Non- Payment of Salary Notice

What is a Legal Notice for Non-Payment of Salary? 

If your salary hasn't been paid, you don't need to keep sending follow-up emails to HR. You need a legal notice for non-payment of salary, a formal written demand that puts your employer on record and gives them a deadline to pay.

It is the first step before any labour court complaint. It is also, in most cases, enough to get your employer to settle.

Under the Code on Wages, 2019, your employer must pay your salary within 7 days of the wage period end (10 days for larger companies). Anything beyond that is a violation. You can act on it.

What's Included in Your DigiLawyer Drafted Legal Notice 

You don't need everything. But the more you have, the stronger your notice. 

• Appointment letter or offer letter from the employer. 
• Salary slips for the months salary was not paid (if available — not mandatory). 
• Bank account statements showing the last salary received and the subsequent absence of credit. 
• Written communication — emails or WhatsApp messages to HR, finance, or management requesting salary. 
• Resignation letter and acceptance (if you have resigned and dues are pending). 
• Employment contract or service agreement mentioning salary terms. 
• Any written assurances or commitments made by HR regarding payment dates.

Process of Sending a Legal Notice for Non-Payment of Salary

Why DigiLawyer Over a Traditional Lawyer or DIY Template?

Physical Courier Delivery Timelines by State

When Should You Send a Salary Notice? 

Send one when any of these are true: 

• Salary unpaid for more than 15 to 30 days past the due date. 
• You resigned or were terminated and your dues are still pending. 
• HR has stopped responding to your follow-ups. 
• Salary is being deducted without explanation or your consent. 
• Employer issued a cheque for dues and it bounced. 

Choose Your Plan

All three options are available. Pick what fits your situation.

Common Reasons Employees Send a Legal Notice for Unpaid Salary

Employees typically send a legal notice for unpaid salary in the following cases:

• Full or partial salary has not been paid for one or more months. 
• Final settlement or pending dues have not been cleared after resignation or termination. 
• Unpaid performance incentives, bonuses, or commissions are withheld without reason. 
• Employer has deducted amounts unlawfully from salary (e.g., penalties or adjustments not agreed upon). 
• Salary is being delayed regularly, affecting financial stability. 
• No proper communication or response has been given by HR or management despite follow-ups. 

Is Non-Payment of Salary a Criminal Offence in India?

This is one of the most common questions employees have. The answer depends on the circumstances:

What About Full & Final (F&F) Settlement?

This notice covers the unpaid monthly salary during employment.

If you have resigned or been terminated and your employer hasn't cleared your Full and Final settlement, which includes gratuity, earned leave, notice pay, PF, and reimbursements, that is a separate dispute. It needs a different notice.

A settlement notice covers all post-resignation dues and is more effective for F&F disputes than a general salary notice. We recommend using the right one for your situation.

What Happens After You Send the Notice? 

The employer gets a formal deadline, typically 15 days, to respond and pay. Most employers settle at this stage to avoid a labour complaint on record. 

If they don't pay: 

• You file a complaint against the company with the Labour Commissioner for not paying salary. 
• The Labour Commissioner summons the employer and attempts conciliation. 
• If that fails, the matter goes to the Labour Court, which can order full payment plus compensation. 
• In serious cases, criminal prosecution of directors is possible under the Code on Wages. 

 If your employer sends a reply or counter-notice, you can get a lawyer-drafted response through our reply to legal notice service at Rs.1,999. 

Consequences of Ignoring a Non-Payment of Salary Notice 

If the employer fails to respond or release the pending salary:

• The employee may escalate the matter through legal action or labor authorities.
• The employee can file a complaint before the Labour Commissioner or the Labour Court. 
• In some cases, civil recovery suits can be filed in court for breach of contract. 
• Company directors or HR heads may be summoned for violation of labor laws. 
• Continued non-payment may lead to penalties, compensation, or prosecution of the employer. 
• Negative publicity or online reviews may affect the employer's brand reputation and credibility. 

Governing Laws 

The employer may face consequences under the following laws: 

• Payment of Wages Act, 1936- For unlawful or delayed salary payments. 
• Industrial Disputes Act, 1947- For wrongful withholding of wages in certain categories. 
• Shops and Establishments Act (State-specific)- For companies in the private/commercial sector. 
• The Code on Wages, 2019- Consolidated law ensuring fair payment and regularity. 
• Indian Contract Act, 1872- For breach of employment contracts in civil court. 

Delays or denial of salary without lawful justification can attract penalties, interest, and legal orders for compensation. 

FAQs Related to Non- Payment of Salary