Salary Delays in Limited Companies: How to Address Unequal Payment Practices?

Salary Payment Issues in Limited Companies

1. The employer is paying salaries at their discretion, with no fixed date. The company is "Limited."

2. Salaries are paid on different dates for employees and contract staff. The delay for contract staff can be almost 10 days, sometimes even 20 days.

Who in the government can handle this matter appropriately, and what legal actions are taken in such cases?

Dear Colleague,

Payment of Wages Act 1936

The law governing the payment of wages is the Payment of Wages Act 1936. The Act states that in cases where fewer than 1,000 employees are employed, wages must be paid on or before the 7th of every month. The same provision applies under the Contract Labour Act, and it is the responsibility of both the contractor and the principal employer. If wages are not paid within the timeline, escalations may be made to the Labour Enforcement Officer of your area or through the Grievance Portal of the Central Labour Department or State Labour Department, as applicable.

Time of Payment of Wages

Under the Payment of Wages Act:
5. Time of payment of wages:
(1) The wages of every person employed upon or in:
(a) any railway, factory, or [industrial or other establishment] employing fewer than one thousand persons, shall be paid before the expiry of the seventh day,
(b) any other railway, factory, or [industrial or other establishment], shall be paid before the expiry of the tenth day after the last day of the wage period in respect of which the wages are payable.

Responsibility for Payment of Wages under the Contract Labour Act

21. Responsibility for payment of wages:
(1) A contractor shall be responsible for payment of wages to each worker employed by him as contract labour, and such wages shall be paid before the expiry of the prescribed period.
(2) Every principal employer shall nominate a representative duly authorised by him to be present at the time of disbursement of wages by the contractor, and it shall be the duty of such representative to certify the amounts paid as wages in the prescribed manner.
(3) It shall be the duty of the contractor to ensure the disbursement of wages in the presence of the authorised representative of the principal employer.
(4) In case the contractor fails to make payment of wages within the prescribed period or makes a short payment, the principal employer shall be liable to make payment of wages in full or the unpaid balance due, as the case may be, to the contract labour employed by the contractor and recover the amount so paid from the contractor either by deduction from any amount payable to the contractor or as a debt payable by the contractor.