Struggling with Unpaid Wages After Resignation: How Can I Resolve This Issue?

Hi, I joined a Mumbai company in May 2016. The employer/director/my reporting manager always scolds me about my work. She always uses nonsensical and idiotic words. I try to do my work as she wants. I always try to complete my work within the time limit she sets, but she does not like my methods.

In July 2016, I discussed this matter with HR. HR also talked to her about it. After that, the employer said, "Oh, you are so sensitive then don't talk to me; I will also not talk to you - we will discuss through HR."

I could not understand her behavior; hence, I sent an email to her and also cc'd HR about my resignation. She did not reply to this. I also gave a hard copy to HR. Since I was in the probation period, I gave only an 8-day notice period. I kept reminding HR about this, but HR always said to wait. I was ready to discuss, but the director did not give time for this matter. After completing the 8-day notice period, I left my job. Until January, she has not paid me my 24 days' salary and traveling expenses for office work despite many follow-ups.

What should I do? Please guide me. Many employees are facing this situation, but nobody has received their salary.

Regards,
Russhah

Dear [Recipient],

You can file a suit against the company for nonpayment of wages. Approach your lawyer.

Thank you.

Since you have tendered your resignation and the company did not bother to reply (either accept or reject), it will be deemed that in the absence of any rejection of resignation, your resignation is accepted.

Regarding your outstanding salary of 24 days, write an official email/letter through registered/speed post (keep the acknowledgment) requesting the release of the outstanding dues and traveling expenses. If they refuse, you can proceed legally by approaching a competent lawyer.

If the manager is using abusive language, you can file a criminal FIR against the company's manager under the Sexual Harassment Act. You can also seek and claim compensation for mental torture through the consumer forum for the services rendered but unpaid.

Notice Period and Legal Implications

You have not completed your notice period and have absconded. I didn't think the company accepted your short notice period (definitely they didn't confirm in writing), so they are free to hold back your full and final settlement until you pay the notice period wages. At best, they will deduct it from your pending wages (in which case, anyway, you will get nothing).

The only thing the previous history with the company suggests is that they are happy to get rid of you, and you will get nothing from them. Also, I do not think you will gain anything by taking the legal route, for it's long and expensive, and you are starting on a weak base of absconding without completing your notice period.

You should immediately file the complaint with the Labour Commissioner to ascertain whether the company accepts your resignation and is stealing your money under the guise of absconding. There are many companies that engage in such illegal activities, and these issues need to be brought to the attention of the government through the labor department.

Dear Saswata Banerjee,

I think I was in the probation period. If I completed my probation period, then the notice period was applicable. Does this mean I will not get my salary and traveling expenses? So, I have no right to claim them. Is that correct?

Thank you.

Notice Period and Dues Settlement During Probation

First of all, let us know the notice period condition for termination of employment by either side during the probationary period as per your appointment order. Only then can we understand whether you have observed the notice period condition or not. If the notice period condition was met by you, then you should send a letter to HR with a copy to the concerned Director, requesting them to settle your dues consequent to your resignation (refer to your resignation letter date) via registered post and also by postal certificate. Wait for their reply.

If you don't receive any reply after 15-20 days, you should send another reminder letter via registered post and with a copy to the Director. After a considerable time without receiving any reply from the company, you should approach a good lawyer for further action.

Regards,
Russhah

Hi,

There is no specific mention of the probation period exit. It is only mentioned that there is a 3-month probation period and a 2-month notice period after resignation. I believe all rules are applicable after the confirmation of your service, so I served an 8-day notice period.

Understanding Notice Periods and Legal Recourse

We do not know how long you worked since you only provided vague dates. Even if you were on probation, you should have checked the notice period. At the very least, you should have stated in the resignation letter that you are assuming there is no notice period since none is mentioned in the appointment letter.

You can't assume there is no notice period. The standard practice is 30 days. Some state shop and establishment acts specify notice periods depending on how long you worked.

In this case, I suspect HR didn't respond because they expected you to make this assumption and abscond, taking advantage of the situation as it was clear they no longer wanted you there.

Exploring Your Options

What options do you have? At best, you can file a complaint with the labor commissioner. He is unlikely to take any action, or he may approach the company to ask what happened. Most likely, he will be satisfied with their response. If you are lucky, they may pay up to let you go without risking a notice.

If he doesn't send a notice, you can file a complaint before the labor court. If your salary was less than ₹18,000 per month, you have protection under the Payment of Wages Act. Otherwise, it becomes more difficult. However, a court case is expensive in terms of time and money (lawyers' fees, etc.). If you are working elsewhere, the disruption in your work will be highly counterproductive.

So, it's not that you don't have legal recourse. The question is whether you want to pursue it and if the cost is worth it.

A Case Study on Judicial Delays

I recently came across a case at a client's office where the final verdict in an unfair dismissal case was given (after repeated appeals) about 20 years after the incident. This is an example of how slow and cumbersome the Indian judicial recourse can be.

Regards, Russhah