How Can I Recover Unpaid Salary After Resignation Amid Financial Crisis?

I resigned from my job last year, i.e., May '13, due to non-payment and other reasons. After that, my salary was not released from the company; they cited a financial crisis as the reason. To date, I have not received my salary for the 4 months before my termination. The HR department confirmed the amount after settling my accounts but has not released the payment yet.

Guidance Needed for Retrieving Arrears

Please guide me on how to retrieve my arrears from the company. What is the procedure to claim with interest up to the current date? I am currently facing financial crises and have been unemployed since then.

Regards,
Manish Harit

First of all, you should simply write a letter to your erstwhile employer and ask for the settlement payment. Kindly send the letter through Speed-Post/Registered Post only. You can also approach the Labour Department for this settlement. However, after approaching the Labour Department, as you have mentioned that the company was in a financial crisis, it may be possible that they will settle this with a smaller amount. Therefore, it's better to first approach the company for settlement and send them a reminder for the same. Otherwise, the matter can be taken to the Labour Department.

The company HR has not confirmed the matter on record. They have not issued a termination letter in writing or a settlement letter; they have only confirmed verbally.

How can I proceed to the labor court?

Jurisdiction and Steps to Retrieve Dues

If you worked there as a supervisory cadre, then the labor court does not have jurisdiction to settle your case. Just send a Registered AD letter to the company asking them to clear your account to avoid legal complications. Keep the records with you and then send a notice through an advocate. I think they will clear your account if they are cooperative, as nowadays nobody wants litigation. It will cost them far more than your full and final amount.

Kindly send an email or claim letter via Speed Post and discuss with them. If they do not settle, then only go for litigation as a last step, as this, once initiated, has no expected closure time.

The Payment of Wages Act, 1936 very clearly stipulates that when the employment of any person is terminated, the wages earned by him shall be paid before the expiry of the second working day from the day on which his employment is terminated. In the case of resignation, a normal time of 3-4 days is considered sufficient. Your employer cannot hold your dues like this. The Act has prescribed penalties for offenses under Section 20 of the Act, which states that whoever is responsible for the payment of wages to an employed person and contravenes any of the provisions shall be punishable with a fine not less than two hundred rupees but which may extend to one thousand rupees.

I suggest you approach the concerned labor department officials, who have the authority to hear and decide the claims arising out of deductions from wages or delays in payment of wages.

Regards,
BS Kalsi
Member since Aug 2011