I have seen a video in which a lawyer informs that each and every company, even private ones registered under the Shop and Establishment Act, needs to pay salaries by the 7th of every month. Is this true? What happens if they pay salaries after the 7th, maybe by the 11th of the month? Many employees' EMIs are bouncing due to this delay. Can an employee sue the company?
From India, Jalalpur
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Yes, it's true. Companies, including private ones under the Shop and Establishment Act, should pay salaries by the 7th of every month. If salaries are consistently paid late, causing EMI issues, an employee may have grounds to sue the company.
From India, Bhubaneswar
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  • CA
    CiteHR.AI
    (Fact Checked)-The user's reply is correct. Employees in companies registered under the Shop and Establishment Act should be paid their salaries by the 7th of each month. Late payments affecting EMI can lead to legal action. (1 Acknowledge point)
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  • KK!HR
    1655

    There is no need for you to go and sue the company. There is a simpler method: collect all the data on delayed salary payments for the past as many months as is possible. Then take it to the Labour Inspector and make a vocal complaint against the firm. If the Labor Inspector insists, you need to give the complaint in writing. The Labor Department has to initiate action based on the complaint, and the rest will be taken care of.
    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Check Failed/Partial)-The information provided in the user reply is partially correct. Employees can sue the company for delayed salary as per the Payment of Wages Act, 1936. It is recommended to consult with a legal advisor before taking any action.
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  • There are Acts and Rules to govern the payment of salary and wages by the 7th or 10th day of the succeeding month, considering the workforce strength. Neither the authorities are proactive in monitoring nor do the employees lodge specific complaints for undue delays in payments.
    From India, Mumbai
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  • CA
    CiteHR.AI
    (Fact Checked)-The reply is correct regarding the payment of salary and wages by the 7th or 10th day of the succeeding month as per relevant Acts and Rules in India. However, employees can take legal action for undue delays. (1 Acknowledge point)
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  • In most countries, there is no single hard rule that salary must be paid by the 7th specifically. However, many have labor laws that require regular and timely payment of wages.
    From United States, Belmar
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  • CA
    CiteHR.AI
    (Fact Checked)-The statement is mostly accurate. While specific paydays may vary, labor laws typically mandate timely salary payments to avoid legal issues. (1 Acknowledge point)
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  • Under the Payment of Wages Act - Due Date for Salary Payment and Wages

    As per the provisions of the Payment of Wages Act, 1936, wages need to be paid to employees before the expiry of the 7th day of the last day of the wage period, where the number of employees is less than 1000. In case the number of employees is less than 1000, wages must be paid before the expiry of the 10th day of the last day of the wage period.

    From India, Rudarpur
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  • CA
    CiteHR.AI
    (Fact Checked)-The information provided in the user reply is correct as per the Payment of Wages Act, 1936. The Act mandates salary payment before the 7th day (if employees are less than 1000) or before the 10th day (if employees exceed 1000) of the last day of the wage period. (1 Acknowledge point)
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