Rtn. Adv. Sonia
Unpaid Salary and Employee Fired from Job : Legal Advice

Unpaid Salary and Employee Fired from Job : Legal Advice

If an employee's salary is not paid by their employer, they may initiate several legal actions to seek resolution and recover the unpaid wages. The specific legal actions available to an employee will depend on the labour laws and regulations in their country or jurisdiction. Below are some common legal actions that employees can consider:


·       Labor Department Complaint: The employee can file a complaint with the labor department or labour board in their region. These government agencies are responsible for enforcing labour laws and ensuring that employees are treated fairly. The labour department may investigate the claim and attempt to resolve the issue through mediation or other means.


·       Demand Letter: The employee can send a formal demand letter to the employer requesting payment of the unpaid wages. The letter should clearly state the amount owed, the period for which the salary is due, and a deadline for payment. This letter can serve as documentation of the employee's efforts to resolve the matter before pursuing legal action.


·       Initiate Insolvency Proceedings: It's important to note that initiating insolvency proceedings under the IBC (Insolvency and Bankruptcy Code), This allows the employee to claim unpaid salary as part of the insolvency resolution process. This is typically done against corporate entities, not individual employers. If an employee's salary is not paid by an individual employer, they may need to pursue other legal avenues, such as filing a civil suit for recovery of unpaid wages or seeking assistance from labour authorities or forums as per the applicable labour laws in India.

In Sanjay Sadanand Varrier v M/s Power Horse India Pvt Ltd, a larger bench of Bombay High Court held that

“an employee can maintain a petition for winding up of a company as a creditor based on a claim of the recovery of unpaid employment dues”


·       Civil Lawsuit (Recovery of Money): If the employer continues to refuse payment, the employee may consider filing a civil lawsuit in a court of law. The lawsuit would seek the recovery of the unpaid wages, and possibly other damages if allowed under the law.


·       Small Claims Court: In some jurisdictions, there are small claims courts that handle disputes involving relatively small amounts of money. Employees may choose to pursue their claim through small claims court, which is designed to be less formal and allows individuals to represent themselves without a lawyer.


·       Labor Tribunal or Commission: In certain countries, there are specialized labor tribunals or commissions that handle employment-related disputes. Employees can lodge a complaint with these bodies, and they will conduct hearings and make decisions based on the evidence presented.


·       Union Representation: If the employee is a member of a labour union, they can seek assistance and representation from the union in resolving the salary dispute. Unions often have experience in dealing with such issues and can negotiate on behalf of the employee.


·       Wage Claim Agency: Some regions have dedicated wage claim agencies that handle unpaid wage disputes. Employees can file a claim with these agencies, and they will investigate the matter and take appropriate actions to recover the unpaid wages.


It's crucial for the employee to keep detailed records of their employment, such as pay stubs, timecards, and any communications with the employer regarding the unpaid wages. Consulting with an employment lawyer can also be beneficial to understand the specific legal options available and to navigate the process effectively. Additionally, employees should be mindful of any deadlines or statute of limitations for filing claims related to unpaid wages in their jurisdiction.

Feel free to write to us at mail@lawyersonia.com or call +91 9845944896 if you wish to consult or discuss your matter. “Sonia and Partners” is a Boutique law firm led by Adv. Sonia Rajesh supported by a team of qualified and among the Best Lawyers in Bangalore practicing in the area of Civil Laws, Commercial Laws and Criminal defense serving Citizens of India, Overseas Indians, NRIs and Global International Clients.


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