Unpaid Salary and Full & Final Settlement

1. Introduction

If your employer has not paid your salary, notice-period dues, or full and final settlement, the law gives you ways to recover it. This guide explains, in simple language, your rights and the practical steps to claim unpaid wages in India.

2. Who should read this?

• Employees whose salary or dues have been withheld.
• People who resigned and are waiting on a full and final settlement.
• Workers unsure where to complain about unpaid wages.

3. What the law says

• The Payment of Wages Act, 1936 requires timely payment of wages and restricts unauthorised deductions for covered employees.
• Newer labour codes consolidate wage laws; specific rights depend on your role and salary level.
• For many employees, the Labour Commissioner or labour authority can help recover wage dues.
• Higher-paid or managerial staff may need to pursue recovery through a civil suit or other remedies.
• Your employment contract and company policy also govern notice pay and settlement timelines.

4. Step-by-step process

1. Step 1Ask in writing

   Send a polite written request (email/letter) for the pending amount and a settlement statement.

2. Step 2Send a legal notice

   If ignored, send a formal legal notice demanding payment within a set time.

3. Step 3Complain to the authority

   Approach the Labour Commissioner or the appropriate authority for wage recovery, if eligible.

4. Step 4Escalate

   If unresolved, consider a civil recovery suit or other legal remedy with a lawyer.

5. Documents required

• Appointment letter and employment contract.
• Salary slips and bank statements showing non-payment.
• Resignation and relieving correspondence.
• Emails or messages about the pending dues.

6. Fees and government charges

• Complaints to labour authorities are usually low-cost or free.
• Advocate fees apply if you send a legal notice or file a suit.

Fees vary by state and change over time; treat these as general pointers, not exact figures.

7. Expected timeline

Simple cases may resolve within weeks after a notice; disputed matters before authorities or courts take longer.

8. Common mistakes to avoid

• Relying only on verbal requests with no written record.
• Not keeping salary slips and the appointment letter.
• Approaching the wrong forum for your employment category.
• Waiting too long to act.

9. Frequently asked questions

10. When you should consult a lawyer

• The employer denies dues or the amount is large.
• You are unsure which forum applies to your role.
• You received a legal notice from the employer.
• You need to file a recovery suit.

11. How LawMitran can help