Fired unfairly, salary or gratuity unpaid: what to do first

What has probably happened

One of these, or several at once:

• You were fired — by a letter, an email, a phone call, or by being told not to come in — with no notice, no reason, or a reason you think is false.
• You were made to resign. HR asked for a resignation letter "to keep your record clean".
• Your dues have not been paid. You left, or were let go, and the last month's salary, the notice pay, leave encashment or the full and final settlement (the last payment an employer makes when you leave) has not arrived.
• Your gratuity has not been paid. Gratuity is a lump sum the law makes an employer pay when you leave after at least five years of continuous service.

The law that protects you depends on who you are and what is owed. Getting that right first saves months.

Are you a "workman"?

The Industrial Disputes Act, 1947 gives strong protection, and a route to the Labour Court (a special court for disputes between workers and employers), but only to a workman. Section 2(s) defines a workman as anyone, including an apprentice, employed to do manual, unskilled, skilled, technical, operational, clerical or supervisory work for pay. It does not include anyone who is:

• employed mainly in a managerial or administrative capacity; or
• employed as a supervisor and either draws wages of more than ten thousand rupees a month, or does work that is mainly managerial;
• in the armed forces, the police, or employed in a prison.

So a factory hand, driver, clerk, nurse, technician, data-entry operator or salesperson is usually a workman. A branch manager or a department head usually is not. Courts have held that what you actually do every day counts, not your designation.

If you are a workman, the Industrial Disputes Act applies. If you are not, your rights come mainly from your appointment letter (your contract of employment) and the general law of contract, and the remedy is usually money, not getting your job back.

What to do, step by step

Step 1 — collect your papers (today). Your appointment letter and any later letters (confirmation, promotion, transfer); salary slips for the last several months; bank statements showing salary credits; the termination letter or email; your ID card and attendance records if you can get them; your PF number (UAN). If you were told on the phone, write down the date, the time and what was said.

Step 2 — do not sign anything new. Do not sign a resignation letter, a "voluntary" exit form or a full and final settlement you do not agree with. A signed paper is hard to undo later.

Step 3 — work out what is owed. Make a short list:

• salary for days worked and not paid;
• notice pay — the pay for the notice period in your appointment letter, if the employer did not give you that notice;
• leave encashment, if your terms provide for it;
• retrenchment compensation, if you are a workman with a year or more of continuous service and were let go for a reason other than punishment: Section 25F requires fifteen days' average pay for every completed year of service (or part of a year over six months), plus a month's notice or a month's wages instead;
• gratuity, if you completed five years: fifteen days' wages for every completed year (Section 4(2) of the Payment of Gratuity Act; the guide on gratuity claims shows how it is worked out).

Step 4 — ask in writing (week 1). Email HR, and the company's registered office if you can, listing what is owed and asking for payment by a date — seven to fifteen days is usual. Keep it calm and factual. This email becomes evidence.

Step 5 — send a legal notice if they ignore you (weeks 2 to 4). A legal notice is a formal letter, usually sent by an advocate, that sets out the facts, the law and what you demand — reinstatement, your dues, or both — and the time the employer has to reply. What it says can be used later in court, so it should be right the first time. See Wrongful termination notice.

Step 6 — choose the forum. If the notice does not settle it:

• A workman challenging the dismissal itself goes to the conciliation officer of the labour department, and from there, or directly after 45 days, to the Labour Court (Section 2A). The Labour Court can order reinstatement — your job back — with back wages, or other relief (Section 11A). The application to the Labour Court must be made within three years of the termination. See Labour Court application.
• A workman owed money that is already due, such as retrenchment compensation or arrears, can ask the Labour Court to work out the amount under Section 33C(2).
• Gratuity goes to the Controlling Authority under the Payment of Gratuity Act (Section 7). See Gratuity claim.
• PF goes to the EPFO. See PF stuck or not deposited.
• A manager or anyone who is not a workman usually claims damages for breach of contract in a civil court (Section 73 of the Indian Contract Act). See Appointment letter dispute.

Timeline and costs

When	What	Who pays
Day 1	Collect papers, list what is owed	—
Week 1	Email HR with the list	—
Weeks 2–4	Legal notice	The advocate's fee, which they quote first
After that	Conciliation, Labour Court, gratuity authority or civil court	Filing costs where any, and the advocate's fee for preparing the case and appearing where the law allows, quoted first
PF, at any time	Grievance to the EPFO	Free to lodge; or ₹999 with eMunshi to have it written for you

Documents to keep handy

• Appointment letter, confirmation letter and any revised terms.
• Salary slips and bank statements showing salary credits.
• The termination letter, email or message, and anything you sent in reply.
• ID card, attendance or punching records, emails showing your work.
• PF number (UAN) and passbook.
• Any show-cause notice, inquiry papers or warning letters.

Mistakes that sink people

• Signing a resignation when you were in fact dismissed. Resignation is treated very differently by the law.
• Accepting a settlement cheque without a written protest when the amount is short.
• Mixing all claims into one angry email. List each claim separately: salary, notice pay, compensation, gratuity, PF.
• Calling yourself a "manager" when you are not one, or the reverse. Describe what you actually do.
• Waiting for HR to "process" it for a year. Deadlines run regardless.

When you need an advocate

A dismissal case turns on facts — whether you are a workman, whether there was an inquiry, what your contract says — and on deadlines. An independent advocate from our panel can tell you which route fits and quote their fee before you pay. A 30-minute call starts at ₹999. eMunshi is a technology platform, not a law firm.