Salary Not Paid by Employer: What to Do Under the Code on Wages

If your employer has not paid your salary, first make a written demand, then send a legal notice, and if needed file a claim before the authority appointed under section 45 of the Code on Wages, 2019, within three years. Under section 17 of the Code, monthly wages must be paid before the expiry of the seventh day of the next month, and on resignation, dismissal or retrenchment, dues must be paid within two working days. Employees outside the Code’s coverage can file a civil suit for recovery.

What the Code on Wages says

The four Labour Codes came into force on 21 November 2025. The Code on Wages, 2019 replaced the Payment of Wages Act, the Minimum Wages Act, the Payment of Bonus Act and the Equal Remuneration Act.

Section 17 fixes when wages must be paid:

• daily wages: at the end of the shift;
• weekly wages: on the last working day of the week, before the weekly holiday;
• fortnightly wages: before the end of the second day after the fortnight;
• monthly wages: “before the expiry of the seventh day of the succeeding month”.

When an employee is removed, dismissed, retrenched, resigns, or becomes unemployed because the establishment closes, wages payable must be paid within two working days. The appropriate Government can prescribe a different time limit by rules, so check your state’s rules too.

Step-by-step: getting your unpaid salary

1. Collect your proof. Appointment letter, salary slips, bank statements showing past credits, attendance or login records, resignation email and acceptance, relieving letter, and any email or WhatsApp where HR admits the dues.
2. Make a written demand. Email HR and your reporting manager. State the months unpaid, the amount, and ask for payment within 7 days. Keep it calm and factual.
3. Send a legal notice. If the demand fails, a legal notice through an advocate states the dues, the legal basis and your next step. Many employers settle here. See how to send a legal notice in India and legal notice for recovery of money.
4. Raise a grievance on Samadhan. The Ministry of Labour’s Samadhan portal (samadhan.labour.gov.in) lets workers file grievances and disputes online. It is handled by the labour department machinery.
5. File a claim under section 45. Apply to the authority appointed by the appropriate Government. The application can be filed by you, a registered trade union of which you are a member, or the Inspector-cum-Facilitator. The authority can direct payment and award compensation up to ten times the claim determined. If the employer still does not pay, the authority can send a recovery certificate to the Collector, who recovers it as arrears of land revenue.
6. File a civil suit if you fall outside the Code’s coverage, or if your claim is better framed as a contract claim. With a written appointment letter, a summary suit under Order XXXVII of the Code of Civil Procedure may be possible.

Who is covered, and who should go to civil court

The Code on Wages defines “employee” broadly, covering manual, clerical, technical, supervisory and managerial work. Even so, a senior manager with a detailed employment contract, large variable pay or disputed bonuses may find a civil suit on the contract the cleaner route, while a shop assistant or factory worker in Kanpur should use the section 45 authority. If coverage is in doubt on your facts, take advice before choosing the forum.

Consultants and freelancers paid on invoices are not employees. Their route is a legal notice and a civil suit for recovery. Small businesses registered as micro or small enterprises owed money by buyers use the MSMED Act, 2006, but that law is for business dues, not employee salaries.

Common mistakes

• Waiting too long. Three years sounds long, but evidence goes stale and companies shut down.
• Signing a “full and final settlement” form that says nothing is due when money is still due.
• Leaving without a resignation acknowledgement. Always resign by email and keep the reply.
• Threatening the employer on social media. It can invite a defamation claim and does not get you paid.
• Holding company property such as a laptop as leverage. Return it against a receipt.

Real-life example

Imran worked as an accounts assistant at a Lucknow distributor for ₹22,000 a month. He resigned on 31 March after two months without salary. The employer ignored his email. He sent a legal notice in April claiming ₹44,000 and his April notice-period wages. When there was no reply, he filed a claim before the section 45 authority with his salary slips and bank statements. The employer paid at the first hearing to avoid an order for compensation.

Frequently asked questions

By what date must my monthly salary be paid?

Before the expiry of the 7th day of the following month, under section 17(1) of the Code on Wages, unless the government has prescribed a different time limit.

I resigned. When must my dues be paid?

Wages payable must be paid within two working days of resignation, under section 17(2).

How long do I have to file a claim?

Three years under section 45. The authority may admit a later claim if you show sufficient cause for the delay.

Can I file a police complaint for unpaid salary?

Non-payment of salary is usually a civil and labour law matter. A criminal complaint is appropriate only where there is a separate offence such as cheating, which is fact-specific.

Does the consumer forum handle salary disputes?

No. An employee is not a consumer of the employer’s services.

Quick quiz

For a practical course on work rights and recovering dues, see Everyday Law for Every Indian.

Sources

• Code on Wages, 2019, sections 2, 17 and 45
• Code of Civil Procedure, 1908, Order XXXVII
• Micro, Small and Medium Enterprises Development Act, 2006
• Ministry of Labour and Employment, Samadhan portal

This page is for education and general information, not legal advice for a specific case. Law as on 29 October 2026.