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Delhi · Employment · Labour Codes 2025

Unpaid Salary and Wrongful Termination in Delhi: Your Rights Under the New Labour Codes

Salary held back for months, a full and final settlement that never comes, a sudden "you need not come from tomorrow", a resignation forced at a meeting, gratuity refused after years of service: employment disputes are among the most common legal problems for working people in Delhi. Since 21 November 2025, the four Labour Codes have replaced 29 older labour laws, changing the deadlines for paying wages, the definition of wages, the route to labour tribunals and the rules on retrenchment. This guide explains who is protected, the payment deadlines, how to claim unpaid wages and gratuity, when a termination is illegal and what remedies follow, the separate position of managers and senior staff, Delhi's 2026 changes to shops and establishments law, and what the courts have decided recently. Share your situation in the form and an enrolment-checked advocate can call you, at no charge to you.

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Quick answer

Under the Code on Wages, 2019, in force since 21 November 2025, monthly wages must be paid by the seventh day of the following month, and all dues must be paid within two working days of removal, dismissal, retrenchment or resignation. Unpaid wages can be claimed before the authority under the Code within three years, and the employer can be ordered to pay compensation on top. Gratuity is payable after five years of continuous service (one year for fixed-term employees) at 15 days\' wages per year, under the Code on Social Security. A worker who is dismissed, discharged or retrenched can raise an individual industrial dispute: after applying for conciliation, the worker may approach the Industrial Tribunal directly once 45 days pass, and the dispute must be raised within two years. Retrenchment needs notice and compensation; illegal termination can lead to reinstatement or compensation. Managers and senior staff outside the "worker" definition rely mainly on their contract and civil courts. Start with a written demand and a legal notice, and keep every document.

Employment disputes in Delhi: the new legal landscape

For decades, an employee in Delhi with a salary or termination problem had to navigate a patchwork of laws: the Payment of Wages Act, the Minimum Wages Act, the Industrial Disputes Act, the Payment of Gratuity Act, the Delhi Shops and Establishments Act and many more. That changed on 21 November 2025, when four consolidated Labour Codes took effect across India, folding 29 older central statutes into the Wage Code (2019), the IR Code (2020), the Social Security Code (2020) and the OSH Code (2020). The Centre issued its rules under all four Codes on 8 May 2026; Delhi and other states have been working on their own.

The Codes keep many familiar protections but change important details: a single definition of wages, tighter deadlines for paying dues on exit, gratuity for fixed-term employees after one year, a reskilling fund payment on retrenchment, and a faster route to tribunals for individual disputes. Parts of the Codes are being rolled out in stages, and disputes arising from facts before 21 November 2025 can still fall under the earlier statutes. Knowing which law applies to your dates is the first step.

Please note: Mara Vakil is an online service for reaching independent lawyers; it is not itself a law practice, gives no legal advice, and charges you nothing to make contact. Labour law transitions are still settling; check current rules for your situation. This page reflects the position as of October 2026.

The four Codes at a glance

CodeReplaces (among others)Key for employees
Code on Wages, 2019Payment of Wages Act, Minimum Wages Act, Payment of Bonus Act, Equal Remuneration ActDefinition of wages, minimum wages, timely payment, deductions, bonus, claims
Industrial Relations Code, 2020Industrial Disputes Act, Trade Unions Act, Industrial Employment (Standing Orders) ActTermination, retrenchment, closure, standing orders, disputes and tribunals
Code on Social Security, 2020EPF Act, ESI Act, Payment of Gratuity Act, Maternity Benefit Act and othersPF, ESI, gratuity, maternity benefit, gig and platform worker schemes
OSH Code, 2020Factories Act, Contract Labour Act and othersWorking hours, overtime, appointment letters, safety, contract labour

Who is protected, and how

Coverage differs across the Codes, and this matters a great deal for remedies.

Designation alone does not decide whether someone is a "worker". Courts look at the nature of the main duties: a "manager" who mostly does clerical or technical work, with no power to hire, fire or sanction, may still be a worker. This question often decides whether a terminated employee can go to the Industrial Tribunal or must sue in a civil court.

Government and public sector employees

Service disputes of Union government staff go to the Central Administrative Tribunal; Delhi Government employees to the tribunal or courts provided for them; and public sector employees may have writ remedies in the Delhi High Court. This guide focuses on private employment.

When wages must be paid

Section 17 of the Code on Wages fixes deadlines:

Wage periodDeadline
DailyAt the end of the shift
WeeklyOn the last working day of the week, before the weekly holiday
FortnightlyBefore the end of the second day after the fortnight
MonthlyBefore the expiry of the seventh day of the following month
On removal, dismissal, retrenchment or resignationWithin two working days

The two-working-day rule for exit dues is a significant change. Many employers in Delhi were used to settling "full and final" dues 45 or 60 days after an employee left. Under the Code, wages payable on exit must be paid within two working days, though other dues governed by separate provisions, such as gratuity, have their own timelines.

