Response

After a legal notice is submitted to the employer, if the employer does not react to the legal notice and does not pay the salary, the employee might pursue the following measures.

The employee might go to the labour commissioner and tell him or her about the problem.

A copy of the legal notification delivered to the employer, as well as an employment contract and a bank statement, should be attached to the complaint filed with the labour commissioner.

The job of the labour commissioner is to mediate disputes between the employer and the employee.

If the labour commissioner is unable to find a solution, the employee may file a complaint with the labour court.

The Industrial Disputes Act can be used to bring this lawsuit.

This litigation, however, must be brought within one year of the day the wage is due.

The case must be decided by the Labour Court within three months.

Employees in executive or managerial positions can sue in a civil court for non-payment of wages under the provisions of the Civil Procedure Code, 1908.

However, it is recommended that this not be the initial course of action taken by the employee.

Employees are considered operational creditors under the 2016 Insolvency and Bankruptcy Code.

As a result, an application for the recovery of underpaid salary might be filed with the NCLT.

Notice to a firm might also be used as evidence in court.

Notice to a firm might also be used as evidence in court. In a court of law, such a legal notice filed to a firm will act in the employee’s favour.

Reference: Section 7 in The Payment of Gratuity Act, 1972

7. Determination of the amount of gratuity.Ñ

(1) A person who is eligible for payment of gratuity under this Act or any person authorised, in writing to act on his behalf shall send a written application to the employer, within such time and in such form, as may be prescribed, for payment of such gratuity.

(2) As soon as gratuity becomes payable, the employer shall, whether an application referred to in sub-section (1) has been made or not, determine the amount of gratuity and give notice in writing to the person to whom the gratuity is payable and also to the controlling authority specifying the amount of gratuity so determined.

[(3) The employer shall arrange to pay the amount of gratuity within thirty days from the date it becomes payable to the person to whom the gratuity is payable.

(3A) If the amount of gratuity payable under sub-section (3) is not paid by the employer within the period specified in sub-section (3), the employer shall pay, from the date on which the gratuity becomes payable to the date on which it is paid, simple interest at such rate, not exceeding the rate notified by the Central Government from time to time for repayment of long-term deposits, as that Government may, by notification specify:

Provided that no such interest shall be payable if the delay in the payment is due to the fault of the employee and the employer has obtained permission in writing from the controlling authority for the delayed payment on this ground.]

(4) (a) If there is any dispute to the amount of gratuity payable to an employee under this Act or as to the admissibility of any claim of, or in relation to, an employee for payment of gratuity, or as to the person entitled to receive the gratuity, the employer shall deposit with the controlling authority such amount as he admits to be payable by him as gratuity.

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