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    What If My Employer Denies To Pay Me The Salary As Mentioned in The Contract?

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    annette
    This document discusses options for employees if their employer denies paying their salary as outlined in their contract. It explains that the Payment of Wages Act protects lower-wage workers but other remedies are still available. The Act requires wages to be paid within 7-10 days of the payment period, which cannot exceed one month. For terminated employees, wages must be paid within 2 days. If the employer refuses to pay, the employee can approach the Labour Commissioner or file a case under the Industrial Dispute Act to recover wages owed. As a last resort, executives can file a civil court case, but other means should be tried first due to the slow process.

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    What If My Employer Denies To Pay Me The Salary As Mentioned in The Contract?

    Uploaded by

    annette
    24 views3 pages
    This document discusses options for employees if their employer denies paying their salary as outlined in their contract. It explains that the Payment of Wages Act protects lower-wage workers but other remedies are still available. The Act requires wages to be paid within 7-10 days of the payment period, which cannot exceed one month. For terminated employees, wages must be paid within 2 days. If the employer refuses to pay, the employee can approach the Labour Commissioner or file a case under the Industrial Dispute Act to recover wages owed. As a last resort, executives can file a civil court case, but other means should be tried first due to the slow process.

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    This document discusses options for employees if their employer denies paying their salary as outlined in their contract. It explains that the Payment of Wages Act protects lower-wage workers but other remedies are still available. The Act requires wages to be paid within 7-10 days of the payment period, which cannot exceed one month. For terminated employees, wages must be paid within 2 days. If the employer refuses to pay, the employee can approach the Labour Commissioner or file a case under the Industrial Dispute Act to recover wages owed. As a last resort, executives can file a civil court case, but other means should be tried first due to the slow process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    24 views3 pages

    What If My Employer Denies To Pay Me The Salary As Mentioned in The Contract?

    Uploaded by

    annette
    This document discusses options for employees if their employer denies paying their salary as outlined in their contract. It explains that the Payment of Wages Act protects lower-wage workers but other remedies are still available. The Act requires wages to be paid within 7-10 days of the payment period, which cannot exceed one month. For terminated employees, wages must be paid within 2 days. If the employer refuses to pay, the employee can approach the Labour Commissioner or file a case under the Industrial Dispute Act to recover wages owed. As a last resort, executives can file a civil court case, but other means should be tried first due to the slow process.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    WHAT IF MY EMPLOYER DENIES TO PAY ME THE SALARY AS MENTIONED IN THE

    CONTRACT?
    It is quite common in India for employers to deny salary to employees, especially at the time
    of firing them. They think that employees have no options or the resources to pursue a case
    against an employer. In reality, there are several things an employee can do that can land an
    employer in real trouble. However, the knowledge regarding the same is not available in
    public domain and lawyer’s advice come costly.  
    There are several legal process that can be followed by an employee to recover salary or
    wages. The first step that we recommend is sending a good notice from a credible lawyer
    who has a track record of doing such matters. However, before we tell you more about that,
    let us get you introduced to some basic concepts in Indian labour laws that deal with the
    issues of non-payment of wages or salary.
    India has an entire law on payment of salary called Payment of Wages Act, though it does
    not apply to all levels of employees. It usually applies to low-wage blue caller workers.
    Effective September 11, 2012, the wage ceiling under the Payment of Wages Act, 1936 was
    increased to an average wage ceiling of INR 18,000 per month pursuant to a notification by
    the Indian Government. If you are not covered under this act, other remedies are still
    available.
     
    Let’s see what the Payment of Wages Act has to say in this matter.

     Section 4 of the payment of wages Act states – 


    Fixation of wage period every person responsible for the payment of wages under Section 3
    shall fix periods in respect of which such wages shall be payable. No wage period shall
    exceed one month.

    Monthly Salary Distribution Requirements:


     A person is working in an establishment with a wage not more than one thousand, the
    wage to the particular person shall be paid before the expiry of the seventh day.
     A person with the wage of more than one thousand shall be paid before the expiry of
    the tenth day.
     If the employee is terminated by the employer the wages earned by him shall be paid
    before the expiry of the second working day from the day his employment is terminated.
    WHAT STEPS CAN BE TAKEN BY EMPLOYEE:

    If your employer is not paying your salary, you can get these remedies.
    1. Approach Labour Commissioner- If an employer doesn’t pay up your salary, you can
    approach the labour commissioner. They will help you to reconcile this matter and if
    no solution is reached labour commissioner will hand over this matter to the court
    whereby a case against your employer may be pursued.
    2. Industrial Dispute Act:

     An employee can file a suit under Section 33(c) of Industrial Dispute Act, 1947
    recovery of money due from an employer.
     When the salary is due from the employer, the employee himself or any other
    person authorized by him in writing on his behalf can claim recover money.
     In case of the employee death, the authorized person or heirs make an
    application to the labour court for recovery of money due.
     The court will further issue a certificate on being satisfied that the salary is due
    and the collector shall proceed to recover the same.
     If any question arises as to the amount of money due or as to the amount at
    which such benefit should be computed, it would be computed according to rules
    under this Act.

    Labour Court Time Line:


    Cases have to be decided by such labour court within period not exceeding Three
    Months provided that where the presiding officer of a labour court considers it necessary or
    expedient so to do, he may for reasons to be recorded in writing, extend such period by
    such further period as may he think fit.

    What about executives, managers and those who earn above INR 18,000 a month?
    If you are manager or executive level employee, you can file a case against the company in
    the civil court under order 37 of Court of civil procedure. This is faster than the usual slow
    procedure in civil courts, called a summary suit. It is quite effective, but should not be
    pursued as a first resort. There are easier things at your disposal as well. Out of 100 cases,
    maybe 5-7 requires such effort. However, many lawyers are quick to jump to this. Before
    opting for this, ask your lawyer to exhaust other means.

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