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himanshu arora (Technical Head)     01 June 2013

Non payment of salary

I am working with a company since feb 2013. I am not paid my salary for the month of april till date and salary for the month of May is also expected to be due. Owner is saying we are out of funds and promising (not in written) that some amount will be given in the month of June. Please tell me what to do? If I get a job oppertunity somewhere else, am I bound to serve the notice period? Or on this ground that I am not receiving my salary, can I stop giving my services to the company and immediately join other one? Please help


 4 Replies

Kumar Doab (FIN)     02 June 2013

In such a situation employee should shift from verbal mode to written mode and should supply all representations under proper acknowledgment.

If employer has stated that wages shall be paid on……………….then should be paid by ………..dated.

Non payment of earned wages is serious breach by employer.

Employee should declare the financial constraints being faced and that he is not able o bear the expenses of attending t o office.

Employee may not hesitate to declare the employer as unworthy of being employed with.

Employee may declare that in such a situation clauses on notice period/pay loose its sanctity and validity and employer on his own should waive off such clauses.

You may find another thread as useful.





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Adv k . mahesh (advocate)     04 June 2013

first take a assurance from your employer that they will pay in parts shortly and do not disclose about new job till the last miniute or you wil loose both the amount 

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himanshu arora (Technical Head)     05 June 2013

If in case I get an oppertunity in another organization and my current organization still not able to pay my full salary, is it necessary to serve the notice period? 

Kumar Doab (FIN)     05 June 2013

The response remains the same. Employee should represent in writing, and demand to waive off the notice period/pay in writing, citing the reason and declaring the employer as unworthy of being employed with, extract a written communication that notice period/pay is waived off.

The employer form his point of view would love to square off the dues with notice pay.

The non payment of earned wages is breach by employer. The employee may pull the employer before o/o Labor Commissioner, Inspector Under Shops and Establishments Act (applicable to all employees as per definition of employee in the Act), Inspector under Payment of Wages Act (applicable to all employees drawing wages up to Rs.18000/pm as per def. of wages in the Act)………………and extract a written communication that notice period/pay is waived off.


There are thread to suggest that employees have filed criminal complaints under Section 406, 420……….to drill sense into the heads, and that unpaid wages can be claimed as debt on employer.

A legal notice by lawyer/law firm, a notice by Trade union may also help.



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