Withheld salary, a delayed full-and-final settlement, unpaid reimbursements — these are among the most stressful disputes because the money is already earned. Polite follow-up emails are easy for an employer to keep deferring. A formal legal notice documents the amount due, the basis for it, and a deadline, and signals that you are prepared to escalate to the appropriate authority.
Send the employer a written legal notice demanding the exact unpaid amount within 15 days, addressed to the company at its registered office and copied to the director or HR head. Since the labour codes came into force on 21 November 2025, the Code on Wages, 2019 requires full and final wages to be paid within two working days of resignation, dismissal, retrenchment or closure, and lets you file a claim before the designated authority within three years. For salaries above the wage-claim route, or for a purely contractual claim, the remedy is a civil recovery suit.
Key takeaways
- Section 17(2) of the Code on Wages, 2019 requires wages on separation to be paid within two working days — not the 45 to 60 days that HR departments still quote as standard.
- The claim window under the Code on Wages is three years from when the claim arises, and it is condonable for sufficient cause.
- A claim decided by the authority can be recovered through a certificate to the District Collector, as arrears of land revenue — a far stronger enforcement route than a civil decree.
- Which route applies depends on whether you are an "employee" or a "worker" under the codes, and on your salary level. Get that classification right before you file anywhere.
- Never resign, hand back assets and sign a full-and-final acceptance in the same motion. Signing an unqualified acceptance is what most often ends a good claim.
Why Salary Dues Should Be Documented Formally
When salary is delayed, employees usually keep following up over email or chat — and the employer keeps buying time. Informal reminders create no pressure and no clear record of the amount owed. A formal notice fixes the dues in writing, references your employment terms, and demands payment by a deadline, which is a far stronger basis for escalation.
- No fixed statement of the amount due
- "Under process" replies with no timeline
- No reference to your employment terms
- No formal record of the demand
- No stated consequence
- States the exact dues claimed
- References offer letter / contract terms
- Sets a clear payment deadline
- Creates a dated, formal record
- Signals readiness to escalate
Your Legal Basis: Contract, Wage Laws, and Labour Route
A salary claim usually rests on your employment terms read with applicable wage and labour law. Identify what applies to you:
- Your employment contract or offer letter stating salary and terms
- Company policy on full-and-final settlement and reimbursements
- Applicable wage / labour legislation governing timely payment of wages
- The Shops and Establishments framework or labour department route, where relevant
- Records that establish the period worked and the amount due
Note: Verify with the primary source: Labour and wage rules, eligibility, and the correct authority (labour department, appropriate tribunal, or court) vary by state and by the nature of your role. Confirm the applicable law and forum with the official labour department or an advocate before relying on them.
Before You Draft: Build Your Evidence File
A salary notice should be backed by your employment paperwork. Collect these before drafting:
- Offer letter or employment contract
- Salary slips for the relevant period
- Attendance or timesheet records, if available
- Resignation or termination emails
- Full-and-final settlement communication
- Bank statements showing your salary credits (and the gap)
- HR emails and chat history about the pending dues
- Reimbursement bills that remain unpaid
- A clear calculation of the unpaid amount
Who to Address: HR, Company, or Director
Address the notice to the employer entity and the people responsible for payment.
- →Use the registered legal name of the employer company
- →Send to the registered office and, where relevant, the HR / payroll head
- →Where appropriate, also address a director or authorised signatory
- →Reference your employee ID and dates of employment
- →Send by registered post AND email for proof of delivery
- →Keep the postal receipt, tracking, and email timestamp
Note: For escalation to a labour authority, the correct office and process are state- and role-specific. Verify with the official source before relying on a particular route.
Draft a Clean Salary Recovery Notice
GetNyay builds a structured legal notice for unpaid salary and F&F dues — referencing your contract, the amount, and a deadline. 100% free — download as Word or PDF, no signup required. Verify the right forum before escalating.
