Facing Unpaid Salaries in a Startup: What Legal Steps Can I Take to Get My Due?

Dear Seniors, I am working with an IT firm that started 2 years ago. It has been 5 months now, and the CEO has not been paying us our salary. Whenever we ask, they mention performance issues or give a reason that the client has not paid us.

I am planning to leave the company. Please let me know what legal actions can be taken against such a company so that I can get my salary back.

Please suggest.

Regards, Riya

Talk to the CEO about your financial crisis. If the CEO does not heed your request, approach the Labor Commissioner with a written complaint.

Thank you.

Thank you, sir. But will it be okay if I complain after my resignation? What documents and proof do I need to provide? I have spoken with him many times, but it has been of no use.

Regards

Consult an Advocate for Legal Advice

It is best to consult an advocate in this matter. Your appointment letter needs to be seen. Based on your appointment letter and the nature of work performed by you, it will have to be decided whether you fall into the category of a workman or not.

If your status is a workman as per the Industrial Disputes Act, then only you can approach the Deputy Commissioner of Labour. Otherwise, you will have to go to civil court in a recovery suit.

Please ensure that before leaving the company, you write a detailed letter to the employer demanding the said money and stating that you have not been paid the salary for the last 5 months. Mention that you reserve the legal right to initiate appropriate legal action to recover the money. If you do not demand in writing, no legal action in the future is available.

Proof of Employment

Copy of the appointment letter, relieving letter, or any other proof of having worked there, along with email correspondences, if any.

Pon

Thanks, Mr. Manish,

Proving Workman Status

What are the things or terms that prove you are a workman of the company, especially since they don't pay PF to any employee? We have a muster register where we sign every day, an appointment letter, and a salary account. Will this be enough to prove that I am an employee of this company? Furthermore, how will I prove that they are not paying me or other employees too?

Regards