What counts as wages

The Code adopts a single definition of wages for all purposes, covering basic pay, dearness allowance and retaining allowance, and excluding certain items such as bonus, house rent allowance, conveyance, overtime and the employer's PF contribution. If excluded items exceed 50 per cent of total remuneration, the excess is added back to wages. This affects the calculation of gratuity, PF and other benefits, and employees whose salary was heavily loaded into allowances may see higher benefits.

Deductions

Only deductions authorised by the Code can be made, such as taxes, PF and ESI contributions, recovery of advances and loans, fines imposed in accordance with the Code, and deductions for absence. Total deductions in a wage period generally cannot exceed 50 per cent of wages. Arbitrary deductions for "losses", "notice shortfall" beyond the contract, or "damages" without due process can be challenged.

Minimum wages

The Delhi Government notifies minimum wages for unskilled, semi-skilled, skilled and graduate or higher categories, revising the variable dearness allowance twice a year. The Code also provides for a national floor wage. Paying less than the notified minimum is unlawful even if the employee agreed to it. Check the current rates on the Delhi Labour Department's website.

Overtime and working hours

Under the Codes, overtime is payable at twice the ordinary rate of wages, with the worker's consent. Delhi's 2026 amendment to its Shops and Establishments Act also changed working hours and overtime limits for shops and commercial establishments, explained below.

How to claim unpaid wages

Step 1: written demand

Write to HR and the management by email, listing the months unpaid, the amounts, and the dues on exit. Ask for payment by a specific date. Keep the reply, or the silence, as evidence.

Step 2: legal notice

A legal notice from an advocate, citing the Code on Wages deadlines and the consequences of non-payment, often produces payment or a settlement offer. Mara Vakil's paid legal notice service can draft one.

Step 3: claim before the authority

Section 45 of the Code on Wages provides for claims arising from non-payment, short payment, delayed payment or unlawful deductions to be heard by an authority appointed by the appropriate government, usually an officer of the labour department. The claim must generally be filed within three years from the date on which it arises. The authority can direct payment of the amount due and also award compensation, which can be up to ten times the amount in appropriate cases. Claims can be filed by the employee, a trade union, or an inspector-cum-facilitator on the employee's behalf.

Step 4: other routes

Gratuity, provident fund and other exit benefits

Gratuity

Under the Code on Social Security, which absorbed the Payment of Gratuity Act, an employee who has rendered continuous service of at least five years is entitled to gratuity on superannuation, retirement, resignation, death or disablement, or termination. The five-year condition does not apply on death or disablement. Fixed-term staff become eligible after a single year, with gratuity in proportion to their service. Gratuity is calculated at 15 days' wages for every completed year of service (or part exceeding six months), based on last drawn wages, up to the statutory ceiling, which has been Rs 20 lakh. Because the wage definition now limits allowances to 50 per cent, gratuity calculated on "wages" may be higher than before for many employees.

Gratuity is payable within the time the law prescribes after it becomes due, failing which interest is payable. Disputes go to the controlling authority under the Code. Gratuity can be forfeited only in limited cases, such as termination for misconduct causing financial loss, or for riotous or violent conduct or offences involving moral turpitude, to the extent and in the manner the law allows.

Provident fund

Employers covered by EPF must deduct and deposit contributions. Employees can check deposits through the EPFO portal using their UAN. Where the employer deducted but did not deposit, complain to the EPFO; non-deposit of deducted contributions can also attract criminal liability. On leaving, PF can be transferred to the new employer or withdrawn as permitted.

Leave encashment, bonus and notice pay

Leave encashment and notice pay depend on the contract, standing orders, and law. Statutory bonus under the Code on Wages applies to employees within the prescribed wage ceiling in covered establishments. Bonuses, incentives, retention payments and stock options beyond the statute depend on the terms of employment and are enforced as contractual claims.

Experience and relieving letters

Employers sometimes withhold relieving or experience letters to pressure employees. There is no general statute requiring an experience letter, but withholding documents to force an employee to give up dues may be challenged, and courts have taken a dim view of coercive tactics. A legal notice often resolves this.

When is a termination illegal?

The answer depends on who you are and how you were terminated.

For workers under the Industrial Relations Code

For employees who are not "workers"

Managers and senior staff are governed mainly by their employment contract. Termination in breach of the contract's notice clause entitles them to damages, usually the salary for the notice period and contractual benefits. Courts generally do not order reinstatement of private employees in contract cases, because a contract of personal service is not specifically enforced, except in narrow situations.

Forced resignations

Employees are often asked to "resign" in a meeting to avoid a termination letter. A resignation obtained by coercion or threat can be challenged as in substance a termination. Do not sign under pressure; ask for time and the request in writing, and record what happened in an email soon after.

Protected situations

Raising an industrial dispute in Delhi

Under the Industrial Relations Code, a dispute connected with the discharge, dismissal, retrenchment or termination of an individual worker is an industrial dispute even if no union or group of workers takes it up, continuing the position under the old section 2A of the Industrial Disputes Act.