Generate Salary Recovery NoticeThe 8-Part Unpaid Salary Notice Structure
A salary recovery notice should be precise about the dues and the basis. This structure keeps it complete:
- 1Header: "LEGAL NOTICE FOR RECOVERY OF UNPAID SALARY / DUES"
- 2Your details: name, address, employee ID, and contact information
- 3Employer details: company legal name and registered office address
- 4Facts in order: your role, period of employment, salary agreed, the months / components unpaid, and your follow-ups with dates
- 5Legal basis: reference your employment contract and applicable wage law, stating the dues are lawfully payable
- 6Amount demanded: the exact unpaid salary, F&F, reimbursements, and any agreed component, as a specific figure
- 7Deadline: call upon the employer to pay within a stated period (for example 15 days)
- 8Consequence: state that, failing which, you may approach the appropriate labour authority or court for recovery at the employer's cost and risk
What to Do After Sending the Notice
Use the response window to prepare your next step:
- 1Preserve proof of dispatch — registered post receipt and email timestamp
- 2If the employer offers a settlement, get the amount and payment date in writing
- 3Do not accept "under process" as closure without a dated commitment
- 4If a part payment is made, record it and note the balance due
- 5If there is no satisfactory response, consult an advocate or the labour department about the correct forum for your role (verify on the official portal)
- 6Keep all post-notice communication as part of your record
Mistakes That Weaken Unpaid Salary Claims
- ✗Not stating a specific, calculated amount of dues
- ✗Failing to reference the offer letter or contract
- ✗Overstating labour-law entitlements that may not apply to your role (verify on the official portal)
- ✗Using threatening or abusive language
- ✗Sending only informal emails with no formal notice or proof of service
- ✗Approaching the wrong forum without checking eligibility
Draft Your Salary Dues Notice in 5 Minutes
Enter your employment details and the amount pending, and our engine drafts a formal salary recovery notice. It is completely free. Download the full letter, PDF and copy-ready format at no cost — no signup required.
Create My Unpaid Salary Notice — FreeFrequently Asked Questions
Can I send a legal notice for unpaid salary?
Yes. Salary is earned money, and a formal notice documents the dues, references your employment terms, and demands payment by a deadline. It creates a formal record before you escalate to a labour authority or court.
What if the company says F&F is "under process"?
You can ask, in writing, for a definite settlement date. A vague "under process" with no timeline is exactly the kind of delay a formal notice is meant to address. Put a clear deadline in your notice and keep the reply.
Can a freelancer send a salary / payment recovery notice?
A freelancer or consultant is usually owed money under a contract for services rather than "salary," but the same principle applies — a formal recovery notice for the unpaid fees, referencing the contract and invoices, is appropriate. See our unpaid invoice guide for that scenario.
Can I claim interest?
You may be able to claim interest depending on your contract and applicable law. Keep any claim reasonable. Verify with the primary source: confirm what interest you can claim, and the basis, before stating a figure.
Should I go to the labour department or court?
The right forum depends on your role, salary level, and the nature of the claim, and the rules differ by state. Verify with the primary source: confirm the correct authority with the official labour department or an advocate before filing.
What changed on 21 November 2025, and why it matters to your claim
India's four labour codes were brought into force on 21 November 2025, consolidating 29 earlier central labour statutes. For anyone chasing unpaid salary, two of them matter: the Code on Wages, 2019, which subsumed the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976; and the Industrial Relations Code, 2020, which replaced the Industrial Disputes Act, 1947.
The single most useful change is Section 17(2) of the Code on Wages: where employment ends by removal, dismissal, retrenchment or resignation, wages must be paid within two working days. The customary "F&F takes 45 to 60 days" is a company policy, not a legal entitlement, and it no longer matches the statutory position. Saying that clearly in a notice tends to change the tone of the reply.
| Point | Position before 21 November 2025 | Position under the labour codes |
|---|---|---|
| Governing statute for wage payment | Payment of Wages Act, 1936 | Code on Wages, 2019 |
| Payment on separation | Second working day after termination, for covered employees | Within two working days of removal, dismissal, retrenchment or resignation — Section 17(2) |
| Limitation for a wage claim | 12 months under Section 15 of the Payment of Wages Act | Three years from when the claim arises, condonable for sufficient cause — Section 45 |
| Enforcement of an order | Recovery as arrears of land revenue | Recovery certificate to the District Collector or District Magistrate, recovered as arrears of land revenue |
| Industrial disputes framework | Industrial Disputes Act, 1947 | Industrial Relations Code, 2020 |
Central rules and state rules under the codes continue to be notified. Confirm the position for your state before relying on a procedural detail.
