Salary not Paid by your Company or Employer in India - WHAT TO DO?

Do not immediately rush to the "Samadhan" Central Portal unless you work for a PSU, Bank, or Railway. For 90% of private employees (IT, Startups, Factories), you must file with your State Labour Commissioner (e.g., e-Labour Punjab, Mahakamgar). You must first send a formal "Demand Notice" to your employer. If they don't pay within 15 days, file a complaint under the Payment of Wages Act or Code on Wages, 2019.

Most employees Google "Labour Court Complaint" and land on the Samadhan Portal (Central Government). They file a case there, wait 3 months, and then get rejected because the Central Government has no jurisdiction over private software companies or local shops. In India, labour is a "Concurrent List" subject, but enforcement is strictly divided between Central Sphere (Mines, Oil, Banks) and State Sphere (Everything else).

Checklist

• A copy of your Employment Contract / Appointment Letter.
• Bank Statement for the last 6 months (Showing salary credited previously, then stopping).
• A copy of the Legal Notice (Demand Letter) sent to the company.
• The Hidden Requirement: Proof of "Workman" Status. If your designation is "Manager" but you do zero managerial work (no power to hire/fire), you are still a "Workman" under law. You need a job description document to prove this, otherwise, the Labour Court will dismiss you to Civil Court.

Step-by-Step Guide

• Step 1: The "Demand Notice" (Mandatory)
  Before the government intervenes, you must prove you tried to ask for the money.
  Send a Registered Post (RPAD) or formal email to HR/Directors.
  Subject: Demand Notice for Payment of Outstanding Wages.
  Content: "You have failed to pay salary for [Month]. Please clear dues within 15 days, failing which I will initiate legal action under the Code on Wages, 2019."
• Step 2: The "Jurisdiction Test"
  Central Sphere (File on Samadhan): Railways, Mines, Oil Fields, Major Ports, Banks, Insurance (PSU), Air India.
  State Sphere (File on State Portal): IT Companies, Startups, Manufacturing Factories, Shops, Private Hospitals, Schools.
  Most users reading this fall under State Sphere.
• Step 3: Filing the Complaint (Online)
  For Central Sphere: Go to samadhan.labour.gov.in. Register > "Raise Industrial Dispute."
  For State Sphere: Search "[State Name] Labour Department Complaint." (e.g., "Swayam" for Gujarat, "e-Karmika" for Karnataka).
  Select "Under Payment of Wages Act" or "Industrial Disputes Act" (Section 2A - Individual Dispute).

• Step 4: The Conciliation Hearing
  Once filed, a "Labour Inspector" will summon both you and the HR.
  This is not a court judgment; it is a mediation.
  Outcome: The Officer pressures the company to pay. If the company refuses, the Officer issues a "Failure Report" (Section 22), allowing you to move to the formal Labour Court.

How It Works & Hidden Details

The "Code on Wages" Logic:
Under the Code on Wages, 2019 (fully active in 2026 context), the distinction between "Scheduled Employment" is removed. All employees are entitled to timely wages. The law empowers the "Inspector-cum-Facilitator" to directly order the company to pay up to 10 times the claim amount as a penalty.

The "Manager" Trap:
Section 2(s) of the Industrial Disputes Act defines a "Workman." It explicitly excludes anyone employed in a managerial or administrative capacity.
If you earn a high salary (e.g., ₹30 LPA) and have a title like "Vice President," the Labour Commissioner may refuse to hear you. In this case, your only option is a Summary Suit in Civil Court or filing for Insolvency (NCLT) if the unpaid amount exceeds ₹1 Crore (as a creditor).

Things to Watch Out For

• Risk 1: The Time Bar.
  You must file the claim within 3 years of the salary becoming due. After that, the claim is "time-barred" by the Limitation Act.
• Risk 2: "Full and Final" Settlement.
  Do not sign any exit document that says "I have received all dues" just to get your experience letter. If you sign that, your legal claim is dead instantly.

Frequently Asked Questions

• Q: Can I file if I have already resigned?
  A: Yes. Section 2A of the ID Act specifically allows "dismissed, discharged, or retrenched" individual employees to file a dispute directly.
• Q: My company is a startup and is shutting down. What do I do?
  A: If they are bankrupt, Labour Court cannot help much. You must file a claim with the Official Liquidator if they go into Insolvency. Employees have "Priority" over other debts under the Companies Act.

Update: Critical Additions & Recent Changes

• Manager vs. Worker (The ₹18,000 Ceiling):
  Under the Industrial Relations Code, 2020 (Effective Nov 21, 2025), the definition of "Worker" excludes anyone employed in a supervisory capacity drawing wages exceeding ₹18,000 per month. This is a very low bar. If you earn ₹25,000 and have even one junior reporting to you, the company can successfully argue you are "Management" and get your case dismissed from the Labour Court.
• Virtual Conciliation (Standard Procedure):
  Post-2025, most State Labour Departments (especially Karnataka, Maharashtra, and Haryana) have shifted to Online Conciliation via Video Conferencing for the first hearing. You do not need to physically visit the Labour Commissioner's office. Ensure your email and phone number on the complaint portal are active to receive the Webex/Zoom link.

Code on Wages, 2019 (fully active in 2026 context)

The Code on Wages (along with the other 3 Codes) was officially notified for implementation on November 21, 2025. However, strict enforcement is currently in a "Transition Phase" as State Rules are still being gazetted in some regions.