The route

  1. Conciliation: the worker files an application before the conciliation officer of the labour department with jurisdiction. Both parties are summoned and the officer attempts a settlement.
  2. Direct access to the Tribunal: if the dispute is not settled, the worker can apply directly to the Industrial Tribunal after 45 days from the date of the application for conciliation, without waiting for a government reference.
  3. Time limit: disputes must be raised within two years, as the Code provides.
  4. Tribunal proceedings: pleadings, evidence and arguments, followed by an award. The Tribunal can order reinstatement with or without back wages, or compensation in lieu.
  5. Challenge: awards can be challenged by writ petition before the High Court.

Which government is "appropriate"?

The appropriate government, and therefore the conciliation machinery and tribunal, depends on where the establishment and the worker are located and the nature of the employer. In Rajeshwar Dayal Aggarwal v. Enicar Machine (India) (11 May 2026), the Delhi High Court upheld a finding that the Delhi Government lacked jurisdiction to refer a dispute of a worker employed at a Faridabad unit merely because the company's registered office was in Delhi. Workers in NCR should check this carefully before filing.

Reinstatement or compensation?

Courts have increasingly awarded lump-sum compensation instead of reinstatement, especially where much time has passed or the relationship has broken down. In Sauraj Singh v. Indian Airlines (8 May 2026), the Delhi High Court found that 1998 retrenchments breached the retrenchment provisions and enhanced compensation, graded by length of service, instead of ordering reinstatement. Back wages are not automatic; the worker's employment in the meantime and the circumstances matter.

Delhi's labour courts and tribunals

Delhi's labour courts and industrial tribunals have sat in the Dwarka court complex since 2017, along with central government industrial tribunals. With the Labour Codes, tribunals under the Industrial Relations Code take over the work, and transition arrangements apply to pending cases. Check with the Delhi Labour Department or an advocate where your case should be filed.

Managers, senior staff and contractual claims

Employees outside the "worker" definition have fewer statutory routes, but strong contractual ones.

Contractual claims of significant value are filed in Delhi's civil courts; those over Rs 2 crore are filed directly in the Delhi High Court. Commercial courts do not ordinarily deal with employment contracts.

Delhi Shops and Establishments Act: the 2026 changes

The Delhi Shops and Establishments Act of 1954 governs a large share of the city's commercial workplaces, from showrooms and offices to eateries and hotels. In 2026, Delhi amended it significantly. The Delhi Shops and Establishments (Amendment) Act, 2026 was passed by the Legislative Assembly on 9 January 2026, received Presidential assent on 23 February 2026 and was notified on 11 March 2026. As reported, the main changes are:

SubjectChange
ApplicabilityNow applies to establishments employing twenty or more employees
Daily hoursUp to ten hours including the lunch interval
Weekly hoursUp to 60 hours, from 54
Continuous workUp to six hours without a break, from five
Spread-overA uniform maximum of twelve hours
Overtime cap144 hours per quarter, instead of 150 hours a year
Women at nightPermitted with written consent and safeguards, including CCTV, security, safe transport, at least two women on shift and POSH compliance

The Act has also historically required notice or wages in lieu before dispensing with the services of employees with a minimum period of service, except for misconduct, and provided a route to the prescribed authority against wrongful termination. Employees of establishments still covered should check how these provisions apply after the amendment and alongside the Labour Codes.

What to do, step by step

  1. Collect documents: offer letter, appointment letter, salary slips, bank statements, attendance records, emails about salary, HR policies, termination or resignation correspondence, and PF and ESI numbers.
  2. Calculate your dues: unpaid salary, notice pay, leave encashment, bonus, gratuity, and reimbursements.
  3. Write to the employer: a polite, clear email demanding payment by a date.
  4. Send a legal notice if there is no response.
  5. Decide the forum: wage claim before the authority; conciliation and Industrial Tribunal for termination disputes of workers; civil suit for contractual claims of non-workers; controlling authority for gratuity; EPFO for PF.
  6. File within time: three years for wage claims under the Code on Wages, two years for raising industrial disputes, and the Limitation Act's periods for civil claims.
  7. Consider settlement: many employers pay once a formal process begins; make sure any settlement is in writing and covers all dues.

Delhi Labour Department

The Delhi Labour Department operates through district labour offices, with labour officers, conciliation officers and inspectors-cum-facilitators. Complaints can be made in person or through its online systems. For establishments under central jurisdiction, such as banks, airlines, railways and certain central public sector undertakings, the central labour machinery under the Chief Labour Commissioner applies.

Delhi workplace situations, worked through

These are composite illustrations, not real cases.

