If you want to know how to recover unpaid salary from an employer in Delhi, the usual path is: send a legal notice, then file a claim before the wage authority under the Code on Wages, 2019, or a civil suit for recovery. The right forum depends on whether you are a “worker” or a managerial employee, and how much is due.
This guide covers your rights after the new labour codes, each remedy step by step, documents, timelines and common mistakes.
Key takeaways
- The four labour codes, including the Code on Wages, 2019, came into force on 21 November 2025.
- Monthly wages must be paid by the 7th of the next month; dues on resignation or termination within two working days (Section 17).
- Wage claims go to the authority under Section 45, with a limitation of three years.
- Managerial and senior employees usually recover dues through a civil suit, often a fast-track summary suit.
- A legal notice is the first step in almost every case and often leads to payment.
In this guide
Your rights under the Code on Wages, 2019
The Code on Wages, 2019 replaced the Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act and Equal Remuneration Act. Its payment rules apply to all employees, whatever their salary.
| Rule | Section | What it means |
|---|---|---|
| Monthly wages | 17(1) | Pay before the 7th day of the next month |
| Dues on resignation, termination or closure | 17(2) | Pay within two working days |
| Deductions | 18 | Only permitted deductions, capped overall |
| Claims for unpaid wages | 45 | Before the designated authority within 3 years |
| Appeal | 49 | Within 90 days of the authority’s order |
Which remedy fits your case?
| Your situation | Best remedy |
|---|---|
| Worker or junior employee, salary or full-and-final unpaid | Claim under Section 45 of the Code on Wages |
| Dismissed or retrenched without due process | Industrial dispute under the Industrial Relations Code, 2020 |
| Manager or senior employee with written salary terms | Civil suit for recovery, often a summary suit under Order 37 CPC |
| Employer has shut down or is insolvent | Claim as operational creditor or through the liquidator |
| Employer issued cheques that bounced | Section 138 NI Act complaint, alongside recovery |
How to recover unpaid salary: step by step
- Collect evidence: appointment letter, salary slips, bank statements, attendance records, emails about dues, resignation and relieving letters.
- Write to HR by email, listing the amount due and asking for payment by a date. This creates a record.
- Send a legal notice through an advocate, giving 15 days to pay and stating the legal action you will take.
- File a claim before the wage authority for your district (under the Delhi Labour Department) with a statement of dues and documents (contact details are on the Delhi Labour Department website), or file a civil suit in the District Court if you are not covered as a “worker”.
- Hearings and settlement: the authority hears both sides and can direct payment of the dues along with compensation.
- Enforcement: an unpaid order can be recovered as arrears of land revenue; a civil decree is enforced through execution.
Documents required
| Document | Why |
|---|---|
| Offer / appointment letter | Proves salary terms |
| Salary slips and bank statements | Shows what was paid and what is due |
| Attendance records, timesheets, emails | Proves you worked the period claimed |
| Resignation, acceptance and relieving letter | Fixes the date dues became payable |
| Legal notice and postal receipts | Shows demand and refusal |
Timelines and costs
| Step | Typical time |
|---|---|
| Legal notice response period | 15 days |
| Wage authority claim | A few months, depending on the district |
| Summary suit under Order 37 | Often 6–12 months if leave to defend is refused |
| Ordinary civil suit | 1–3 years |
From practice in Delhi: most salary disputes settle after a properly drafted legal notice that cites the Code on Wages and the employer’s penalty exposure. Employers are especially sensitive to proceedings that name directors or that may affect their compliance records. A notice that attaches a clear calculation of dues, month by month, is far harder to ignore.
Special cases: notice period, deductions and bounced salary cheques
Notice-period recovery and deductions
Employers often hold back the final salary to “adjust” notice-period shortfall, training bonds or laptop damage. Section 18 of the Code allows only listed deductions, within an overall cap, and a deduction must have a basis in your contract and the law. A blanket withholding of the entire final salary is usually open to challenge.
Salary paid by a cheque that bounced
If the employer paid your dues by cheque and it was dishonoured, you can send a statutory notice within 30 days of the bank memo and then file a complaint under Section 138 of the Negotiable Instruments Act, alongside the wage claim. Our cheque bounce lawyer in Delhi page explains how this works.
