Resolving Unpaid Dues and Employer Compliance Issues: A Guide to Legal Action - CiteHR

I need your help sincerely, and I want to come out of this financial problem. Please help me. I joined a small IT company with 50 employees in May 2014. Since then, I have been facing many issues with the employer in terms of pending salaries, income tax, PF, and professional tax. I don't know whom to contact to resolve my problems. Is the right way to proceed with a legal notice? If we decide to go legal, what is the procedure to follow?

Salary Issues

Since I joined, the employer has not been paying salaries on time. I have pending salaries for the months of June 2015, May 2015, April 2015, and March 2015. Note: Some employees have pending salaries for 5 months, while others have pending for 6 months. How can I receive my pending salaries properly?

Income Tax Concerns

Since I joined in May 2014, the employer has not been paying income tax to the government, although it is deducted and shown on the payslips monthly. How can I file a complaint with Income Tax India?

Provident Fund Issues

Since I joined in May 2014, the basic PF amount of Rs. 1800 is being deducted from my salary but not deposited into the PF account. How can I get my amount into the PF account?

Professional Tax Verification

How can I confirm that professional tax is being paid to the state government, considering the irregularities by my employer?

Final Note

1. Our company has only one HR person who depends on the employer. We lack a dedicated finance team and use a third-party payroll company for payslip generation.
2. The employer (MD/CEO), an Indian living in the USA, personally handles the finance part and processes salaries every month.
3. The employer visits every 6 months and is unresponsive to emails and calls.
4. We are in touch with him through emails and phone calls but receive no response.
5. The company has 3 locations (2 in India - Pune and Hyderabad, and 1 in the USA) with PF accounts associated with the Pune PF branch.

Please assist me in every scenario. Thank you in advance.

Thanks,
Babu

From India, Hyderabad
Acknowledge(0)
Amend(0)

Dear Babu, What is happening in your company is horrible. The problem in our country is that those who clamor about "Inspector Raj ruining the businesses in India" do not respond to these posts. Neither do they read these posts, their legal expertise, or qualifications notwithstanding.

Options for Action

You have two options. One is to continue with the flow, look for another job, and get out. The other option is to make a complaint in the Labour office, PF Office, and Income Tax office. A simple call from their office will send shivers to the employer. However, if you follow this option, there is a risk of loss of employment. Secondly, when the employer comes to know, he may not issue you the service-cum-employment certificate when you leave the job. This will create a problem in getting a job in the future.

Anyway, other senior members will also give their opinions.

Thanks,
Dinesh Divekar

From India, Bangalore
Acknowledge(0)
Amend(0)

CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.