What to Do When Your Employer Doesn't Pay Your Salary

Unpaid or delayed salary is more common in India than it should be — startups running dry, small businesses managing cash flow month to month, and occasionally employers who simply try their luck. Whatever the reason, the law is firmly on your side. But recovering what you're owed requires acting in the right order, at the right escalation level. Here is a clear path through it.

Which law protects you

Multiple statutes cover salary non-payment in India. Which one applies to you depends on your employment type and how much you earn.

• Payment of Wages Act, 1936 — covers most employees earning up to Rs 24,000/month. Requires employers to pay on a fixed date (the 7th of the following month for establishments with more than 1,000 employees; the 10th for others). Unauthorized deductions are separately prohibited.
• Industrial Disputes Act, 1947 — applies to "workmen" in scheduled industries. Non-payment of wages constitutes an unfair labour practice under this Act and can be taken to a Labour Court.
• Shops and Establishments Act — state-specific legislation that governs offices, retail stores, and IT companies. Almost certainly applies if you work in a commercial setting. Pay schedules, deductions, and termination dues are all regulated.
• Employment contract and appointment letter — for managers, senior professionals, and those earning above the statutory threshold, your offer letter is a legally binding contract. Breach of it is actionable as a civil matter even if you fall outside the "workman" definition.

Delay vs. deliberate non-payment — why the distinction matters

A one-time 10-day delay at a cash-strapped small company is a different situation from a second month of silence or an employer who stops taking your calls. The legal remedies are similar but your urgency and approach should differ. Give a short, firm window (7 days after the normal payday) before you move to formal steps. After that window, every day you wait without acting weakens your position — not legally, but practically, because employers become harder to move once delay is normalized.

Build your evidence file before you escalate

Before filing anything, assemble a clear record. Disputes become simple when the paper trail is complete and complicated when it is not.

• Appointment letter or offer letter showing your agreed monthly salary
• Salary slips for at least the last 6 months, especially the months in dispute
• Bank statements showing the last credited salary and the gap since
• Any written acknowledgement of the delay — an email from HR, a WhatsApp message from your manager saying "salary will come next week", a company-wide notice
• Your employment contract if it specifies payment terms or notice obligations
• PF UAN statements — if the employer is not depositing PF either, that is a separate statutory violation and significantly strengthens your case

Save copies of everything outside company systems. Do not rely on your work email account, which you may lose access to if the situation escalates into a termination.

Escalate internally — in writing first

Send a formal email (not WhatsApp, not a verbal conversation) to your HR head and your reporting manager. Be specific: state the months and exact amounts unpaid, cite your appointment letter, and give a 7-day deadline for resolution or a written explanation. Copy your personal email so you retain the thread. This step is not optional — Labour Commissioners routinely ask whether internal escalation was attempted before accepting a complaint. It also creates the paper trail you will need.

At larger companies, if there is a grievance redressal mechanism or an ombudsman, use it. These exist precisely for this — and using them formally rather than informally matters for your record.

File a complaint with the Labour Commissioner

If internal escalation produces nothing within your stated deadline, file a complaint with the Deputy or Assistant Labour Commissioner in your district. The process is straightforward:

1. Visit the Labour Commissioner's office or use your state's online labour grievance portal (most states now have one — search for "[your state] labour department online complaint")
2. Submit Form P under the Payment of Wages Act, or the applicable complaint form for your state's Shops and Establishments Act
3. Attach your evidence file: appointment letter, salary slips, bank statements, and your internal escalation email
4. A conciliation meeting is typically scheduled within 30–60 days. Both sides attend; the Labour Inspector or Conciliation Officer tries to reach a settlement
5. If conciliation fails, the case moves to the Labour Court, where a formal award can be made in your favour

This route is free. You do not need a lawyer for the initial filing, though a labour law consultant can review your complaint before submission and attend the conciliation with you — which often produces faster results.

If you are a senior professional or manager

If you are classified as a manager or earn above the Payment of Wages Act threshold, you fall outside the "workman" definition and cannot use the Labour Commissioner route directly. Your options are different but still robust:

• Send a legal notice through a lawyer. A notice on letterhead citing breach of contract and demanding payment within 15 days is often enough to trigger immediate resolution — employers with any reputational concern move quickly at this stage.
• File a civil suit for recovery of dues in the appropriate civil court. This is slower (months to years) but creates genuine legal pressure, especially if the amounts are significant.
• File a complaint under Section 406 IPC (criminal breach of trust) if the employer is clearly misappropriating salary funds — for example, deducting PF from your salary but not depositing it. Talk to a lawyer before this step; it has a higher threshold but is a serious deterrent.
• Approach the EPFO separately if PF deductions were made but not deposited — this is a criminal offence under the EPF Act and the Employees' Provident Fund Organisation takes these complaints seriously.

Should you keep working while pursuing recovery?

If the delay is a first-time occurrence at a company you otherwise trust, continue working and pursue recovery simultaneously — resignation complicates the narrative without improving your legal position. If it is a pattern, or if the employer is clearly in serious financial distress, start a quiet job search immediately. Do not take on new projects, sign new commitments, or accept equity in lieu of salary without legal review.

If you resign, you do not forfeit your legal right to past wages. Unpaid salary remains owed regardless of how your employment ended. However, voluntary resignation without trying to recover dues first can sometimes complicate the employer's obligation to pay notice-period salary — speak to a labour law expert before resigning in this situation.