1. Terminated in Okhla without notice

A quality inspector with four years' service in a factory in Okhla is told to stop coming, with three months' salary unpaid. He is a worker under the Industrial Relations Code. His advocate sends a legal notice demanding wages and retrenchment compensation, then files a wage claim before the authority under the Code on Wages and an application for conciliation challenging the termination. After 45 days without settlement, the advocate approaches the Industrial Tribunal directly. The employer settles by paying wages, notice pay, retrenchment compensation and an agreed amount instead of reinstatement.

2. A software manager in Gurugram and Delhi

A delivery manager working from a Delhi office of an IT company is terminated with only 15 days' notice although his contract requires 60 days. He supervises a team and earns well above the threshold, so he is not a worker. His claim for 45 days' salary in lieu of notice, unpaid variable pay promised by email and leave encashment is pursued through a legal notice and then a civil suit; his salary for the last month, unpaid beyond the deadline, is also claimed under the Code on Wages.

3. A shop assistant in Karol Bagh

A shop assistant paid below the notified minimum wage for two years quits and claims the difference. The authority under the Code on Wages orders payment of the shortfall and compensation. She also checks that her PF was deposited through the EPFO portal.

4. Gratuity refused after six years

An accountant resigns after six years; the employer refuses gratuity, saying she left without serving full notice. Gratuity cannot be withheld on that ground. She applies to the controlling authority and receives gratuity with interest for the delay.

Choosing a labour lawyer in Delhi

Labour and employment cases reward an advocate who knows both the new Codes and the transition rules, and who regularly appears before the labour authorities, industrial tribunals and the Delhi High Court. Look for someone who:

Put a short note about your job and the dispute in the form above, and verified Delhi labour advocates can phone you. There is no charge for this; legal fees are a matter between you and the lawyer. Mara Vakil's paid legal notice and legal notice reply services are often the first step. You can also browse labour lawyers in Delhi, read about labour law practice, or see how to choose an advocate.

Calculating your dues: worked illustrations

These simplified examples show how common dues are worked out. Actual figures depend on your wage components, contract and the law in force on the relevant dates.

Gratuity

Formula: last drawn monthly wages × 15 ÷ 26 × completed years of service (a part year of more than six months counts as a full year). For an employee with last drawn wages of Rs 40,000 a month and 7 years 8 months of service: 40,000 × 15 ÷ 26 × 8 = about Rs 1,84,615. If the employee's basic pay was low and allowances high, the 50 per cent rule may raise the "wages" figure used here.

Retrenchment compensation

Fifteen days' average pay for every completed year of continuous service. For a worker with average monthly pay of Rs 25,000 and 4 years' service: 25,000 × 15 ÷ 30 × 4 = Rs 50,000, plus one month's notice pay if notice was not given, plus the employer's separate contribution of 15 days' wages to the Worker Re-skilling Fund.

Notice pay for a non-worker

If a manager earning Rs 1,20,000 a month with a 60-day notice clause is terminated with 15 days' notice, the shortfall of 45 days is worth roughly Rs 1,80,000, plus contractual benefits for that period.

Delayed wages

For three months' unpaid salary of Rs 30,000 each, the principal claim is Rs 90,000. The authority under the Code on Wages may add compensation for the delay, and interest may also be claimed in civil proceedings.

Common workplace problems and the legal answer

ProblemLegal position and what to do
Salary cut without consentA unilateral reduction in agreed pay is a breach of contract and, if it takes wages below what is due, an unlawful deduction. Object in writing and claim the difference.
Salary delayed every monthRepeated delay violates the payment deadlines; complaints to the labour authority and claims for compensation are possible.
Company shut down without payingClaim wages, notice and closure compensation where applicable; if the company is insolvent, file claims in the insolvency process.
Startup layoffsWorkers are entitled to retrenchment safeguards; non-workers to contractual notice and severance terms. Check whether the employer followed notice and compensation rules.
Termination during probationProbationers can usually be discharged under the terms of appointment, but not for victimisation, and dues must still be paid.
Termination by email or WhatsAppThe mode does not make it valid or invalid by itself; what matters is notice, reasons where required, and compliance with law and contract.
"Abandonment of service" allegedEmployers sometimes claim an employee abandoned work; keep proof of your attempts to report, emails asking for duties, and medical records if absent due to illness.
Training bond or recovery of training costsReasonable bonds requiring repayment of actual training costs may be enforced; penalties far exceeding real costs are often struck down.
Original certificates retained by employerEmployers have no right to keep employees' original educational certificates to prevent them leaving; demand return and, if refused, take legal action.
Paid in cash with no salary slipsEmployment can be proved through attendance, messages, co-workers, ID cards, and bank deposits; minimum wage and timely payment rules still apply.
Notice period buyout refusedDepends on the contract; an employer cannot hold you indefinitely, and disputes over notice recovery should be resolved by negotiation or claim.
Full and final settlement delayed for monthsWages on exit are due within two working days under the Code on Wages; other dues such as gratuity have their own timelines.

