What if company does not pay Salary on time?

Indian law gives employees a lot of protection for their rights. Employers typically believe that workers don’t fully understand their rights under the employment contract, so they can terminate them at any time or refuse to pay their salary without repercussions. However, the law protects such instances of low salary of employees not receiving their due earnings or salaries.

Laws:

The Minimum Wage Act and the Payment of Wages Act are two more statutes that are included in the Wages Act. The primary laws governing how wages are paid to employees by their employers are these two statutes. Every employee has a right to the minimum wage, which is set forth in the Minimum Wage Act. The type of labor the employee is performing determines the minimum wage. State-by-state variations exist. The Payment of Salaries Act, the other statute, deals with the prompt and reasonable payment of wages to employers. The government has established some special officers to oversee any matters or issues that may arise regarding the improper application of these laws in order to guarantee that they are. These officers are:

1. The appointment of a commission for workers’ compensation
2. A regional labor commission is in charge of monitoring these conflicts.
3. In cases like this, the industrial tribunal’s presiding officer is a crucial officer of the law.

The Payment of Wages Act Section 4 addresses, salary distribution and specifies that it may only be prolonged for a specific period of time and not longer.

1. When it comes to regulating the behavior of shops and establishments that are present in various states, it is without a doubt the case that many states have distinct regulations and laws regarding the payment of wages. This is known as the “Shops and Establishment Act.” However, the model legislation, which establishes the framework for state-created rules, also stipulates that an employer must receive double his compensation if he works more hours than usual. If the employer fails to make payments under these circumstances, a fine of almost 2 Lakhs is imposed.
2. Section 21 of the Contract Labor (Regulation and Abolition) Act mandates that contractors pay the workers they hire on a contractual basis. The primary employer is responsible for paying the contract worker if such payment is not made.
3. Section 33C of the Industrial Disputes Act discusses the money that is owed to the employee and how to retrieve it. When an employee owes money, he or she can file a lawsuit in the appropriate court and, if the court is convinced of the validity of the claims stated, recover the money. This section also addresses situations in which an employee passes away and the company must reimburse the employee’s heirs for unpaid wages.
4. 2013’s Companies Act, Section 447, https://www.leadindia.law/talk-to-lawyerlays out the penalties for fraud. Imprisonment for a minimum of six months and a maximum of ten years. A fine that cannot be less than the amount of the fraud and may not be less than three times the amount of the fraud

Steps to be taken in case of non payment of salary due:

1. Give the attorney information concerning the Employment Contract and a bank statement as verification. Mention the repercussions of failing to pay salary and give the employer notice.
2. The employee may contact the Labor Commissioner if there is a problem with the non-payment of salary. After examining the situation, they will offer the solutions. When there is no resolution, they will present the case to the court.
3. The employee may file a lawsuit under section 33C of the Industrial Disputes Act and present their complaint to the court if the labour commissioner is unable to resolve the conflict. However, the employee can file a lawsuit within a year of the salary default, and the labour court’s decision-making process cannot take longer than three months.
4. The majority of employment contracts now have an arbitration clause because it is one of the most popular dispute resolution procedures. The arbitral tribunal may decide the case if there is any default on the same.
5. Under the terms of the Insolvency and Bankruptcy Code, a request may also be brought to the NCLT, provided that the minimum outstanding wage is at least 1 lakh rupees and the maximum unpaid salary is at least 1 crore rupees.

If you have received a benefit from someone in a contract, then it is your duty to pay them back. This is also called quantum meruit and unjust enrichment. Salary pay is the duty of the employer towards employees as an organization cannot grow without the help of its employee.