Stuck Without Pay: How Can I Legally Push a Big Production House to Pay Up?

Hi, I work in the film industry as a freelancer. My recent project was with a well-known company with an established producer. I and my team completed the project in September 2022. Since then, the company has not paid our salaries for the months of August and September. It's been 7 months. Every time we ask for the salary, they give us a date and don't pay on that date. As per the contract we had signed, we should be paid before the 15th of every next month.

I'm very stressed about what I should do. How can I go legal against them so that they pay immediately with interest?

Please guide me through the situation. Thank you.

Dear member,

What is happening with you is unfortunate. Before taking up the assignment, did you ask for a PO? If the PO is issued, what are the payment terms? How was the completion of the work defined, and have you obtained the work completion certificate from the purchaser?

Since you were not an employee of the company, the employer-employee relationship does not exist. Without the employer-employee relationship, the labor laws in vogue are not applicable.

Therefore, the only remedy left is to file a civil suit. Your case could fall under the provisions of the Indian Contract Act of 1872. Seek the advice of a lawyer who handles cases under this act.

If your company is registered under MSME, then there is additional legal protection. Possibly, senior members like Mr. Saswata Banerjee or Mr. Nathrao may be able to shed some light on this.

Thanks,

Dinesh Divekar

Well, the OP has stated some facts, but a lot is left unsaid. So, dear anonymous, please share the contract details or appointment details. Also, explain all circumstances of your work and project and the reason why you didn’t get paid.

Industry Associations for Protection
I believe there is a producers association and another industry association that protects artists, freelancers, and small service providers from the unethical practices of large production houses. What has been their reaction to your complaint?

What does your contract say regarding the delay in the payment of salaries? You have the choice of civil remedy as it is a breach of the contract. If your company is a registered MSME, you can use https://samadhaan.msme.gov.in/MyMsme...C_Welcome.aspx to register your complaint and get redressal. Please send a legal notice from a lawyer who deals with salary matters and the Contract Act. I presume you have completed the work required under the contract and even received a completion certificate or, at the very least, there are no disputes raised so far.

Hi, it is unfortunate to note that the producer has not released payment for 7 months due to reasons well known to him. However, check the agreement clause, which will be signed by both parties. It is advisable to communicate your grievances to the producer and request the early release of payment.

If resolving the issue directly does not yield results, arbitration with a third party may be the next step. While legal action is an option, it is a lengthy process and may harm your reputation with the current firm, which is not ideal for career development. In life, facing such challenges is common, and one must have patience and tolerance to address them to a logical resolution.

Success in your efforts is achievable if approached methodically.

All the best.

With Regards

The agreement was a violation of the Payment of Wages Act. Payment should be made within 7 days or 10 days, as the case may be, as per the Act, not within 15 days.

You have represented your case verbally several times. Now make a presentation in writing. If there is no response, once again write to the producer and mark a copy to the authority under the Payment of Wages Act. It is better to meet the authority in person and represent the case.

S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] http://www.usdhrs.in – To Strive towards excellence with effort and integrity

Dear Nathrao Sir, How do I find out if the company I worked with is MSME registered or not?

Better approach the MCA (Ministry of Corporate Affairs) and provide your details accordingly, as the Company Secretary or Managing Director will be directly instructed to settle pending dues. If not, the company's bank accounts will be frozen, and legal action from all state, community, and central agencies will commence, including PF, ESIC, and labor authorities.

Hi PSUNTOSH, I found the company's record on MCA. Thanks for the suggestion. Before I proceed to file a complaint against them, I would like to understand how effective and quick the action will be. Is this procedure really effective? Also, I would like to mention that I'm not a regular employee of the company; I was contracted for a project on a monthly basis.

Here's my contract with the company. With all trust, I'm sharing it on this platform. I trust that there will be no misuse of it, and I'll get a clear picture and help regarding my situation.