Non-payment or delayed payment of salary is a violation of employee rights and workplace ethics. Despite legal obligations under Indian labour laws, many employers—especially in startups, private firms, and unorganised sectors—fail to disburse timely wages or full-and-final settlements. To tackle such issues, the Payment of Wages Act, 1936, and the Industrial Disputes Act, 1947, offer employees a formal legal framework to seek redressal. In addition, digital platforms like Online Legal India simplify the grievance process with Online Dispute Resolution (ODR) support. In this blog, you will learn how to file a complaint against employers for salary non-payment.
Who Can File a Complaint Against Non-Payment of Salary?
The persons who can file a complaint against non-payment of salary are as follows:
A permanent employee works full-time with a fixed monthly salary. The employer provides an appointment letter, defines work hours, and offers basic employment benefits. If the employer fails to pay compensation within the scheduled cycle, the employee has the legal right to file a complaint.
A contractual worker signs a fixed-term agreement with the company or an outsourcing agency. The contract mentions salary terms, duties, and duration of work. If the employer or agency does not release the salary as agreed, the worker can raise a complaint under labour laws.
A part-time employee works for fewer hours than a full-time worker but still receives wages based on the agreed schedule. If the employer does not release the payment as per the agreement, the employee can seek legal relief for the unpaid wages.
- Probationers and Trainees
A probationer works for a trial period before permanent confirmation. A trainee works under a training agreement that includes paid terms. If the employer promises payment in writing or through official email, the individual can file a complaint if the salary is not credited.
- Resigned or Terminated Employees
An employee who resigns or faces termination remains eligible to receive unpaid salary, incentives, or final settlement. If the employer refuses to clear dues, the employee can file a formal complaint for non-payment under applicable laws.
- Workers in the Unorganised Sector
Workers without formal contracts who work in shops, small businesses, or informal setups fall under this category. If the employer assures payment verbally or through digital records and does not pay, the worker can approach the local labour department for complaint filing.
Grounds to File a Complaint
Listed below are the valid grounds to file a complaint against non-payment of salary:
- Salary Is Not Paid on the Due Date
An employee can file a complaint if the salary is not credited within the regular payment cycle. As per law, wages must be paid by the 7th or 10th of the following month, depending on the organisation's size. Any delay beyond this timeline without a valid reason gives the employee a legal ground to file a complaint.
- Employer Fails to Clear Final Settlement
If an employee resigns or gets terminated and the employer does not release the final payment—including salary, bonus, or leave encashment—the employee can initiate a complaint. The law requires the employer to clear dues within a reasonable period after exit.
- Salary Is Deducted Without Justification
If the employer makes unauthorised deductions or cuts a portion of the salary without prior notice or valid reason, the employee can approach the labour authority. Salary deduction without written consent violates payment laws.
- Employer Stops Paying Without Termination Notice
If the employer stops paying salary but does not issue a termination letter or official communication, the employee can file a complaint. Silent withholding of wages is a breach of contract and workplace policy.
- Employer Does Not Respond to Salary Requests
If repeated follow-ups or written salary requests do not receive any response from the employer, the employee should file a formal complaint. Continued silence or delay from the employer side shows intentional non-payment.
How to File a Complaint Against Non-Payment of Salary?
To file a complaint against non-payment of salary, you need to follow the steps listed below:
Step 1: Raise the Issue Through Internal Grievance Channels
An employee must first report the salary issue through the employer's internal system. Most organisations have an HR helpdesk, grievance portal, or email-based complaint route. The employee should mention the unpaid amount, the expected due date, and the period of non-payment. This communication helps the employer understand the concern and gives them a fair chance to resolve it.
Step 2: Send a Written Reminder to HR or Management
If there is no response through the internal system, the employee should send a formal written reminder to the HR manager or reporting authority. The letter or email must include the offer letter copy, payslips (if available), and a clear demand for the release of salary within a specific deadline. This step creates a traceable record for future reference.
Step 3: Approach the Labour Commissioner’s Office
If the employer refuses to pay or ignores the complaint, the employee can approach the Labour Commissioner in the concerned district. The complaint must include employment proof, bank statements, prior communication, and a written application. The labour officer may issue a notice to the employer and conduct an inquiry into the matter.
Step 4: File a Complaint Under the Payment of Wages Act, 1936
Employees earning up to ?24,000 per month can file a complaint under this Act. The labour authority examines the salary records and can order the employer to release the unpaid wages, along with a penalty for delay.
Step 5: Initiate Proceedings Under the Industrial Disputes Act, 1947
Employees earning above the wage limit of Rs. 24,000/- or those who face termination without a full and final settlement can raise a dispute before the Conciliation Officer. If the issue remains unresolved, the case may proceed to the Labour Court or Industrial Tribunal for adjudication.
Step 6: File a Case in the Labour Court
When all other remedies fail, the employee can file a petition in the Labour Court. The complaint must include all supporting documents and a clear claim for unpaid salary, interest, and compensation. The court has the power to direct the employer to settle the dues and impose penalties for non-compliance.
While Labour Courts offer a formal route for salary recovery, the process often involves delays, legal costs, and in-person hearings. In contrast, Online Dispute Resolution (ODR) provides a faster, paperless solution. It enables employees to file complaints, send legal notices, and resolve disputes digitally, without courtroom formalities or prolonged timelines.
Why Choose ODR Over the Labour Court?
The reasons to choose ODR over the labour forum are as follows:
Labour courts take several months to hear a salary dispute. The employee must attend multiple hearings and follow strict procedures. ODR platforms follow a fixed timeline and resolve most cases within a few weeks. This allows the employee to get relief without long waiting periods.