A great deal of what is published about unpaid salary in India still cites the Payment of Wages Act, 1936 and its 12-month limitation. That framework was superseded when the codes came into force. If you are reading advice that does not mention the codes, treat its timelines with caution.
Which recovery route fits your situation
There is no single door for unpaid salary, and choosing the wrong one wastes months. The right route depends on what you are owed, how you were engaged, and whether the amount is genuinely disputed or simply unpaid.
| Route | Best for | Time limit | Notes |
|---|---|---|---|
| Claim before the authority under the Code on Wages, 2019 | Unpaid wages, bonus, overtime and short payment for employees within the Code's wage-claim scope | Three years from when the claim arises | The authority can issue a recovery certificate to the District Collector |
| Recovery of money due under the Industrial Relations Code, 2020 | Workers, where an amount or a money-equivalent benefit is due and needs computing | Governed by the Code and rules made under it | The tribunal decides the computation; only for pre-existing entitlements, not new claims |
| Civil suit for recovery of money | Managerial and senior roles outside the worker definition, and purely contractual claims | Three years under the Limitation Act, 1963 | Order XXXVII summary suit may be available on a written contract |
| Section 138 Negotiable Instruments Act | Where the employer gave a cheque that bounced | Notice within 30 days of dishonour; complaint within one month of the cause of action, which arises when the 15-day cure period expires | Criminal proceeding; runs alongside the money claim |
| Insolvency route | Where the company has stopped paying everyone and is not a going concern | As per the Insolvency and Bankruptcy Code | Take advice; this is a strategic step, not a routine one |
The codes use both "employee" and "worker", and the definitions are not the same. Roles that are mainly managerial, administrative or supervisory above a notified threshold generally fall outside the worker definition, which pushes them toward the civil route. If you are unsure where you sit, that is a question worth putting to an advocate before you file — it decides the forum.
Everything you can claim, not just the base salary
Most self-drafted salary notices ask for the unpaid months and nothing else, and then settle for exactly that. Itemise the whole entitlement instead, with a figure against each head, so the employer has to respond to a schedule rather than a number.
- Unpaid basic salary and allowances for each month, listed month by month with the amount.
- Salary in lieu of notice, where the employer terminated without giving the contractual notice.
- Encashment of accrued and unused leave, per the leave policy or the applicable code.
- Gratuity, where you have completed the qualifying period of continuous service.
- Statutory bonus, where you are within the eligibility limits.
- Reimbursements already approved but not paid — travel, medical, internet, equipment.
- Incentive or commission that had crystallised before you left, with the calculation basis.
- Provident fund contributions deducted from your salary but not deposited — this is a separate and serious wrong, raised with the EPFO.
- Interest on the delayed amount, and the cost of pursuing it.
If your payslips show a provident fund deduction but the EPFO passbook shows no corresponding credit, that is not a salary dispute — it is a failure to deposit employee contributions. Raise it directly with the EPFO through the EPFiGMS grievance portal, in addition to your salary notice, and keep the payslips and passbook extract side by side.
The evidence file for an unpaid salary claim
Salary claims are won on paper. The employer controls most of the records, which is precisely why you should download everything while you still have access to the systems.
- 1Download every payslip from the HR portal before your login is deactivated. This is the item people most often lose.
- 2Save the offer letter, the appointment letter, and every subsequent revision or promotion letter stating the salary.
- 3Export bank statements showing the pattern of salary credits and the months where they stop.
- 4Save the resignation email and the acceptance, or the termination letter, with dates.
- 5Save the relieving letter and the experience letter if issued.
- 6Save every follow-up on the dues — email threads, HR ticket numbers, chat exchanges — with dates.