Women employees: maternity, harassment and night shifts

Contract, outsourced and agency workers

Many Delhi workers, such as security guards, housekeeping staff, drivers and data entry operators, are employed through contractors or manpower agencies and placed at a principal employer's premises, including government offices and hospitals. If the contractor fails to pay wages, the law makes the principal employer responsible for ensuring payment, and the principal employer can recover the amount from the contractor. Contract workers should keep their ID cards, attendance records and any documents showing where they worked. Complaints can be made to the labour department against both the contractor and the principal employer. Under the OSH Code, contract labour rules apply to establishments engaging fifty or more contract workers, and contract labour in core activities is restricted with exceptions.

Old labour laws and the new Codes compared

IssueBefore 21 November 2025Under the Labour Codes
Payment of wages on exitWithin two working days of removal or dismissal under the Payment of Wages Act; resignation not expressly coveredWithin two working days of removal, dismissal, retrenchment or resignation
Coverage of wage protectionPayment of Wages Act limited by a wage ceilingAll employees, no ceiling
Definition of wagesVaried across lawsUniform, with the 50 per cent allowances rule
Gratuity for fixed-term staffFive years' service requiredProportionate after one year
Standing orders threshold100 workers in many cases300 workers
Permission for retrenchment100 or more workers300 or more workers
Reskilling contributionNone15 days' wages per retrenched worker
Individual disputesSection 2A; direct access to labour court after 45 days of conciliation applicationSimilar route to Industrial Tribunal after 45 days; two-year limit
Labour courtsLabour courts and industrial tribunalsIndustrial Tribunals under the IR Code

Evidence to gather and preserve

Forward important emails to your personal account before you lose access to the office system, but do not take confidential company data beyond what you need to prove your own claim; misuse of confidential information can create problems.

A simple structure for your demand email

  1. Subject: Request for payment of pending salary and dues: [your name, employee ID].
  2. Opening: your designation, date of joining, and date of leaving or termination.
  3. Dues: a table of each month unpaid and other dues: notice pay, leave encashment, bonus, gratuity, reimbursements.
  4. Legal basis: a line noting that under the Code on Wages, monthly wages are due by the seventh of the next month and exit dues within two working days.
  5. Request: payment by a specific date, say seven days, and issue of relieving and experience letters.
  6. Closing: polite statement that you will take legal remedies if not resolved.

Keep the tone factual. If there is no response, an advocate's legal notice is the next step.

Time limits at a glance

ClaimUsual time limit
Wage claim under the Code on WagesThree years from when the claim arises
Raising an industrial dispute on terminationTwo years under the IR Code
Approaching the Industrial Tribunal directlyAfter 45 days from the conciliation application
Civil suit for contractual duesGenerally three years under the Limitation Act
Cheque bounce complaintDemand notice within 30 days of dishonour; complaint within one month after the 15-day notice period
Gratuity applicationWithin the period prescribed, with delay condonable for sufficient cause

Before you sign a settlement or release

Most employment disputes end in a settlement, often at the conciliation stage or after a legal notice. Employers usually ask the employee to sign a release giving up all claims. Read it carefully.

Gig and platform workers in Delhi

Delivery riders, cab drivers on apps and other platform workers are a large part of Delhi's workforce. They are usually engaged as independent partners rather than employees, which limits claims under wage and industrial relations law. The Code on Social Security recognises gig and platform workers and provides for welfare schemes funded partly by aggregators' contributions, along with registration. Disputes about payouts, deactivation and incentives are mostly governed by the platform's terms, with possible remedies in consumer or civil forums depending on facts. Where a "partner" is in reality controlled like an employee, courts may look at the substance of the relationship. Gig workers injured in road accidents can also claim under motor accident law; see our MACT guide.

When does the police get involved?

Salary disputes are mainly civil and labour matters, and police generally do not register FIRs simply because salary is unpaid. Criminal remedies may arise where an employer deducted PF or other amounts and did not deposit them, issued salary cheques that bounced, forged documents, threatened or assaulted an employee, or cheated job seekers by taking money for jobs that did not exist. In those cases, see our guide on getting an FIR registered in Delhi.

For employers: avoiding disputes under the new Codes

Employers in Delhi, especially small and medium businesses, can avoid most of these disputes with a few practices:

Mara Vakil's legal notice reply service can help an employer respond to an employee's notice, and advocates on the platform advise businesses on compliance.

Unpaid salary and termination in Delhi: frequently asked questions

When must monthly salary be paid?

Before the seventh day of the following month under section 17 of the Code on Wages.

How quickly must my final dues be cleared?

Wages due on exit must be paid within two working days, whether you resigned or were removed.

Are the Labour Codes in force?

Yes, since 21 November 2025, with central rules notified on 8 May 2026.

Which laws did the Labour Codes replace?

29 central laws including the Payment of Wages Act, Minimum Wages Act, Industrial Disputes Act and Payment of Gratuity Act.

Does the Code on Wages apply to managers?

Yes. Timely payment and minimum wage rules apply to all employees.

Who is a worker under the Industrial Relations Code?

