Vikas Kapoor Guest
Asked July 28, 2016

delay in payment

  • 2 Answers

My last employer has not paid my salary and gratuity till date . What action can I take against them.

Answers 2

Default avatar
Saumya Gupta

A suit of compensation can be filed in your case for recovering your outstanding money. Non-payment of salary amounts to a breach of the contractual terms of service between the employees and the said Corporation[1]. It has been held by courts in various cases that in an event of where an employee has not been paid the due salary, he is entitled to interest or reasonable compensation. In the case of Jamini Kanta Das v. Dominion of India[2], the appellant alleged for recovery of arrears of pay and for damages for illegally withholding payment and for illegal discharge from military service. The appellant’s alleged that there was disregard of the terms of agreement in the payment and his salary was reduced from Rs 150 to Rs 65. The appellant thus discontinued from the service. The court in the case held that If a person is not paid the due salary which is payable, he is certainly entitled to compensation for such withholding of payment by way of interest or reasonable compensation which flow directly from the fact of the withholding of such payment. This was a case with respect to a person employed by the Government where the employment rules govern the obligation of the Government as the employee.

For a non-government employment,  you can also file a case under Payment of Wages Act, 1936. Basic wages under the Act includes salary.[3] However, you can only file a case under Payment of Wages Act if your case falls under the definition employer or employee given in the Act. In case the said legislation does not apply you must file a simple civit suit againt your empolyer for the breach of the employment contract by not paying the salary as soon as possible. Make sure you have the copy of your employment contract which gives the salary amount and submit it as an evidence to the court.  


                 Bihar State Construction Corporation Ltd., Kamgar Union v.State of Bihar, 1994(2)BLJR1110



            Jamini Kanta Das v. Dominion of India AIR 1955 Cal 45.



                 Municipal Corporation of Delhi v. Ganesh Razak, 1994 LLR 82.



Agree Comment 0 Agrees about 5 years ago

Issue him legal demand notice for the payment of the same. If he does not pay file the case under payment of miminum wages act and before the labour authority where gratuity matters were taken according to your district.



Agree Comment 0 Agrees about 5 years ago

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