- 7Save the full and final settlement statement if one was issued, even if you disagree with it.
- 8Download the EPFO passbook and compare the credits against the deductions shown in the payslips.
- 9Save the company's registered name and registered office address from the MCA records — you will need the exact legal entity, not the brand name.
Notices addressed to a brand name, a trade name or a group holding company are routinely returned or ignored. Pull the exact registered name and registered office from the Ministry of Corporate Affairs records and address the notice there, with a copy to the managing director and the HR head by name.
The full and final settlement trap
The most common way a good salary claim dies is that the employee signs the full and final settlement to get the relieving letter, and only then realises the amount was short. An unqualified acceptance of an F&F is, in substance, a settlement of the claim, and unwinding it is far harder than never signing it.
You are rarely forced to choose. What you can do is accept under protest: sign, but write on the document and in the covering email that the acceptance is limited to the amount actually paid and that you reserve your claim to the balance, which you should specify.
- 1Ask for the F&F computation in writing, broken down head by head, before you sign anything.
- 2Compare it against your own schedule — unpaid months, notice pay, leave encashment, reimbursements, incentives.
- 3If it is short, say so in writing, with the difference quantified.
- 4If you need the relieving letter urgently, sign "received without prejudice to my claim for the balance of ₹X, which remains outstanding" and send the same wording by email so it is not just on a form the company keeps.
- 5Do not return company assets against a verbal promise. Get a signed acknowledgement of what you returned and when.
- 6Only then, if the balance stays unpaid, send the legal notice.
Employers frequently link the two: return the laptop and we will process the settlement. Return the assets promptly and get a receipt — retaining them weakens your position and can expose you to a separate claim. Then pursue the money on its own footing.
What the salary recovery notice must contain
- 1Heading: LEGAL NOTICE FOR RECOVERY OF UNPAID SALARY AND DUES.
- 2Addressee: the company by its exact registered name at its registered office, with copies to the managing director and the head of human resources by name.
- 3Your employment: designation, date of joining, last drawn gross and net salary, and the date and manner in which employment ended.
- 4A schedule of dues, head by head, with a figure against each and a total. This is the part the employer will actually engage with.
- 5The demand history: every date on which you asked, and what was said in reply.
- 6The legal position: the two-working-day requirement in Section 17(2) of the Code on Wages, 2019, and your contractual entitlement under the appointment letter.
- 7The demand: payment of the total within 15 days of receipt, with interest.
- 8The consequence: that failing payment you will pursue a claim before the authority under the Code on Wages, or a recovery suit, together with a complaint to the EPFO in respect of undeposited provident fund contributions, at the company's cost and risk.
- 9Annexures: appointment letter, payslips, bank statement extract, resignation or termination letter, the follow-up correspondence, and the F&F statement if issued.
A table showing March salary ₹82,000, April salary ₹82,000, leave encashment ₹41,000, reimbursements ₹6,400, total ₹2,11,400 is what gets forwarded to finance. A narrative about how badly you were treated is what gets forwarded to nobody.
Worked examples
Example 1: Two months' salary and F&F unpaid after resignation
- Monthly gross
- ₹82,000
- Unpaid months
- March and April
- Last working day
- 30 April
- Accrued leave
- 15 days
- Approved reimbursements
- ₹6,400
- F&F received
- None as at 30 August
- 1.Unpaid salary: 2 months × ₹82,000 = ₹1,64,000.
- 2.Leave encashment on a basic-and-DA basis at the company's stated formula: taken here at ₹41,000 for 15 days on a ₹82,000 gross, subject to the exact leave policy.
- 3.Approved but unpaid reimbursements: ₹6,400.
- 4.Schedule total: ₹1,64,000 + ₹41,000 + ₹6,400 = ₹2,11,400.
- 5.Under Section 17(2) of the Code on Wages, 2019 these were payable within two working days of 30 April — that is, by about 4 May. As at 30 August the delay is roughly 118 days.
- 6.Limitation for a claim before the authority is three years from when the claim arose, so the claim is comfortably in time.
