Hi all,

My employer has not paid me for 4 months, citing financial problems. Eventually, being broke caught up and I had to resign and join elsewhere. It's been three months since I left the company, and I still haven't received any salary. The employer continues to allege financial problems and has refused to give any status on when the salaries can be paid.

Is there any legal recourse for such problems? Are there any good labor lawyers in Mumbai city that take up such cases to completion?

Thanks all.

From India, Mumbai
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If you were drawing a salary of not more than Rs 10,000, then you can seek assistance from the Labor Court. You have to file a petition under section 15 of the Payment of Wages Act. If you were earning more than Rs 10,000, then the amount due shall be recovered following Civil Procedures only.

Make your demand for salary in writing to the employer stating: "I will be constrained to approach the appropriate authorities for the recovery of the amount as arrears of land revenue if the due amount is not paid to me within 2 weeks."

Regards,
Madhu.T.K

From India, Kannur
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While it is appropriate to take action as eloborated by Madhu at this stage, can someone point out if some action could have been taken at the early stage of nonpayment say after a month or so.

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First you check that is your last employer is Bankrupt or not? If yes, did he notified by the hon’ble court or not that he/she is bankrupt. Rgds Bhagwan
From India, Mumbai
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In the initial period of non-receipt of salary, one can proceed against the employer provided he has not been paid the salary within 7 days of any wage period. However, an employer employing 1000 or more workers can pay wages within the 10th day of the wage period.

Regards,
Madhu.T.K

From India, Kannur
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@cgnanij: Awaiting your response :)

@Madhu.T.K: I unfortunately was drawing more than 10K. Thank you for your input. I'm hoping to get proper legal representation before initiating any new contact with my ex-employer. When you mean in writing, what would you really mean. Would email do, or does this have to be printed signed mail?

@colvirendra: Yes, that information would really benefit someone who has just started a nightmare.

@tsivasankaran: I was working with my defaulting employer in a senior management role. I had a seven-figure salary. I'm now working elsewhere, thankfully not at a competitor, so that's not an excuse that can come up.

@bhagwan_07: I doubt they have declared bankruptcy. They are still conducting business as usual. Does being bankrupt impact my ability to recover my dues?

Thank you all for your interest and responses. If you would please recommend a good legal consultant who specializes in civil labor and advise a proper path ahead, I would be very grateful.

From India, Mumbai
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Hi,

Senior management cadre and working in some other company. Whatever you do legally from now onwards, keep your present employer informed and proceed. You have two options:

1. Move to a civil court for breach of contract. This process takes a long time and involves expenses.
2. There is a provision under the Shops and Establishments Act for Employees to represent their cases. You can file a petition under this Act. I am not very sure of this provision in Bombay, but in Chennai, this provision is available. In all probability, all Shops Acts will have this provision. This is faster, and you can consult your advocate on this.

Siva

From India, Chennai
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Dear Mr. Ghosh,

I am reproducing below the provisions relating to claims. I am sure you must have been working in an office that would have been registered under the Shops and Establishments Act. This provision is taken from the Delhi Act, and I am sure similar provisions are available in the Bombay Act as well.

Sec 25 Claim related to wages

(1)
The Government may, by notification in the Official Gazette, appoint any Commissioner for Workmen's Compensation Act or another officer with experience as a Judge of a Civil Court or as a Stipendiary Magistrate to be the authority to hear and decide all claims arising out of delayed payment or non-payment of earned wages of an employee employed in any establishment.

(2) Application for any such claim may be made to the authority appointed under subsection (1) by the employee himself or any official of a registered trade union authorized in writing to act on his behalf or any legal practitioner or the Chief Inspector for a direction under subsection (3):

Provided that every such application should be presented within one year from the date the claim for such wages has become payable under this Act:

Provided further that an application may be admitted after the said period of one year when the applicant satisfies the authority that he had sufficient cause for not making the application within such period.

(3) When any application under subsection (2) is entertained, the authority shall hear the applicant and the employer or give them an opportunity of being heard and after such further inquiry, if any, as it may consider necessary may without prejudice to any other penalty to which the employer may be liable under this Act, direct the payment to the employee of the amount due to him together with the payment of such compensation as the authority may think fit, not exceeding half the amount so due or Rs. 100, whichever is less.

(4) If the authority hearing any application under this section is satisfied that it was either malicious or vexatious, it may direct that a penalty not exceeding one hundred rupees be paid to the employer by the person presenting the application.

(5) Any amount directed to be paid under this section may be recovered:

(a) if the authority is a magistrate, by the authority as if it were a fine imposed by the authority as a magistrate, or

(b) if the authority is not a magistrate, by any magistrate to whom the authority makes an application in this behalf, as if it were a fine imposed by such magistrate.

(6) Every direction of the authority under this section shall be final.

(7) Every authority appointed under subsection (1) shall have all powers of a civil court under the Code of Civil Procedure, 1908 (5 of 1908) for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority shall be deemed to be a civil court for all the purposes of Section 195 and Chapter XXXV of the Code of Criminal Procedure, 1898.

Siva

From India, Chennai
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Thanks, Siva. This was really informative. I'm looking up the Bombay Act to check for such a provision. I'll update the board as soon as I find one. Now, to look for proper legal representation :) Thanks again, all.
From India, Mumbai
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