labour Court for Legal Action

In cases of failure of any of the options, lodge a case in the Labour Court.

How to go on:

• Seek the services of a labor lawyer or even a legal aid.
• Write and present a petition.
• Provide a document of employment and contact information to the employer.
• Appear before the court at the scheduled hearings.

The court is able to order your employer to pay the short salary together with interest. Penalties can also be given such as fines in severe cases.

Important Documents Required

To file a complaint against an employer for unpaid salary, attaching the correct documents is essential to support your claim. These proofs will be evaluated by the Labour Commissioner or the Labour Court to examine your complaint, therefore, make everything simple and correct.

Documents that may be required:

• Offer letter or employment contract: This defines your designation, salary, and employment terms.
• Salary slips or old bank statements: These also state how much you were getting, and they will establish the basis of where you failed.
• Communication with HR or the employer via email or WhatsApp: Such communication is evidence that you tried to ask the employer to provide the money and tried to solve the problem.
• Identity (Aadhaar card, PAN card, etc.): Proof To prove that you are who you claim to be when lodging a formal complaint.
• Resignation letter/ termination letter (If applicable): This will assist in establishing your work tenure and dues before the employment.

Providing these documents will strengthen your case if you decide to file a complaint against an employer for unpaid salary. Incomplete or missing documentation may delay the resolution process.

Legal Options Available for Employees

If your employer refuses to pay, you have several legal options. These laws provide strong protection when you file a complaint against an employer for unpaid salary.

Complaint about the Payment of Wages Act, 1936: 

This Act applies to employees who earn less than 24000 INR a month. You can launch a grievance under your local Labour Commissioner. The Act is also trying to guarantee that workers are not paid more than seven days (or 10 days in larger establishments) after the end of the wage period. In case of delay or rejection, you can present a lawsuit. To raise a grievance online, visit https://samadhan.labour.gov.in.

Apply under the Industrial Disputes Act, 1947: 

The act provides the workmen with their rights (generally, those outside the managerial or supervisory functions). You can present an industrial dispute with the Labour Court or Tribunal in case your employer does not pay your full salary legally or does not pay dues after termination.

Civil Suit to recover: 

In case your wages cross the upper limit mentioned under section 17 of the Act or you are in a managerial capacity, you can file a civil suit under the Indian contract law regarding breach of contract. This enables recovery of unpaid salary together with interest. You will be able to avail a civil court through an advocate.

File a Criminal Complaint: 

If found to have committed fraud, cheating, or even harassment (such as providing fake salary slips or fictitious transfers), one can lodge a criminal complaint based on Section 406 (crime of breach of trust) and Section 420 (cheating) of the Indian Penal Code. It would be possible at your local police station or even on the internet by logging into https://cybercrime.gov.in in case of cyber-related salary fraud.

EPF or ESI Non-payment Complaint: 

In case your employer has deducted your PF or insurance deposit but did not pay it, then you can complain to the EPFO portal through this link: https://www.epfindia.gov.in. You may also make a grievance or report the matter to the ESI Corporation through https://www.esic.nic.in.

These legal avenues provide structured and enforceable ways to claim your unpaid salary. It is recommended to consult a labor lawyer if you’re unsure which option applies to your case.

What If You Are on Probation, Contract, or Freelancer?

Even if you’re not a permanent employee, you can still file a complaint against an employer for unpaid salary:

Probationer: 

On probation, the workers are allowed to receive their wages as stated in the appointment letter or letter of employment negotiations. Your fundamental rights of labor are not taken away during the probation period. If the employer fails to pay your salary during probation, a case may be filed against unpaid salary at the Labour Commissioner or the Labour Court. Employers are not able to put off wages using probation.

Contractual Worker: 

Your rights are controlled by the provisions of your contract and by sections of the Contract Labour (Regulation and Abolition) Act, 1970, of which you may be a contractual worker. In case your employer fails to remunerate you even after the breach of contract terms, you are at liberty to report the case to the Labour Department. The contract workers are entitled in every responsibility to complain to the employer about unpaid salary in case they have already performed the duty as promised.

Freelancer: 

Even though freelancers and consultants fall under this bracket, they are not considered employees, and they also have legal recourse. A breach of contract can be brought under the Indian Contract Act in the form of a civil suit. Even in the case where your client is a registered business and you are employed to provide a specific service the consumer court might be followed. In case you have evidence after work and communication, you can demand your rights with the use of a judicial letter and a court trial.