Employees doing manual, skilled, technical, operational or clerical work, excluding managers and supervisors earning above Rs 18,000 a month.

Does my designation decide if I am a worker?

No. Courts look at the main nature of your duties.

How do I claim unpaid salary?

Write to the employer, send a legal notice, then file a claim before the authority under the Code on Wages.

What is the time limit for a wage claim?

Generally three years from when the claim arises.

Can I get compensation for delayed wages?

Yes. The authority can award compensation in addition to the amount due.

Can my employer deduct salary for losses?

Only authorised deductions are allowed, generally capped at 50 per cent of wages.

What counts as wages under the new law?

Basic pay, DA and retaining allowance, with excluded allowances added back if they exceed 50 per cent of remuneration.

Does the 50 per cent rule affect gratuity?

Yes. It can increase the wage base for gratuity and other benefits.

Is paying below minimum wage legal if I agreed?

No. Minimum wages cannot be waived.

Where can I find Delhi minimum wages?

On the Delhi Labour Department website; rates are revised twice a year.

What is the overtime rate?

Twice the ordinary rate of wages, with consent, under the Codes.

When am I entitled to gratuity?

After five years of continuous service, or proportionately after one year for fixed-term employees.

How is gratuity calculated?

15 days' wages for each completed year of service, based on last drawn wages, up to the ceiling.

What is the gratuity ceiling?

It has been Rs 20 lakh.

Can gratuity be withheld if I did not serve notice?

No, not on that ground alone; forfeiture is allowed only in limited misconduct cases.

Where do I complain about unpaid gratuity?

To the controlling authority under the Code on Social Security.

What if PF was deducted but not deposited?

Complain to the EPFO; non-deposit can attract penalties and criminal liability.

How do I check my PF deposits?

Through the EPFO portal using your UAN.

What is retrenchment?

Termination for reasons other than misconduct, superannuation, non-renewal of a fixed term or ill-health.

What must an employer do to retrench a worker?

Give one month's notice or wages, pay retrenchment compensation of 15 days' pay per year, and notify the government.

What is the Worker Re-skilling Fund?

A fund to which employers contribute 15 days' last drawn wages for each retrenched worker, within 45 days under the rules.

Do large establishments need permission to retrench?

Yes. Industrial establishments with 300 or more workers need prior government permission for lay-off, retrenchment and closure.

What is last come, first go?

The rule that the last person employed in a category is ordinarily retrenched first.

Can I be dismissed without an enquiry?

For misconduct, a fair enquiry is required. The Supreme Court stressed this in Jai Prakash Saini (2026).

What are standing orders?

Rules on conditions of service and misconduct, required for establishments with 300 or more workers.

Can I challenge a forced resignation?

Yes. A resignation obtained by coercion can be treated as a termination.

Should I sign a resignation letter in a meeting?

Do not sign under pressure; ask for time and written reasons.

Can I be fired during maternity leave?

No. Dismissal during maternity leave or due to pregnancy is prohibited.

Can I be fired for a POSH complaint?

Victimisation for a sexual harassment complaint is unlawful.

What is an individual industrial dispute?

A dispute about a single worker's discharge, dismissal, retrenchment or termination, which can be raised without a union.

How do I raise an industrial dispute?

Apply to the conciliation officer; if unresolved after 45 days, approach the Industrial Tribunal directly.

Is there a time limit for an industrial dispute?

Disputes must be raised within two years under the Code.

Can the Tribunal order reinstatement?

Yes, with or without back wages, or compensation instead.

Are back wages automatic?

No. They depend on circumstances, including employment elsewhere in the meantime.

Which government handles my dispute?

The appropriate government depends on where the establishment and worker are; a Delhi registered office alone may not be enough.

What did the Delhi High Court decide in Rajeshwar Dayal Aggarwal (2026)?

That Delhi lacked jurisdiction for a worker employed in Faridabad merely because the company's office was in Delhi.

What did the Delhi High Court decide in Sauraj Singh (2026)?

It found illegal retrenchment and enhanced compensation instead of reinstatement.

Where are Delhi's labour courts?

Delhi's labour courts and industrial tribunals have sat at the Dwarka court complex since 2017.

Can a manager go to the Industrial Tribunal?

Generally no, if outside the worker definition; contractual remedies apply.

What can a manager claim on wrongful termination?

Notice pay and contractual benefits as damages, through notice and civil suit.

Can a private employee get reinstatement through a civil court?

Rarely; courts usually award damages, not reinstatement, for personal service contracts.

Can I be stopped from working for a rival after I quit?

A non-compete that bites after employment ends is ordinarily void under section 27 of the Contract Act.

Do confidentiality clauses survive my exit?

Yes, reasonable confidentiality and trade secret obligations can continue after you leave.

Can my employer withhold my relieving letter?

There is no general statutory right, but coercive withholding can be challenged.

My salary cheque bounced. What now?

Send a statutory demand notice and, if unpaid, file a section 138 NI Act complaint.