Employer in financial trouble
If the company is closing down or has entered insolvency, file your claim quickly. Workmen’s dues have priority in liquidation, and claims must be lodged with the resolution professional or liquidator within the time they announce.
Prevention: protect yourself before you resign
- Keep a personal copy of your appointment letter, revisions and the last six months’ salary slips.
- Resign by email and keep the acknowledgement.
- Ask in writing for the full-and-final settlement amount and date.
- Do not sign a settlement or no-dues certificate until the amount is credited.
- If you are joining a new employer, have your new contract reviewed by a contract drafting lawyer in Delhi, especially notice-period and bond clauses.
Can you complain to the police?
Non-payment of salary is usually a civil or labour dispute, not a crime. Police will generally refuse to register an FIR for unpaid salary alone. A criminal complaint is possible only where there is clear deceit from the start, such as a fake company or forged documents, or where the employer’s salary cheque bounces under Section 138 NI Act. In most cases, the wage authority or a civil court is the faster and more reliable route.
Common mistakes to avoid
- Resigning without written proof of dues or a copy of your appointment letter.
- Signing a “full and final” settlement that waives unpaid amounts.
- Waiting too long — though the limitation is three years, evidence and the employer’s funds may disappear.
- Filing in the wrong forum based on designation rather than actual duties.
- Ignoring the employer’s counter-claims, such as notice-period recovery.
How a labour lawyer helps
A lawyer can identify whether you are a “worker”, choose the right forum, draft the legal notice and the claim, and negotiate a settlement. See our labour lawyer in Delhi page and our money recovery lawyer in Delhi services. Our guide on how to send a legal notice in Delhi explains the first step.
For advice specific to your situation, you may consult a qualified advocate.
Frequently asked questions
What can I do if my company is not paying my salary?
Start with a written email to HR and then a legal notice giving 15 days to pay. If unpaid, file a claim under Section 45 of the Code on Wages before the wage authority, or a civil recovery suit if you are a managerial employee. Keep all salary slips and bank statements.
How long does an employer have to pay final settlement after resignation?
Under Section 17(2) of the Code on Wages, 2019, wages due must be paid within two working days of resignation, removal, dismissal or retrenchment. Many employers delay full-and-final settlement for months, which you can challenge through a legal notice and a wage claim.
Is there a time limit to claim unpaid salary?
Yes. A claim under Section 45 of the Code on Wages must be filed within three years from when it arises, though the authority may accept a later claim for sufficient cause. A civil suit for recovery of money generally has a three-year limitation under the Limitation Act.
Can a manager file a complaint before the labour authority?
The Code’s wage payment rules apply to all employees, but supervisory staff earning above the notified ceiling are excluded from the definition of “worker” for some purposes. Senior managers usually recover dues through a civil suit, often a summary suit under Order 37 CPC based on written terms.
Can I send a legal notice to my employer for unpaid salary?
Yes. A legal notice sent through an advocate states the amount due, the legal basis and the action you will take if unpaid. It is often enough to get payment, and it creates a record that supports a later claim or suit.
Can I claim interest or compensation on delayed salary?
The authority under the Code on Wages can award compensation in addition to the unpaid amount. In a civil suit, the court may award interest. The amount depends on the delay, the terms of employment and the evidence you produce.
Conclusion
Learning how to recover unpaid salary comes down to the right sequence: evidence, a legal notice, and then a claim under the Code on Wages or a civil suit. Acting early, with complete documents, gives the best chance of full recovery.
Related guides and services
- Labour Lawyer in Delhi
- Money Recovery Lawyer in Delhi
- Civil Lawyer in Delhi
- Guide: How to send a legal notice in Delhi
- Guide: How to file a civil suit in Delhi
Speak to SRLM Law Associates
For advice specific to your situation, you may consult a qualified advocate. Advocate Shubham Mehta and the SRLM Law Associates team can be reached at +91 92052 74745 or [email protected]. Chamber: 1310, Lawyer’s Chamber Block, Rohini Courts, Delhi – 110085. Office: 250, Kayan Vihar, Delhi – 110033. Open daily, 9 am – 9 pm. See our Google reviews and directions.
This article is for general information only and is not legal advice.




