My employer doesn't pay my salary - what can I do?

Yes. Withholding salary that is earned and due is a statutory wrong under the Payment of Wages Act, 1936 and the newer Code on Wages, 2019. Both impose:

(1) Time limits — wages must be paid before the 7th of the next month (small establishments) or 10th (large establishments);
(2) Permitted deductions only — fines, advances, statutory deductions like PF/ESI are allowed; arbitrary deductions are not;
(3) Penalty — employer can be fined ₹50,000 (first offence) or ₹1 lakh (repeat offence) per Code on Wages.

For salaried employees not covered by the Wages Act (e.g., higher earners), the obligation flows from the employment contract under the Indian Contract Act, 1872 — non-payment is breach of contract.

The right forum depends on your salary band and the employer's status:

(1) For employees earning up to ₹24,000/month (or whatever the prevailing Wages Act ceiling is) — file under Section 15 of the Payment of Wages Act, 1936 before the Labour Commissioner. Summary procedure; decided in months.

(2) For 'workmen' under the Industrial Disputes Act, 1947 — raise a dispute under Section 2A directly with the Labour Court.

(3) For all employees — file a civil suit for recovery. A Summary Suit under Order 37 CPC works if the obligation is in writing.

(4) For corporate employers owing more than ₹1 crore in operational debt — file under Section 9 of the IBC, 2016 before the NCLT. Employees are 'operational creditors'.

Step 1 — Send a written demand to the employer for the unpaid amount. Send by email and registered post; keep proof.

Step 2 — File an application under Section 15 with the Authority appointed under the Act (usually the Assistant Labour Commissioner) within 12 months of the wages becoming due.

Step 3 — Pay nominal court fee (₹100-₹500 depending on state).

Step 4 — Hearing. The Authority issues notice to the employer. Both sides present evidence. Most cases are decided in 4-9 months.

Step 5 — Order. The Authority can direct payment of the unpaid wages PLUS compensation of up to 10 times the deducted amount, plus interest at 12%.

Step 6 — Recovery. If the employer doesn't pay, the order is enforceable as a decree — bank account attachment and property auction follow.

Engage a reputable, specialised employment lawyer for substantial claims, though representation is not mandatory.

Yes — and it's often the fastest leverage against a struggling corporate employer. Under the Insolvency and Bankruptcy Code, 2016:

(1) Employees are 'operational creditors' under Section 5(20);
(2) For dues totalling more than ₹1 crore (the threshold raised in 2020), you can file a Section 9 application before the NCLT;
(3) Procedure: Issue a demand notice in Form 3, wait 10 days, then file the Section 9 application in Form 5 with the unpaid invoice/payslip evidence;
(4) Effect: If the company can't dispute the debt or pay, the NCLT admits the case and a moratorium kicks in, freezing other proceedings. The company usually settles quickly to avoid Corporate Insolvency Resolution Process.

For amounts below ₹1 crore, the Labour Court / Civil Court is the appropriate forum. For very large dues, the IBC route is uniquely effective leverage.

Unpaid salary is the most visible component of employer non-payment, but three additional statutory entitlements are frequently withheld and are independently recoverable:

Gratuity (Payment of Gratuity Act, 1972): Payable if you have completed 5 years of continuous service with the same employer. Formula: (Last drawn basic + DA) × 15/26 × number of completed years of service. Payable within 30 days of the last working day. Non-payment attracts simple interest at 10% per annum from the due date. The employer must notify you of the gratuity amount within 30 days; if they do not, file Form I (application by employee) before the Controlling Authority (Assistant Labour Commissioner). The Controlling Authority can issue an order enforceable as a revenue recovery.

Annual / performance bonus (Payment of Bonus Act, 1965): Employees earning up to ₹21,000/month and having worked for at least 30 working days in the accounting year are entitled to a minimum statutory bonus of 8.33% of annual wages (or ₹100, whichever is higher), payable within 8 months of the close of the accounting year. If the employer withholds bonus, file a complaint with the Labour Commissioner. The claim period is 3 years from when the bonus became due.