Can I sue for unpaid bonus?

Contractual bonuses can be claimed in civil court or as part of dues.

What happens if my company goes insolvent?

Employees can file claims in the insolvency process and may be operational creditors.

Is non-payment of salary a crime?

Usually a civil wrong, but non-deposit of deducted PF or cheating can be criminal.

What changed in the Delhi Shops Act in 2026?

Applicability to 20 or more employees, 10-hour days, 60-hour weeks, 12-hour spread-over, new overtime cap and women's night shift rules.

When was the Delhi Shops amendment notified?

On 11 March 2026.

Can women work night shifts in Delhi shops?

Yes, with written consent and safeguards like CCTV, transport, security and at least two women on shift.

Does the Delhi Shops Act apply to small shops?

After the 2026 amendment, it applies to establishments with twenty or more employees.

Do the Codes help gig and delivery workers?

They bring gig and platform workers into social security schemes, but these workers are not treated as employees for every purpose.

Do fixed-term employees get the same benefits?

Yes, broadly on par with permanent staff, including proportionate gratuity.

Is an appointment letter compulsory?

The OSH Code requires appointment letters for workers in covered establishments.

Can I complain to the Delhi Labour Department?

Yes, at the district labour office or through its online systems.

Who handles disputes in banks and airlines?

The central labour machinery under the Chief Labour Commissioner.

Should I settle with my employer?

Often yes, if all dues are covered in writing; take advice before signing a release.

What documents should I keep?

Offer and appointment letters, salary slips, bank statements, emails, attendance and termination papers.

Can I claim for events before 21 November 2025?

Transition rules may apply the old laws to earlier events; take advice on the applicable law.

Can a trade union file my claim?

Yes, unions and inspectors-cum-facilitators can file claims on behalf of employees.

What is an inspector-cum-facilitator?

An officer under the Codes who inspects and also advises employers and workers on compliance.

Do I need a lawyer for a wage claim?

Not necessarily, but a lawyer helps with complex claims, terminations and tribunal cases.

What does it cost to get a labour lawyer's call?

Nothing. Platform charges apply only to papers it drafts for you.

Will Mara Vakil fight my case against my employer?

No. An independent advocate you choose does; the platform only makes the introduction.

Can Mara Vakil send a legal notice for unpaid salary?

Yes, through its paid legal notice service.

What if my employer sends me a legal notice?

Respond carefully; Mara Vakil offers a paid legal notice reply service.

How is gratuity calculated with an example?

Last drawn monthly wages × 15 ÷ 26 × completed years; Rs 40,000 for 8 years gives about Rs 1.85 lakh.

Does a part year count for gratuity?

More than six months in the last year counts as a full year.

How is retrenchment compensation calculated?

Fifteen days' average pay per completed year of continuous service.

Can my employer cut my salary without consent?

Not unilaterally; it is a breach of contract and may be an unlawful deduction.

What if my company shut down without paying?

Claim wages and closure compensation; if insolvent, file in the insolvency process.

Can I be terminated during probation?

Usually under the appointment terms, but not for victimisation, and dues must be paid.

Is termination by WhatsApp valid?

The mode alone does not decide validity; notice and legal requirements matter.

What if my employer says I abandoned my job?

Keep proof of your attempts to report and reasons for absence; abandonment must be shown, not assumed.

Is a training bond enforceable?

Reasonable recovery of actual training costs may be; excessive penalties are often unenforceable.

Can my employer keep my original certificates?

No. Employers cannot retain original certificates to stop you leaving.

I was paid in cash. Can I still claim?

Yes. Employment can be proved through attendance, messages, co-workers and other evidence.

Can I buy out my notice period?

It depends on the contract and negotiation with the employer.

Am I entitled to maternity leave?

Eligible women get paid maternity leave under the Code on Social Security.

Can I be dismissed while pregnant?

No. Dismissal on account of pregnancy or during maternity leave is prohibited.

Does every office need a POSH committee?

Employers with ten or more employees must constitute an Internal Committee.

Is equal pay for women required?

Yes. The Code on Wages prohibits gender discrimination in wages for similar work.

Who pays a contract worker if the contractor does not?

The principal employer must ensure payment and can recover from the contractor.

Can I complain against the principal employer?

Yes, alongside the contractor, before the labour department.

Are security guards covered by minimum wages?

Yes, as per the notified category for their work.

Do housekeeping staff in hospitals have wage rights?

Yes, against the contractor and, for payment, the principal employer.

What is a principal employer?

The establishment where contract workers are deployed, which has certain liabilities for their wages and welfare.

Do contract labour rules apply to small establishments?

Under the OSH Code, they apply to establishments engaging fifty or more contract workers.

Can I claim interest on delayed salary?

Interest may be claimed in civil proceedings, and the wage authority can award compensation.

Is variable pay part of wages?

It depends on its nature and the contract; the Code's definition and the 50 per cent rule may be relevant.

Can I recover salary from a company director personally?

