Legal Notice to Employer for Unpaid Salary, Gratuity, PF, Bonus and Full-and-Final Dues
Updated format for an employee to demand unpaid employment dues after resignation, retirement, termination or cessation of employment in India.
Law and links reviewed: 31 August 2026When can this legal notice be used?
An employee may use a written legal notice to demand amounts lawfully due from an employer, including salary arrears, contractual allowances, statutory bonus where applicable, gratuity, provident-fund contributions, eligible leave encashment and other amounts forming part of the employee's full-and-final settlement.
India's four Labour Codes were brought into force from 21 November 2025. Wage-related claims are now governed principally by the Code on Wages, 2019, while gratuity and other social-security matters are governed by the Code on Social Security, 2020, subject to applicable rules, notifications, transitional provisions and the jurisdiction of the appropriate Government.
Under the Code on Social Security, 2020, gratuity that has become payable is to be determined by the employer and paid within 30 days. Delay can attract statutory interest, subject to the conditions in the Code. Eligibility and calculation depend on the applicable statutory provisions and the facts of the employment.
- Salary / wages: claim unpaid earned wages and other admissible remuneration.
- Gratuity: claim statutory gratuity where the eligibility conditions are satisfied.
- Provident Fund: verify deposits in the EPFO passbook and lodge an EPFO grievance where contributions deducted or payable have not been deposited.
- Leave encashment: claim only where payable under the applicable law, service rules, award, settlement, appointment terms or company policy.
- Bonus / incentives: specify the contractual or statutory basis and the relevant period.
- TDS: verify tax-credit information on the Income Tax e-Filing portal and identify any mismatch between deductions and amounts reported or deposited.
Updated Legal Notice Format to Employer for Pending Dues
Replace the blanks and delete paragraphs that do not apply. The notice should accurately reflect the appointment terms, salary records, resignation/termination documents, payslips, attendance records, bank credits, PF records, tax records and correspondence available in the particular case.
Date: __________________
BY REGISTERED POST / SPEED POST / APPROVED ELECTRONIC MODE
To
M/s ______________________________
Registered / Principal Office: ______________________________
_______________________________________________
Through its Authorised Officer / HR Head
Subject: Legal notice demanding payment of ₹________ towards unpaid salary and other employment dues, together with applicable interest and costs.
Sir / Madam,
Under instructions from and on behalf of my client, Mr./Ms. ____________________, residing at ______________________________, I hereby serve upon you the following legal notice:
1. That my client was appointed by your establishment with effect from __________ as __________________, Employee ID __________, on the terms contained in the appointment letter / employment contract dated __________ and subsequent revisions, if any.
2. That my client performed the duties assigned during the period of employment and last held the designation of __________________. The last drawn salary / remuneration was ₹________ per month / annum, subject to the applicable salary structure.
3. That the employment came to an end on __________ by resignation / retirement / termination / expiry of contract / other reason: __________________. My client complied with the applicable notice-period and handover requirements, except to the extent waived, disputed or otherwise recorded in writing.
4. That despite cessation of employment and repeated requests dated __________, __________ and __________, the amounts lawfully payable to my client have not been fully released and/or properly accounted for.
5. That as on __________, the following amounts are claimed, subject to reconciliation with your payroll, statutory records and the applicable employment terms:
| Particulars | Period / Basis | Amount (₹) |
|---|---|---|
| Salary / wage arrears | ________________ | ________ |
| Allowances / reimbursements | ________________ | ________ |
| Bonus / incentive, if legally or contractually due | ________________ | ________ |
| Gratuity, if eligible | ________________ | ________ |
| Employee / employer PF contribution discrepancy, if any | ________________ | ________ |
| Leave encashment, if payable | ________________ | ________ |
| Other contractual / statutory dues | ________________ | ________ |
| Total amount presently claimed | ₹________ | |
6. That if tax was deducted from salary or any other payment, you are called upon to ensure that all legally required tax reporting, deposit and employee tax-credit information are correctly reflected for the relevant period under the tax law applicable to that period.