Labour courts require the employee to visit the court, file hard copies, and attend in-person hearings. In ODR, every step happens online. The employee can file a complaint, submit documents, and receive updates from a mobile or computer. This saves time and avoids physical hassle.
Filing a case in a labour court involves court fees, lawyer charges, and travel expenses. In ODR, the platform charges a one-time fee that covers legal drafting, communication, and mediation. This reduces the total cost and avoids unexpected legal expenses.
Labour court petitions need legal language and structured documentation. In ODR, the employee only needs to submit basic details like name, employer name, unpaid salary amount, and evidence. The platform team prepares the legal documents. This helps employees who are not familiar with legal formats.
ODR platforms appoint qualified legal professionals and mediators. These experts understand employment laws and draft strong notices. They guide the employee throughout the process. In labour courts, the employee often needs to hire a private lawyer, which adds cost and effort.
Labour courts deal with many cases, which causes long delays and frequent adjournments. ODR platforms handle one case at a time per expert. The process moves quickly because the system avoids backlogs, staff shortages, and courtroom scheduling issues.
What is Online Dispute Resolution?
Online Dispute Resolution (ODR) is a digital system that helps resolve legal conflicts without court visits. It turns the traditional dispute settlement process into a fast and paperless model. The system uses secure websites, email, and video conferencing tools to manage complaints. It gives valid legal solutions for civil and commercial matters like contract disputes, unpaid dues, or service failures. The process remains simple, private, and cost-effective. ODR works through three legally accepted methods. They are as follows:
- Mediation
Mediation allows both parties to discuss their issue in front of a neutral person known as a mediator. The mediator does not make a final decision. Instead, the mediator helps both sides understand each other and reach a fair outcome. The solution only works when both parties agree. Mediation does not follow strict legal rules. It focuses on mutual understanding, saves time, and avoids tension. The entire discussion remains confidential and informal.
- Arbitration
Arbitration involves a legal expert called an arbitrator who listens to both parties and then gives a final decision. This decision is called an arbitral award. The award has the same legal force as a civil court judgment. Arbitration suits cases that involve salary disputes, breach of contract, service failure, or refund refusal. The arbitrator may be a former judge or a legal expert. The process follows the rules of the Arbitration and Conciliation Act, 1996. It ensures speed, structure, and legal validity.
As per official data, over 3.6 million cases have been resolved through ODR platforms. So, you can go for it.
Legal Acceptance of ODR
Online Dispute Resolution (ODR) holds full legal recognition in India. The Arbitration and Conciliation Act, 1996, gives arbitral awards issued through ODR the same authority as civil court judgments. The Information Technology Act, 2000, validates electronic communication and digital records. The Consumer Protection Act, 2019, promotes the use of technology in dispute settlement, and the Mediation Act, 2023, officially recognises online mediation. Institutions like NITI Aayog, IRDAI, and the Supreme Court of India endorse ODR as a credible and efficient alternative. These laws together establish ODR as a legally accepted mechanism for resolving civil and commercial disputes.
How ODR Works for Salary Non-Payment?
If the labour court fails to provide a solution to your case, you can file an ODR with an ODR platform like Online Legal India. The step-by-step process to file a complaint against salary non-payment through a recognised ODR platform is explained below:
Step 1: Gather All Relevant Employment Records
Begin by collecting essential documents that prove your employment and the salary dispute. This includes your appointment letter, payslips, bank statements showing salary credits, resignation letter (if applicable), communication with HR or your reporting manager, and any internal grievance raised. These documents must be clear and time-stamped. Strong documentation ensures the complaint proceeds smoothly without objections or clarification delays.
Step 2: Submit Your Complaint on a Verified ODR Platform
Once your documents are ready, visit a verified ODR platform such as Online Legal India. Fill in your details, employer's name, designation, unpaid salary amount, and the relevant dates. Upload all supporting documents and double-check every detail before submitting. Incomplete or incorrect entries may result in delays. Once submitted, the platform assigns a neutral legal expert to review your case and initiate communication.
Step 3: Start the Mediation Process
After acceptance, a certified mediator reaches out to both you and the employer using digital tools such as video calls, email, or secure chat. The mediator reviews your complaint, considers both versions and facilitates a neutral discussion to help reach a mutual resolution. Mediation avoids conflict, maintains confidentiality, and promotes voluntary settlement in a structured manner.
Step 4: Move to Arbitration if Mediation Fails
If the employer disagrees or the mediation fails, the complaint moves to arbitration—provided both parties agree to it or the employment terms include an arbitration clause. Arbitration remains fully legal under the Arbitration and Conciliation Act, 1996. Ensure your documents, replies, and responses are legally valid and within the limitation period.
Step 5: Attend the Arbitration Hearing Online
In the arbitration stage, a qualified arbitrator examines the salary dispute through a virtual session. You must present your evidence clearly and respond to any questions or objections raised by the employer. The arbitrator conducts the session impartially and gives both sides equal opportunity to explain their position.
Step 6: Receive the Final Arbitral Award
After reviewing all facts, the arbitrator issues a written order called an arbitral award. This decision is final, legally enforceable, and carries the same weight as a civil court decree. If the ruling favours you, the employer must comply with the order—whether that involves full salary payment, interest, or compensation—within the legally specified timeframe.
Conclusion
To sum up, non-payment of salary is not just a financial lapse—it is a breach of lawful employment rights. Indian labour laws offer employees multiple forums for redressal, but formal systems often lead to long wait times and procedural delays. Online Dispute Resolution (ODR) bridges this gap with speed, legality, and accessibility. It delivers structured remedies through expert-led mediation and arbitration—entirely online.
For reliable legal support, swift notice drafting, and end-to-end ODR assistance, Online Legal India stands out as a trusted digital platform. Their legal experts ensure your salary dispute reaches a timely and enforceable resolution, without courtroom stress.
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