Generally the company is liable; personal liability arises only in specific situations recognised by law.

Did the old law require dues on resignation within two days?

The old Payment of Wages Act did not expressly cover resignation; the Code on Wages now does.

Was there a salary ceiling for wage protection before?

Yes, under the Payment of Wages Act; the Code on Wages has no ceiling.

What happened to labour courts under the IR Code?

Industrial Tribunals take over their work, with transition arrangements for pending cases.

Should I forward work emails to my personal account?

Keep evidence of your own claim, but avoid taking confidential company data you do not need.

What should my demand email say?

Your details, the dues month by month, the legal deadlines, a payment date and a request for relieving letters.

How long do I have to file a civil suit for salary?

Generally three years under the Limitation Act.

What is the deadline for a cheque bounce notice?

Within 30 days of receiving the dishonour information.

Can I claim salary after the company asks me to work from home unpaid?

Unpaid work arrangements without agreement may be challenged; claim wages for work done.

What if my employer pays part salary every month?

Short payment is a wage claim; record each month's shortfall.

Is a verbal termination valid?

It may be effective, but record it in writing immediately and seek written reasons.

Can my employer reduce my notice pay for unused leave?

Adjustments must follow the contract and law; arbitrary deductions can be challenged.

Do I get paid for unused leave on leaving?

Leave encashment depends on law, standing orders and the contract.

Can a company refuse full and final settlement until I return a laptop?

It can recover its property lawfully, but cannot withhold wages beyond the legal deadline as leverage.

Can an employer sue me for leaving without notice?

It may claim notice pay as per the contract, but cannot hold your wages hostage beyond lawful adjustments.

Are interns entitled to wages?

Depends on the arrangement; genuine employment attracts wage laws, while training stipends depend on terms.

Can apprentices claim minimum wages?

Apprentices are governed by the Apprentices Act and stipend rules rather than ordinary wage rules.

Can domestic workers claim unpaid wages?

Yes, through civil remedies and, where applicable, minimum wage notifications; specific schemes may also help.

Can I approach the Delhi Commission for Women for workplace harassment?

Complaints can be made to appropriate bodies, but POSH Internal or Local Committees are the statutory route.

Do the Codes apply to IT companies?

Yes. The Codes and the Delhi Shops Act apply to IT and other commercial establishments as applicable.

Can I get both reinstatement and back wages?

Possible where termination is illegal, but tribunals often award compensation instead.

Should I sign a release to get my dues?

Only after checking that all dues are covered and paid; take advice on the terms.

Can statutory gratuity be reduced by settlement?

No. Statutory gratuity cannot be reduced below the legal entitlement by agreement.

Can a conciliation officer record my settlement?

Yes. Settlements in conciliation can be recorded, giving them statutory force.

Are delivery riders employees?

Usually engaged as partners, not employees, though the substance of control can matter.

Can gig workers get social security?

The Code on Social Security provides for welfare schemes and registration for gig and platform workers.

Can I file an FIR for unpaid salary?

Generally no, unless there are crimes like PF non-deposit, cheating, forgery or threats.

Is a fake job offer for money a crime?

Yes. Taking money for non-existent jobs can be cheating and should be reported to the police.

Can my employer make me sign a no-misconduct release?

You can refuse clauses that record misconduct you deny.

What if my employer pays after I sign but less than agreed?

Enforce the settlement; keep a copy and proof of the agreed amount.

Do I pay tax on settlement amounts?

Tax treatment depends on the nature of each payment; check with a tax adviser.

Can I challenge a settlement later?

Only on grounds like fraud, coercion or mistake; settlements are otherwise binding.

What if my employer is a foreign company with an office in Delhi?

Indian labour law applies to work performed here; contractual and jurisdiction clauses also matter.

Do employers need to restructure salaries under the Codes?

Many do, to comply with the uniform wage definition and the 50 per cent allowances rule.

Is a grievance redressal committee required?

Establishments with twenty or more workers must set one up under the rules.

How should an employer respond to an employee's legal notice?

With a factual reply, ideally through an advocate; Mara Vakil offers a paid reply service.

Do small Delhi shops need to follow the Shops Act?

After the 2026 amendment, it applies to establishments with twenty or more employees; others follow the Codes.

Can an employer delay salary due to cash flow problems?

No. Payment deadlines are statutory regardless of the employer's finances.

Can I claim salary for the notice period I served?

Yes. Salary for days actually worked during notice is wages and must be paid.

What if my offer letter promised a joining bonus I never got?

It is a contractual claim; demand it in writing and pursue legal remedies if refused.

Can my employer recover a joining bonus if I leave early?

Only if the contract provides for it, and only reasonable recovery.

Sources checked

Related

This page gives general information based on the sources listed, as checked on 18 October 2026. Labour Code rules and transition provisions are still being implemented; confirm the current position with an advocate before acting. Mara Vakil is a technology platform, not a law firm, and does not give legal advice. Read our disclaimer.

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