Freelancers and temporary workers are usually exploited by employers and clients thinking that they are not likely to sue. Regardless of your job type, you have the full right to file a complaint against an employer for unpaid salary. Indian law, however, is protective of each kind of worker. It is always good to write your work and have emails or written communication and do not fear to report no pay-salary even when your position is not permanent.

Can You Claim Interest or Compensation?

Indeed, you have an absolute right to profess an interest as well as compensation in the case that your employer has not released your salary to you. The Indian labor laws and the court decisions are really favorable to the employees involved in the case regarding unpaid salary. In a situation when you file a complaint against an employer for not paying you the wages, you must mention the head of compensation and interest.

Interest on Delayed Salary: 

The interest given on delayed salary is commonly given by the Labour Court on the amount of delayed pay received. The interest is what puts you back to where you were in adding to what you deserve. Depending on the delay and amount in question, the rate could be different, yet on average it is between 6 and 12 percent per year. In writing your legal notice or petition never forget to claim interest.

Mental Harassment: 

Courts may also order the employer to compensate you for harassment at the mental level due to the action of the employer, such as unreasonable delays, excuses, threats, etc. All the more so in case you can provide some documented evidence (emails, messages) of maltreatment or intentional non-payment of wages.

Legal Cost: 

When you start using the services of an attorney or go to court, you can be compensated for legal fees. This is to make sure that the price of following your salary will not anymore a burden to you anymore.

To successfully implement such remedies:

• Make sure that you include a mention of demand of interest and compensation in your legal notice.
• Include evidence of correspondence with your employer, including requests and subsequent reminders about salary.
• Make your complaint within the recognized time frame.

There is no reason not to consult a labor lawyer who would assist in adding all the possible claims to your complaint about unpaid salary. The legislation is meant to safeguard the laborers and punish the unscrupulous job actions of the employers.

Complaint Against Employer: Things to Remember

There are some important aspects one has to take into consideration when intending to file a complaint against an employer due to nonpayment of salary. Not only will these precautions safeguard your rights, but they will also be beneficial in the case of a proceeding.

• Stay cool and be professional. Showing emotions or threatening terms can undermine you. Whenever communicating with your employer, make sure that you use proper and respectful language.
• No salary rights should be waived by never signing a document that takes away salary rights until after money is received. Employers are allowed to put some employees under pressure and make them sign resignation letters or full-and-final settlements wherein they have outstanding dues and do not moonlight without consulting a lawyer.
• Timeliness matters. You have to make sure that you submit your complaint within three years since the salary was already due. Though this time is not binding and courts may extend the boundaries to include cases in exceptional circumstances, immediate action will never be prohibited.
• Never resign or even abscond until you get your dues. Quitting employment without properly terminating the job may make it hard to recover unpaid remuneration.
• Make a note and keep all the messages associated with your salary, whether by email, chats, payslips, or appointment letters. The purpose of these documents is to provide important evidence in an action for unpaid salary.
• Do not feel guilty about taking legal action. Irrespective of whether you are a probationary employee, in a working contract, or a permanent employee, the Indian laws regarding labor are there to safeguard employees. A defense of your rights is an example and will not be exploited in the future.

Remember, your salary is not a favor—it’s a legal entitlement. Assert your rights confidently and lawfully.

Conclusion

Any employee has the right to receive timely remuneration against his or her efforts. In case your employer does not pay your salary, then you are at liberty to file a complaint against an employer for unpaid salary.

You can begin by coming to your HR or employer professionally. Should no answer be forthcoming, proceed to lodge an unpaid salary complaint with the Labour Commissioner whether online or offline. issue a legal notice as deemed necessary and resort to Labour Court in case you are not receiving anything even then.

Unpaid wages against employer It is not only a right to find the employer guilty by filing a complaint but it is something that is necessary to take employers at fault. The whole law is in your favor.

Never keep quiet. Record all your findings, seek legal advice where necessary, and move further to ensure that you get back your well-deserved money.

Your salary is your right. Protect it.

References:

• https://www.myadvo.in/blog/send-legal-notice-non-payment-salary-employer-company/
• https://www.advdharmendraassociates.in/post/legal-options-if-your-employer-is-not-paying-your-salary-in-india
• https://restthecase.com/knowledge-bank/legal-action-if-full-and-final-settlement-not-done-by-employer#:~:text=If%20the%20issue%20is%20not,that%20employees%20receive%20their%20dues.
• https://www.legalshiksha.com/post/non-payment-of-salary-know-your-rights

• https://www.legalkart.com/legal-blog/now-get-your-unpaid-salary