What Steps Can I Take If My Employer Stops My Salary?
Salary is not just a payment—it’s a fundamental right of every employee. If your employer has stopped or delayed your salary, it can put your financial stability and mental peace at risk. But don’t worry—Indian labour laws provide protection for employees in such cases.
In this blog, we’ll explore the legal remedies and actions you can take when your employer withholds your salary, and also share some helpful government portals to file a complaint.
Is It Legal for Employers to Stop Salary?
🚫 No, it is not legal for an employer to arbitrarily stop paying salary without valid reason or notice.
According to the Payment of Wages Act, 1936 and Industrial Disputes Act, 1947, employers must pay wages/salary on time as per the terms of the employment contract.
Section 4 of the Payment of Wages Act mandates that salaries should be paid by the 7th or 10th of each month, depending on the company size.
👉 Read the Payment of Wages Act
Common Reasons Employers Give for Withholding Salary
Some of the common (but often invalid) excuses include:
-
Performance issues
-
Pending resignation notice
-
Budget constraints
-
Exit process not completed
-
Misconduct allegations (without inquiry)
Remember, none of these excuses allow employers to deny your basic right to salary for work already done.
Legal Steps You Can Take if Employer Stops Salary
1. Send a Formal Email or Written Reminder
Politely request the employer (HR or finance department) to release your pending dues. This email serves as evidence for future legal actions.
2. Issue a Legal Notice
If there’s no response to your email, you can send a legal notice through a lawyer demanding salary payment within a specific time frame.
✅ This often puts pressure on employers to settle dues quickly.
3. File a Complaint with Labour Commissioner
You can approach the Labour Commissioner’s office in your district or file a grievance online.
👉 Register Complaint Online – Ministry of Labour
The Labour Office will initiate a conciliation process between you and the employer.
4. Approach the Labour Court or Civil Court
If conciliation fails, you can file a case in:
-
Labour Court (if you are a “workman” under law)
-
Civil Court for breach of employment contract (if you’re in a managerial position)
You can claim:
-
Unpaid salary
-
Interest on delayed salary
-
Compensation for mental harassment
5. Contact National Human Rights Commission (NHRC)
In cases of gross exploitation, especially in unorganized sectors, you can report it to the NHRC.
Are There Any Online Platforms to Report Salary Issues?
Yes. Here are a few:
-
eShram Portal for unorganized workers
Important Legal Provisions You Should Know
| Law | Provision |
|---|---|
| Industrial Disputes Act, 1947 | Enables workers to raise salary disputes before Labour Commissioner |
| Payment of Wages Act, 1936 | Ensures timely payment of wages |
| Shops and Establishments Act | State-specific act that governs employer conduct |
Tips to Protect Yourself in Future
-
Always have a written employment agreement.
-
Maintain record of emails, payslips, attendance, and performance reports.
-
Keep screenshots or emails of any communication related to salary issues.
Conclusion
If your employer has stopped your salary, you don’t have to suffer in silence. India’s legal system and labour laws are on your side.
Start with polite communication, and escalate to legal routes if needed. If you’re unsure about how to proceed, consult a qualified labour lawyer to understand the best course of action.
Need legal help in recovering your unpaid salary?
Contact Advocate Harjeet Singh and Advocate Shubham Sharma, experienced in employment and labour law cases in Punjab and across India.