Filing a Complaint for Unpaid Salary: Can White-Collar Workers Seek Help from the Labor Department?

Filing a Complaint with the Labor Department

Can a white-collar employee file a complaint with the labor department against their employer for not paying salary? If yes, what is the procedure?

Payment of Wages Act and White-Collar Employees

Disputes relating to non-payment of wages, delayed payment of wages, wrong deductions made from wages, etc., are addressed as per the provisions of the Payment of Wages Act. The said Act, like any labor enactment, has not defined a white-collar employee. At the same time, any employee, whether he is a workman or manager, will come under the scope of the Payment of Wages Act if his wages per month do not exceed Rs 24,000. Hence, if your white-collar employee is receiving a salary of more than Rs 24,000, he cannot benefit from the protection of the Payment of Wages Act. Conversely, if his salary is less than Rs 24,000, he can file a complaint before the appropriate authority (labor department) under the Act.

If this white-collar employee is an individual contributor and not performing any managerial duties, then he/she is a workman and can file a complaint under the Industrial Dispute Act with the local labor commissioner for conciliation.

If the matter is not resolved amicably, he/she can then file a complaint in the Labor Court under the ID Act.

The non-payment of wages is a violation of the Payment of Wages Act. Employees receiving up to ₹24,000 per month as salary and wages can file a complaint before the labor authority (whether they are white-collar, blue-collar, red-collar, or any other color). Employees receiving ₹24,001 and above per month can file a case in court.

Hi, Different states have made amendments to the Payment of Wages Act as per their requirements. For example, in Haryana, the wage ceiling was removed in 2016 via an amendment, and since then, any employee with any salary can file a case before labor authorities for the recovery of their unpaid salaries. Please consult with someone knowledgeable about labor laws applicable in Assam. Feel free to contact me further if you have any queries in this regard.

Regards, Ashok Kumar Sharma CS, LL.B., B.Com Senior Manager - Legal & Liaisoning Merino Industries Ltd. Bahadurgarh, Delhi-NCR [Phone Number Removed For Privacy-Reasons]

Hi, again, it all depends on the nature of his work to determine whether he is a workman or non-workman. The Payment of Wages Act also applies as applicable. Everyone has the right to claim their unpaid wages/salary for the work done.