My salary has been delayed for 3 months at a Mumbai startup. What legal remedy do I have?

"Delayed salary is a breach of the 'Payment of Wages Act' and your employment contract. For employees in Mumbai, there are several avenues from civil suits to labor commissioner complaints to recover hard-earned money from struggling or negligent employers."

💡Easy Answer

Non-payment of salary for three months is a serious legal violation. You have the right to demand your dues along with interest. Under the Payment of Wages Act, wages must be paid before the 7th or 10th of each month. Your first step should be a formal written demand. If the employer remains non-responsive, you can file a complaint with the Labor Commissioner in Mumbai or send a legal notice through an advocate. For larger amounts, you can also approach the Small Causes Court or file a summary suit under Order 37 of the CPC for the recovery of money based on the written contract of employment.

🚀 What you should do

1. 1Send a formal 'Demand Notice' via email to the HR, Finance Head, and Directors, clearly stating the pending amount and setting a 7-day deadline for payment.
2. 2Gather all evidence of your employment, including your ID card, attendance logs, punch-in records, and the last 3 months of empty bank statements.
3. 3If the startup is a Private Limited company, check the Ministry of Corporate Affairs (MCA) portal to see if the company is still active and who the registered directors are.
4. 4File a formal complaint with the Office of the Deputy Labour Commissioner in your specific Mumbai zone (e.g., BKC or Tardeo) for non-payment of wages.
5. 5If the company is undergoing insolvency, you may need to file a claim as an 'Operational Creditor' under the Insolvency and Bankruptcy Code (IBC) via the NCLT Mumbai bench.
6. 6Seek a legal injunction if you suspect the founders are planning to close the office or move assets to avoid paying the staff.