Stuck Without Salary: How to Handle Payment Delays as a Contract Employee?

Salary Payment Issue with Contract Employment

I was trying to get some help in my case and then came across this forum, and it's a great platform for HR/Management/Employee/Employer.

Following is my scenario:

I got a job from a resource outsourcing organization, let's call it ABC Consulting - A. I was required to work at an Indian MNC - one of the Top 3 IT companies - M. I joined and started working as a contract employee at M. After working for 1.5 months, I got a permanent job at another MNC. Since I was a contract employee at M, I decided to join the permanent position and resigned at A, keeping managers at M in the loop. I clearly mentioned that this email should be considered as the start of my notice period of 30 days.

A asked me to submit all the timesheets and complete the formalities. I completed the formalities and surprisingly got released in 3 days, although I was ready to serve the notice period.

Please note that I wasn't paid a salary in the first month due to the Manager at M being on leave.

Since then, I have been following up with A for my salary, but they - A kept on telling me to get my timesheets approved. I tried contacting M, but they asked me to contact my employer A.

I have asked "A" multiple times through emails and calls, but they kept on saying that my timesheets are not getting approved by M and hence withholding my salary and notice period payout.

It's been more than 4 months, and still, I did not get any positive response. I request the forum members to suggest what I should do now.

Let me know if there are any open queries that I might have missed. Your help is needed, please.

Thanks,

Shankar

Legal Steps for Unpaid Salary

Since you have not received one month's salary despite giving them notices (in emails, which I assume are official emails), you now have two options. You can either send a legal notice through a lawyer, which may prompt them to clear the dues immediately to avoid further hassle, or you can approach the appropriate legal forum. Depending on the nature of your employment, the nature of your company, the number of employees, your salary, etc., the appropriate forum can be determined. It is advisable to consult a lawyer for this purpose. Please be aware that engaging in a legal battle is time-consuming and expensive. Therefore, you should carefully consider whether it is worth pursuing legal action for just one month's salary.

Hi Ritesh,

I understand that it's for 1 month. Can there be an effective way to get the salary and FnF? Would it be fine if at least a legal notice is sent from the Labor Court? It may make them feel the pinch, or something like warning them of spreading this thing on social media.

I have all the relevant documents such as the Offer letter, Deputation letter, Resignation emails, Release email, and Timesheets.

Regards,
Shankar

Legal Notice and Court Summons

The court cannot send any legal notice. The court can only send a summons to the company, asking them to appear before the court and defend themselves. Before approaching the court, it is always advisable to give a legal notice to the company stating your grievances and seeking relief. This legal notice is given by a lawyer, not the court.

Salary Recovery Under Labor Laws

Even under labor laws, salary can be recovered under different Acts. Please note that different forums are there for different Acts, although all these Acts fall under labor laws. Therefore, it is essential to have all details related to your employment.

Regards, Shankar

First, send a notice/legal notice demanding the outstanding salary immediately via speed/registered post before resorting to court action.