Leave encashment: Earned/privilege leave that is accrued but unused at the time of separation is payable as leave encashment under the applicable Shops and Establishments Act (state-specific), Factories Act, or employment contract. This is a contractual right enforceable through the Labour Court or civil suit. Most state Shops Acts specify that leave encashment must be paid within the FNF settlement period.

One of the most common and underreported forms of employer non-payment is deducting PF and ESIC contributions from the employee's salary but failing to deposit them with the respective authorities. This is both a civil and criminal offence.

How to check if your PF has been deposited: Log into the EPFO member portal (epfindia.gov.in) with your UAN (Universal Account Number). Go to Passbook — each month's employer and employee contribution should appear. If contributions are missing, the employer has deducted your share but not remitted it.

Your remedies:

• File a grievance at EPFiGMS (epfigms.gov.in) — EPFO enforcement officers can audit the employer and recover outstanding contributions plus interest and penalty.
• File a complaint under Section 14 of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 — non-deposit is a cognisable criminal offence punishable with up to 3 years' imprisonment and fine.
• The EPFO can attach the employer's bank account and property for recovery.

ESIC: Check your ESIC passbook at esic.gov.in using your Insurance Number. Non-deposit of ESIC contributions is an offence under Section 85 of the Employees' State Insurance Act, 1948 — also cognisable, with up to 2 years' imprisonment.

Why this matters at exit: Even if the employer issues a relieving letter and pays salary, accumulated PF of 2–3 years not deposited is a significant financial loss. Always check the EPFO passbook before your last working day and raise a grievance before leaving if any months are missing.

Recovering dues from a company that has shut down, abandoned operations, or is in insolvency requires a different approach from the standard labour law route.

Workmen as priority creditors under IBC: Under Section 53 of the Insolvency and Bankruptcy Code, 2016, the liquidation waterfall gives workmen's dues (wages for 24 months preceding the insolvency commencement date) second priority — immediately after the insolvency resolution costs and ahead of secured creditors. This means workmen have strong protection in liquidation scenarios.

Filing a claim in CIRP / liquidation: If the company is in Corporate Insolvency Resolution Process (CIRP) or liquidation before the NCLT:

• File Form B (operational creditor claim) with the Resolution Professional or Liquidator within the claim submission deadline (typically 90 days from CIRP commencement).
• Attach: appointment letter, salary slips for the unpaid period, bank statements showing last payment, PF records, and a certificate of service from HR if available.
• Employee claims of up to 24 months' wages are treated as high-priority operational debts.

For companies that have simply shut down without formal insolvency: The company's assets can still be attached through a Labour Court decree or civil court decree. Trace the company's registered office address, directors' details (from MCA21 portal at mca.gov.in), and any immovable property in the company's name through an ROC search. File an execution petition against those assets.

PF as a guaranteed backstop: Even if the employer cannot pay, EPFO is required to credit the employee's UAN with contributions already deducted. File an EPFO grievance even against a closed employer — EPFO can recover from the employer's statutory liability, and PF accrued (even if not deposited) may still be available if the employer made actuarial provisions.

Yes, always. A formal legal notice often resolves the dispute without litigation, and creates a documentary record for any subsequent forum. Key elements of a good demand notice:

(1) Itemised amounts due — month-wise basic, allowances, bonus, leave encashment, gratuity if applicable;
(2) Reference to the contract — appointment letter, salary structure;
(3) Specific statutory provisions — Payment of Wages Act, Code on Wages, IBC threshold (if applicable);
(4) Time-bound demand — typically 15-30 days;
(5) Consequences of non-compliance — labour court complaint, IBC petition, civil suit;
(6) Sent by registered post AND email for proof of service.

Engage a reputable, specialised employment/labour lawyer to draft. Many will issue the notice on a fixed fee (₹3,000-₹15,000). See our companion guide on employer refusing resignation.