Legal Question in Employment Law in India

Hi,

I am working for a small IT (Pvt. Ltd.) company since 10 months. Now company is facing payment issues from clients and it is struggling to pay salary of any employee.

From reliable source, I came to know that they will pay partial or may not pay salary for the current month. Salary is normally credited on 5th of every month.

I have a contract of 2 years with the employer. In case of failing to complete 2 years in the company, the employee has to pay 3 months of gross salary in addition to 2 months notice period.

Now, the question I would like to ask you is,

1. If employer doesn't pay the salary on the said date (5th of every month) then whether it will be breach of contract ? If yes, how can sue the company ? Please advice.

Thank you in advance for your valued suggestions.


Asked on 8/17/15, 9:10 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

18.08.2015

Dear Sir / Madam,

If the Employer fails to pay salary to the Employee, it amounts to breach of contract by the Employer. You should then claim three month's gross salary plus two month's notice period salary as compensation from the Employer.

Regards,

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Answered on 8/18/15, 3:12 am


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