Employer Not Paying Salary? Your Options — Labour Commissioner, Notice and Court

Start by building the paper trail

Unpaid salary cases are won on documents, and most of them are already in your inbox:

• Offer letter / employment contract — your salary, notice period and dues
• Salary slips and bank statements — showing what was paid and when it stopped
• Resignation / termination communication — dates matter for full-and-final claims
• Emails or messages chasing the payment, and any replies acknowledging the dues

Before anything formal, send one clear written demand: the months and amounts due, reimbursements, leave encashment, and a deadline (7–15 days). Send it by email to HR and management with a copy by post if possible. If the company acknowledges the dues even once in writing, your case becomes much stronger.

A ready-made demand letter format is linked below on this page.

Know which track you're on

Indian law treats employees differently depending on role and pay, and the right forum follows from that:

| Your situation | Primary route | | --- | --- | | Worker / staff / non-managerial role | Labour Commissioner complaint; claims under wage law | | Managerial or supervisory role, higher salary | Civil suit for breach of contract (summary suit where the claim is clean) | | Still employed, wages delayed every month | Labour department complaint; collective action if it affects many staff | | Company appears insolvent / shut down | Recovery prospects need advocate assessment; insolvency claims are possible for larger operational debts |

The old Payment of Wages Act framework (with its wage ceiling for coverage) is being replaced by the Code on Wages, 2019; enforcement machinery on the ground still runs through the state labour departments.

Route 1 — Labour Commissioner (free, conciliation-first)

For most non-managerial employees this is the practical first stop:

1. File a written complaint at the local labour office (many states also accept online complaints) with your employment proof and dues calculation.
2. The office issues a notice to the employer and calls both sides for conciliation meetings.
3. Most employers settle here — attendance is compulsory in practice, and continued default invites prosecution and recovery proceedings.
4. If conciliation fails, the dispute can be referred onward (labour court/tribunal for workmen) or you fall back to the civil route.

Cost: nil. Time: first hearings usually within weeks; settlements commonly within 2–4 months.

Route 2 — Legal notice, then civil recovery

For managerial employees — or in parallel with the labour route — the sequence is:

1. Advocate's legal notice to the company demanding the exact amount with interest, documents (relieving letter, experience certificate, Form 16), and a 15-day deadline. This alone resolves a large share of cases: an itemised demand from an advocate signals that a suit will follow.
2. Civil suit for recovery if the notice fails. Where the claim is based on written documents (contract + salary slips), a summary suit under Order 37 CPC can be filed — the company must get the court's leave to defend, which shortcuts delay tactics.
3. Interest from the due date and costs can be claimed in the suit.

Other levers that work

• PF and gratuity are separate rights. Unpaid PF contributions can be complained about to the EPFO, and gratuity (if you served 5+ years) to the Controlling Authority under the Payment of Gratuity Act — both independent of the salary claim.
• Cheque bounce. If the employer gave a cheque for dues that bounced, the Section 138 criminal route applies — see our cheque bounce guide.
• Group claims. If several colleagues are unpaid, coordinated complaints get faster attention from the labour office and more settlement pressure.

Costs and expectations

| Step | Cost | Typical outcome window | | --- | --- | --- | | Written demand yourself | Free | 1–2 weeks | | Advocate's legal notice | ₹500 – ₹3,000 (WakilBhai: ₹999) | Response within the 15-day deadline in many cases | | Labour Commissioner complaint | Free | 2–4 months to settlement in typical cases | | Civil / summary suit | Court fee on claim + advocate's fee | Months to years; summary suits faster |

One caution: avoid signing a full-and-final settlement receipt for a partial amount unless you intend it to be final — courts give such documents weight. If pressured, add the words "received under protest, balance claimed" before signing, and consult an advocate.