Serve a notice claiming ₹2,11,400 with interest, citing the two-working-day requirement and the 118-day delay, and give 15 days. If unpaid, file a claim before the designated authority under the Code on Wages rather than going straight to a civil suit — the recovery certificate route is faster to enforce.
Example 2: F&F offered, but short by the notice pay
- Termination
- By the employer, with immediate effect
- Contractual notice period
- 2 months
- Monthly gross
- ₹1,15,000
- F&F offered
- ₹64,000
- F&F acceptance form
- Sent for signature
- Relieving letter
- Withheld pending signature
- 1.Termination with immediate effect against a two-month contractual notice period gives rise to salary in lieu of notice: 2 × ₹1,15,000 = ₹2,30,000.
- 2.The F&F offered is ₹64,000, so on the face of it the shortfall is ₹2,30,000 − ₹64,000 = ₹1,66,000, before checking leave encashment and reimbursements.
- 3.Signing an unqualified acceptance of the ₹64,000 would very likely be treated as settling the whole claim.
- 4.The correct step is to accept under protest: sign and simultaneously email that acceptance is "without prejudice to my claim for the balance of ₹1,66,000".
- 5.The relieving letter can then be collected without abandoning the claim.
Accept under protest in writing, collect the relieving letter, then serve a notice for ₹1,66,000 plus any leave and reimbursement heads. Never sign an unqualified F&F to unlock a document — the protest wording costs nothing and preserves everything.
Example 3: Payslips show a PF deduction the EPFO passbook does not
- Period
- 14 months
- PF deducted per payslip
- ₹1,800 per month
- Total deducted
- ₹25,200
- Credits in EPFO passbook
- ₹0 for the period
- Salary otherwise
- Paid in full
- 1.The payslips are the employer's own document and show the deduction, which is the whole of the proof needed that money was withheld from wages.
- 2.The EPFO passbook is the authoritative record of what was actually credited, and it shows nothing for the period.
- 3.The mismatch of ₹25,200 over 14 months is a failure to deposit employee contributions, which is treated far more seriously than a late salary.
- 4.This is raised with the EPFO through the EPFiGMS grievance portal, not with the company's HR ticketing system.
- 5.It runs alongside, and does not replace, any notice about unpaid salary heads.
File an EPFO grievance annexing the payslips and the passbook extract, and mention the same facts in the legal notice to the employer. An employer that will absorb a delayed salary complaint quietly usually reacts much faster to a regulator looking at undeposited PF.
More questions about this page
How long does an employer have to pay my final settlement in India?▼
What is the time limit to claim unpaid salary in India?▼
Where do I complain if my employer does not pay my salary?▼
Can I send a legal notice for unpaid salary without a lawyer?▼
Should I sign the full and final settlement if the amount is short?▼
Can a company withhold my relieving letter until I sign the F&F?▼
My PF was deducted but never deposited. Is that part of the same claim?▼
Can a freelancer or consultant use the same route?▼
Can I claim interest on delayed salary?▼
The company gave me a cheque and it bounced. Does that change anything?▼
What if the company has shut down or has no money?▼
Does GetNyay send the notice or file the claim for me?▼
Official sources checked
The statutes, rules and regulator pages the statements on this page were checked against.
- In force from 21 November 2025. Wages within two working days of separation; claims within three years.
- Replaced the Industrial Disputes Act, 1947 from 21 November 2025.
- Three years for a money claim, and how a written acknowledgement or part payment restarts it.
- Demand notice within 30 days of receipt of information from the bank, 15 days from receipt of that notice for the drawer to pay, and the complaint within one month of the cause of action arising. The proviso to s. 142(1)(b) lets a court take cognizance later on sufficient cause shown.
Related reading
Important Disclaimer
GetNyay is not a law firm, not an advocate, and is not affiliated with any government body. We do not provide legal representation or guarantee complaint resolution. All information is for educational and self-help purposes only. Users are responsible for verifying final content before submission. Regulator contact details and timelines are informational — always verify at official government portals before relying on them.