7. That if provident-fund contributions were deducted from my client's salary and/or were otherwise payable by the employer but are not reflected in the statutory account, you are called upon to deposit, reconcile and report the same in accordance with the applicable social-security law and EPFO requirements.
8. That if gratuity has become payable to my client, you are called upon to determine and release the correct gratuity together with statutory interest, where applicable, in accordance with the Code on Social Security, 2020 and the rules / notifications applicable to the establishment.
9. That my client has made repeated efforts to resolve the matter amicably. Copies of relevant correspondence, salary records, employment documents and statutory account extracts are available and shall be relied upon as necessary.
10. You are therefore called upon to pay ₹________, or such corrected amount as is found payable on reconciliation, together with contractual / statutory / otherwise legally recoverable interest, and to furnish a complete full-and-final settlement statement within 15 days from receipt of this notice.
11. In case of failure to comply, my client shall be at liberty to pursue the remedy available before the competent labour authority, statutory authority, tribunal or civil court, as applicable, including proceedings concerning wages, gratuity, provident fund and recovery of money, entirely at your risk as to lawful costs and consequences.
12. Where the claim satisfies the requirements of Order XXXVII of the Code of Civil Procedure, 1908, my client reserves the right to consider the summary procedure provided by that Order. Nothing in this notice shall be read as limiting any other remedy available in law.
A copy of this notice is retained for record and further proceedings.
Yours faithfully,
Advocate
Name: ___________________________
Enrolment No.: __________________
Address: ________________________
Contact: ________________________
What can an employee do if the employer does not pay?
1. Wage and employment-dues claim
Depending on the employee's status, establishment, location and nature of the claim, a wage or employment-dues claim may be pursued before the competent authority under the current Labour Codes or other forum having jurisdiction. The Ministry of Labour & Employment's SAMADHAN platform provides online facilities for employment-related disputes, claims and complaints.
2. Gratuity claim
The Code on Social Security, 2020 provides for determination and payment of gratuity and for adjudication by the competent authority where entitlement or amount is disputed. An employer is required to arrange payment within 30 days from the date gratuity becomes payable, subject to the statutory scheme.
3. PF deducted but not deposited
The employee should check the EPFO member passbook and, if necessary, lodge a grievance through EPFiGMS with supporting material such as payslips showing deduction. EPFO provides a statutory recovery and enforcement mechanism for provident-fund defaults.
4. TDS mismatch
Employees should verify their tax information through the official Income Tax e-Filing portal. The Income-tax Act, 2025 applies to Tax Year 2026-27 onwards, while earlier periods can continue to involve the repealed Income-tax Act, 1961 under the applicable transition provisions.
5. Civil recovery and Order XXXVII CPC
A civil recovery suit may be available where the dispute is maintainable before a civil court. The summary procedure under Order XXXVII CPC is not available merely because money is unpaid; the claim must fall within the categories covered by Order XXXVII, such as qualifying written contractual or other specified liabilities. Jurisdiction, limitation, court fee and the effect of any arbitration or exclusive-jurisdiction clause should be checked before filing.
Documents to keep ready
Keep the appointment letter and amendments, resignation / termination communication, proof of acceptance and last working day, salary slips, bank statements, attendance or work records where relevant, full-and-final statement, gratuity calculation, EPFO passbook, tax-credit information, emails and messages demanding payment, and proof of delivery of the legal notice.
Frequently asked questions
Is a legal notice compulsory before filing every employment claim?
Not in every case. The requirement depends on the statute, contract and remedy invoked. A written demand is nevertheless useful for identifying the amount claimed, creating a documentary record and giving the employer an opportunity to reconcile or pay the dues.
Is 15 days a mandatory legal period for payment?
No general rule makes 15 days mandatory for every employment-dues notice. It is commonly used as a reasonable demand period. A different period may apply under a contract, statute, rule or specific factual situation.
Can 18% annual interest always be demanded?
No. Interest should be based on an applicable statute, contract, established commercial arrangement or a rate that a competent court or authority can lawfully award. Gratuity has its own statutory interest provision for qualifying delayed payment.