How to recover the salary dues from the company you have just resigned

 

You can take multi-pronged legal action on the private transport company for non-payment of salary, non-deposit of Provident Fund (PF), and denial of employment benefits. Here's a detailed guide on the applicable laws, forums, and procedures you can follow:

⚖️ Applicable Legal Provisions & Acts

1. Payment of Wages Act, 1936

Applicable if the employee was drawing wages below ₹24,000/month (as per latest threshold).

Violation: Non-payment or delayed payment of salary.

Jurisdiction: Authority under the Payment of Wages Act (usually the Labour Commissioner or Deputy Labour Commissioner).

 

2. Industrial Disputes Act, 1947

Applicable if the employee is classified as a “workman” under Section 2(s).

Covers: Retrenchment, benefits, unpaid dues, etc.

Remedy: File a complaint with the Labour Commissioner for conciliation and reference to Labour Court.

 

3. Employees' Provident Funds and Miscellaneous Provisions Act, 1952

If PF was deducted but not deposited or not provided at all (where applicable).

Remedy: File a complaint with the EPFO Regional Office and/or initiate a criminal complaint under Section 406 IPC (Criminal breach of trust).

 

4. Indian Contract Act, 1872

If there was a formal employment contract, breach of terms (like unpaid dues) can amount to breach of contract.

 

Remedy: Civil suit for recovery.

 

5. Code of Wages, 2019 (Yet to be fully enforced)

Consolidates various wage laws. Keep this in mind for future claims if applicable in your jurisdiction.

 

📝 Step-by-Step Legal Action

Step 1: Documentation

Ensure you have:

Appointment letter or proof of employment

Resignation letter and acceptance

Salary slips (previous months)

Bank statement (to show no salary credited)

Copy of PF number/UAN (if provided)

Copy of legal notice already served

 

Step 2: File Complaint with Labour Commissioner

File under Payment of Wages Act for unpaid dues.

Mention legal notice issued and no response.

Include claim for salary, bonus, leave encashment, etc.

Request initiation of conciliation proceedings under Industrial Disputes Act.

If conciliation fails, request reference to Labour Court.

 

Step 3: EPF Complaint (if applicable)

File a complaint with the EPFO Office using Form 13 or grievance portal.

If deductions were made but not deposited, also file a criminal complaint under Section 406 IPC in Magistrate’s Court.

 

Step 4: Civil Suit for Recovery

If the employee is not covered under the Payment of Wages Act or ID Act (e.g., managerial staff), file a civil recovery suit for unpaid wages and benefits:

Jurisdiction: Civil Judge/Small Causes Court depending on the amount.

Limitation: 3 years from the date of cause of action.

Relief: Salary dues, PF share, interest, damages (if contractually allowed).

 

Step 5: Criminal Complaint (Optional)

Under Section 420 (Cheating) or Section 406 (Criminal Breach of Trust) IPC.

Especially if company deducted PF or other dues and failed to deposit or pay.