Facing Salary Delays Due to Client Payment Issues: Is It Legal and What Can I Do?

I am working as a Marketing Manager in a steel structures and components manufacturing company. Three months ago, our company executed a project in our city. After the completion of the project, the client is delaying the balance payment of Rs 300,000 (Three Lacs). Every time I go to him to ask for the balance payment, he tells me to come next week. This has been going on for the last two months. Due to the non-receipt of this payment, my employer has withheld my salary for January and February. I am still working in the company but cannot find any way to get the balance payment promptly or to receive my salary.

Legal Concerns Regarding Withheld Salary

Is it legal for my employer to withhold my salary if the company's balance payment is not received or is delayed by the client? I am unsure of what to do without my salary for the past two months. How can I obtain my salary in this situation? Please guide me on how to navigate this challenging situation.

Salary Withholding Practices in Companies

This has been the practice in some companies to withhold marketing people's salaries for not collecting payments from customers. However, employees will not stay in those companies. They should at least be paid Basic + DA to cover their monthly regular expenses. Some companies will withhold variable performance pay, bonuses, and other benefits.

According to the Payment of Wages Act, you are entitled to receive a salary for the days you have worked. You can file a complaint with your regional labor commissioner, although it may strain your relationship with your company. It is better to discuss with them to release at least half of your salary for your daily needs. If you decide to leave the company, you can raise a dispute with the labor officer.

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