Salary Not Received? Know Your Legal Rights & Steps

Introduction

A salary is the fundamental right of every employee. It is the reward for the hard work and dedication put into the job. However, in some cases, employers refuse to pay salaries, delay payments, or withhold them without valid reasons. If you are facing such a situation, knowing what to do if company is not giving salary is crucial for safeguarding your financial and legal rights.

Importance of Timely Salary Payments

Receiving a salary on time is essential for employees to manage their daily expenses, pay bills, and meet financial obligations. A delay in salary can cause:

Financial instability: Employees may struggle to meet their rent, loan, or daily expenses.
Reduced motivation: If salaries are delayed, employees may feel undervalued, affecting productivity.
Legal violations: Companies withholding salaries violate labor laws, and employees have the right to take action.

Common Reasons Why Companies Delay Salaries

Some of the most common reasons include:

Financial crisis: The company may face losses or cash flow issues, leading to payment delays.
Internal disputes: Conflicts between management and employees may result in withheld salaries.
Fraudulent practices: Some unethical employers deliberately delay or refuse payments.

Overview of Employee Legal Rights

Employees are protected under various labor laws that ensure timely salary payments. These laws provide remedies such as filing a complaint against company for not giving salary in India, approaching the labor commissioner, and taking legal action.

Understanding the Legal Framework for Salary Issues in India

Employees in India have strong legal backing to protect their salaries. If salary not received, there are legal ways to address the issue.

Labour Laws and Salary Protection

India has multiple labor laws that protect employees from wage exploitation. If an employer refuses to pay, you can take legal action under:

The Payment of Wages Act, 1936
The Minimum Wages Act, 1948
The Industrial Disputes Act, 1947
The Contract Labour Act, 1970

What Does “Salary No Bar” Mean?

The phrase “salary no bar” meaning often appears in job postings. It means salary is not a limiting factor for the right candidate, and the company is willing to negotiate higher pay. However, this does not mean that an employer can delay or refuse salary payments.

The Payment of Wages Act, 1936

This act ensures that employees receive their wages on time. It specifies:

Salaries must be paid within seven days of the wage period ending.
Employers cannot unfairly deduct wages.

The Minimum Wages Act, 1948

This act ensures employees get at least the government-mandated minimum wage for their work.

Reasons Why Companies Refuse to Pay Salary

1. Financial Crisis in the Company

Companies struggling with losses may delay salaries, citing financial instability. However, this does not exempt them from their legal responsibility.

2. Disputes Between Employer and Employee

Employers may withhold salary due to conflicts over performance, resignations, or company policy violations.

3. Misuse of Probation or Termination Policies

Many companies exploit probation periods to deny salaries, stating that the employee was terminated before confirmation.

4. Unethical Business Practices

Some companies refuse to pay salaries as part of fraudulent activities, knowing employees may not take legal action.

Step-by-Step Guide: What to Do If Company Is Not Giving Salary?

Step 1: Check Your Employment Contract

Review your contract for salary clauses, payment dates, and legal obligations.

Step 2: Communicate with HR and Management

Send a professional email requesting salary payment, keeping records for legal purposes.

Step 3: Send a Formal Written Complaint

If informal communication fails, draft a salary not received complaint and submit it to HR.

Step 4: File a Legal Complaint Against Company for Not Giving Salary in India

If salary remains unpaid, approach the labour commissioner or file a complaint with a labor court.

How to Write a Complaint Against Company for Not Giving Salary in India?

A formal complaint should include:

Employee details (name, designation, company name)
Salary details (pending amount, period of non-payment)
Attempts made to resolve the issue
Request for immediate payment

Sample Email Template

Subject: Urgent: Salary Not Received for [Month]

Dear [HR Manager’s Name],

I am writing to formally request my pending salary for [Month(s)], which has not been credited to my account despite my regular follow-ups.

As per my employment contract, my salary was due on [date]. However, I have not received it yet. I kindly request you to process my payment at the earliest.

Looking forward to a prompt resolution.

Sincerely,
[Your Name]

Sample Letter to Labour Commissioner for Non-Payment of Salary

[Your Name]
[Your Address]
[City, Pin Code]
[Date]

To,
The Labour Commissioner,
[City/State Office]

Subject: Complaint Against [Company Name] for Non-Payment of Salary

Respected Sir/Madam,

I am writing to formally lodge a complaint against [Company Name], which has failed to pay my salary for [Month(s)] despite repeated requests.

I request your immediate intervention to resolve this matter.

Sincerely,
[Your Name]

How to File a Complaint to Labour Commissioner?

When Should You Approach the Labour Commissioner?

If salary is delayed for more than one month
If multiple employees face the same issue

Where to Submit the Complaint?

You can submit the letter to labour commissioner for non-payment of salary at the Labour Commissioner’s Office in your state.

Legal Actions and Employee Rights If Employer Is Not Giving Salary

How to Approach a Labour Court

Collect evidence (emails, salary slips, offer letter).
File a case under the Payment of Wages Act, 1936.

Role of Trade Unions in Salary Disputes

Trade unions help negotiate with companies and file complaints on behalf of employees.

Legal Timeline for Salary Disputes

Companies must clear salaries within 7-15 days of a formal complaint.
Employees can seek compensation for delays.

Alternative Solutions: What If the Legal Route Fails?

Mediation and Negotiation Strategies

If legal action is too lengthy, consider negotiating with management.

Approaching Higher Authorities

Escalate the complaint to Labour Department officials.

Seeking Alternative Employment While Resolving the Issue

If salary delays persist, look for a new job while pursuing legal action.

Work for Which No Salary Is Paid: Understanding Unpaid Work Policies

When Is Unpaid Work Legal?

Internships (when clearly defined as unpaid learning experiences).
Volunteering (for non-profit organizations).

Internships vs. Exploitation

If an internship involves work similar to regular employees, it should be paid.

Legal Protections for Unpaid Workers

Workers performing essential tasks must be compensated under labor laws.

Conclusion and Final Thoughts

If your salary is not received, take immediate action to resolve the issue. Employees must be aware of their legal rights and take necessary steps such as: