Rent is due, EMIs don’t wait, and your company still hasn’t credited your salary — with vague excuses, radio silence, or promises that keep sliding. This is a genuinely stressful situation, but Indian labour law gives you real, enforceable rights here. This guide walks through exactly what to do, step by step, using the current legal framework in 2026.

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Important: The Law Has Changed Recently

If you’ve read older articles about unpaid salary, they likely reference the Payment of Wages Act, 1936 and the Industrial Disputes Act, 1947 as the main laws. As of 21 November 2025, India has consolidated 29 central labour laws into four Labour Codes, which are now the current framework:

• Code on Wages, 2019 — governs timely payment of salaries, minimum wages, and permissible deductions
• Industrial Relations Code, 2020 — governs dispute resolution and worker protections
• Code on Social Security, 2020 — covers PF, gratuity, and social security
• Occupational Safety, Health and Working Conditions Code, 2020 — covers workplace conditions

The substance of your rights remains largely similar to the older framework, but complaints, penalties, and specific procedures now run through this consolidated system.

First — Are You a “Workman” or Not? This Matters a Lot

Indian labour law draws an important distinction:

• “Workman” (generally anyone in a non-managerial, non-supervisory role, or performing manual/technical/clerical work) — has access to faster, cheaper labour authority remedies
• Managerial/administrative employees — typically need to pursue civil remedies (like a summary civil suit) instead of the labour commissioner route

Knowing which category you fall into determines your fastest path forward.

Step-by-Step: What To Do If Your Salary Isn’t Paid

1. Gather Your Documentation Immediately

Don’t wait on verbal assurances — start collecting:

• Appointment letter and offer letter
• Recent payslips
• Attendance/timesheet records
• Bank statements showing missed salary credits
• Any written communication (emails, messages) about the delay

2. Send a Formal Written Request First

Email HR or your employer directly, clearly stating the amount owed, the period it covers, and a specific deadline for payment. Request acknowledgment. This creates a documented paper trail and is often enough to prompt action — some delays are genuinely administrative, not deliberate.

3. Send a Legal Notice

If the informal request doesn’t work, a legal notice is the next serious step. It should include:

• Your full name, designation, employee ID, and period of employment
• A month-wise breakdown of unpaid salary and the total amount owed
• Reference to the applicable law (Code on Wages, and where relevant, the Industrial Relations Code)
• A clear deadline for payment (15–30 days is standard)
• A statement that non-compliance will result in legal proceedings

Send it by registered post with acknowledgment due (RPAD) to create documented proof of delivery.

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4. File a Complaint With the Labour Commissioner

If the legal notice doesn’t produce results, file a complaint with the Labour Commissioner or Labour Inspector in the district where you worked:

• There is no filing fee
• The Labour Inspector can examine wage registers, enter the employer’s premises, and direct payment
• If you’re a “workman,” the Deputy Labour Commissioner typically appoints a Conciliation Officer, who summons the employer — in 2026, these meetings can even happen via video conferencing
• If the employer admits the debt, the officer can order payment directly
• If disputed, the case is referred to the Labour Court

You can also file online through government portals:

• SAMADHAN Portal — for wage claims under the Labour Codes
• Shram Suvidha Portal — for compliance and employer-employee grievances
• National Labour Helpline: 1800-889-6811 (or the number 155214, used by some state helplines) for immediate advice

5. Escalate to the Labour Court — Section 33C, Industrial Relations Code

If conciliation fails, you can file a recovery application in the Labour Court. This is a powerful remedy: the court directly computes the exact money owed to you. Once the court passes an order, it can be forwarded to the Collector/Tehsildar, who can recover the amount as “arrears of land revenue” — meaning they can attach and sell the employer’s bank accounts or property if necessary to pay you.

6. For Managerial/Non-Workman Roles: Civil Suit

If you don’t qualify as a “workman,” your path is typically a summary civil suit for recovery of unpaid dues, rather than the labour commissioner route.

What Penalties Can Employers Face?

Under the Code on Wages framework:

• First-time offenders can face fines up to ₹50,000
• Repeat offenders can face imprisonment up to 3 months and fines up to ₹1 lakh
• Courts can also award liquidated damages (interest) on the unpaid amount, commonly cited in the range of 12–18% per annum

How Long Does This Actually Take?

• Labour Commissioner/conciliation route: Often the fastest — where the employer cooperates, payment can sometimes be secured within a few months of filing
• Labour Court proceedings: Longer, but backed by strong enforcement power (including asset attachment)
• Civil suit (for non-workmen): Timeline varies significantly based on court backlog and complexity

Is There a Time Limit to Claim Unpaid Salary?

Yes — don’t sit on this indefinitely. Wage claims are subject to limitation periods, and delaying can weaken your position or bar the claim entirely in extreme cases. Acting promptly once you notice a pattern of non-payment protects your rights.

Benefits of Understanding Your Rights on Unpaid Salary

1. Multiple no-cost escalation paths — labour commissioner complaints and portal filings require no filing fee
2. Strong enforcement mechanisms — Section 33C recovery can lead to actual asset attachment, not just a paper order
3. Faster than typical civil litigation — the labour authority route is generally quicker than court proceedings
4. Real financial consequences for employers — increased penalties under current law create genuine pressure to pay
5. Clear documentation trail protects you — following the proper escalation steps strengthens your case at every stage
6. Legal notice often resolves it early — many employers settle once they realize the matter is being taken seriously

Conclusion

If your company isn’t paying your salary, you’re not without options — Indian labour law, especially under the newly consolidated Labour Codes, gives you a clear, enforceable path: document everything, send a formal request, escalate to a legal notice, and if needed, take it to the Labour Commissioner or Labour Court. The system is designed to move faster and cost less than typical civil litigation, and with real penalties now in place for employers, most disputes resolve well before reaching the final stages.

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FAQ

1. Do I need a lawyer to file a complaint with the Labour Commissioner?
No — filing a complaint with the Labour Commissioner is free and doesn’t require legal representation, making it accessible even without hiring an advocate. A lawyer becomes more useful if the case escalates to the Labour Court or a civil suit.

2. What’s the difference between filing with the Labour Commissioner versus a civil court?
The Labour Commissioner route (available to “workmen”) is generally faster, free, and backed by strong recovery powers including asset attachment. Non-workmen (managerial roles) typically need to pursue a civil suit instead, which can take longer.

3. Can my employer legally withhold my salary if I haven’t completed handover formalities?
This is a genuinely disputed area and depends on the specific facts and your employment contract — generally, withholding salary entirely isn’t automatically justified just because of pending formalities. Ask LawBot if you want guidance specific to your situation.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Please consult a qualified advocate or the relevant labour authority for guidance specific to your situation.

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