Non payment of salary

I am presently employed with a limited company (Listed in BSE, prominant in Design, Engineering & project execution), i am associated with this org as GM since last 3 years.

Presently salaries of all employees are due for 7 Months for GM and above

The company says that their financial status is bad and they are unable to pay us.

What are the options left with the employees & what course the company is likely to take in future ( The company has debts of approx 6000 cr and yet to file CDR/Bankruptcy.

Meanwhile the founder is making good his alternate business where he is investing money.

Help me to settle my dues which is my life since i am likely to retire.

Dy Director

approach Labour Comissioner



>> Employees can drag their employer to court the minute their salary is delayed, even by a day.

However writing to the company first giving details of the amount due and giving the employer time to respond before going to court, makes sense.  

This document with POD can become a record of ‘Determined Debt.’


Attempt and ensure that you get assurance (liability to pay) in writing that wages shall be paid.

It is a private employer and unpaid wages can be claimed as debt on employer.

If the company does not respond employee can take the employer to court.

The mechanism for non payment of salary to employees does exit be it ‘Workman’ ‘Employee’ ‘Executive’ ‘Manager’ but the redressal system is slow and litigations can be long drawn.

Therefore the employee should not give a very long rope to employer.

The Directors promoters and owners shall find legal escape routes so that they themselves are not convicted and put behind bars. 

You may go thru the observations of learned Delhi Court in case of

Delhi High Court

Argha Sen vs Interra Information ... on 12 September, 2005


The employee was a AVP like you.


>> Being AVP you may not be covered as “Workman’ as in ID Act, ‘Employee’ as in Shops and Commercial Establishments Act and able to approach:

----O/o Labor Commissioner

--- Inspector Under Payment of Wages Act (applicable to all employees drawing wages as per def. of wages in the Act up to Rs.18000/pm)

 ----Inspector under Shops and Commercial Establishments Act

You may approach your lawyer and your lawyer may advice to approach civil court for recovery of unpaid dues.

If the establishment files for closure and liquidation then you may be in Q…………………

There are threads indicating that employees contemplate to file criminal complaints u/s 406,420………..

There are threads indicating that employees approach employer as creditors treating unpaid wages as Debt……………………….

You may go thru;

However you may be last in the long…………….very long Q……………………………as explained in below mentioned thread.

>> Some employees achieve some kind of handle on employer by virtue of their position, proximity to certain sensitive matters, approach , influential personalities in society/community…………………….etc

If you have some kinds of handle press that to get your dues.

Prepare a list of assets of corporate and promoters which may come handy to get the dues.

>> After analyzing your inputs your lawyer may opine that the loss is due to breach of fiduciary duties by Directors and loss can be  directly attributed to their actions or omissions and/or their conduct itself is tortuous due to negligent mismanagement attributed to carelessness in the oversight of some aspect of the corporation's operations and board knew of, or ought to have foreseen, a systemic problem and failed to address it.


>> The employer is unworthy of being employed with.

Firm up your next venture as ap.

Approach a good lawyer as ap.    

Explore all possibilities.      

Your lawyer may opine that you may have file your petition as ap or it may be time barred.

Valuable advice of learned experts/members is sought.

Attached File : 264855828 unpaid wages of avp.doc downloaded 53 times

Dear Kumar,

I have seen your reply and I absolutely agree with your comments. Being Executive of Private employer, he is not workman under Industrial Disputes Act (If nature of his job is not as defined in Section 2(s) of the IDAct). In these event, he has only remedy to seek redressal in Civil Court by filing suit of recovery of money.

Adv P & H High Court Chandigarh

I do agree with the advice of Kar and add that the employees can also approach to the high court and can file company petition.


Dear All Thanks for the suggestions

I would like to get advise on the following

1. Should i resign or wait until company files bankruptcy / Liquidates?

2. Should i take legal course individually or should i gather and make group (all employees are (affected)

3. company may not provide releiving letter/acknowledge any letters. Pl advise


Dear Kumar

My aforesaid advice is based on you e-mail sent to me. I had not seen the query. Thus I want to say from the query, it is evident that the matter involve to non payment of salary of entire establishment. Thus they can seek remedy under the Industrial disputes Act being collective dispute. The Labour Department is under obligation to enforce their statutory right under the. In this circumstances, the employees either collectively or through their union  should  approach Labour  Department. In case, Labour Department does nothing to file writ of mandamus against the Labour department to exercise its jurisdiction in enforcing rights of employee. The Labour Department can attach the property of the employer for non payment of salary under the provisions of Payment of wages Act.



Learned Mr. Tripathi, Mr. Makkad,






Kindly accept my heartfelt thanks for the valuable advice.


These experts are thorough gentlemen and have helped many with their valuable advice.


It is also advised by experts to me that:


The concerned executive can file civil suit for recovery.

If the employer is partnership firm all partners may be made opponents.

In other cases company and the person responsible for payment be made party. The prayer may be made to court to restrain the opponents from disposing off the assets by interim order. Before filing suit notice may be issued through advocate. That may save further expenses.”



@ Santosh Kumar


You may approach your lawyer as ap.




This is a clear violation by the employer of the Shops and Establishments Act/Payment of Wages Act (non payment of wages/salaries) and also EPF ACT (unless the salary is paid, the PF of employer and employee could not have been remitted) and hence the employee (including Managers) can file a complaint before the Labour Inspector under the S&E Act and the authorities are bound initiate criminal prosecution against the employer/Board of Directors. 





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