Letter of Legal Action for not Paying Salary

There are usually two ways to leave an organization – either to give a month’s notice or to resign effective immediately. Professionally speaking, giving a month’s notice is preferred and is seen as giving due consideration. It allows the organization to find a replacement for the person leaving the job. This notice period also allows the employee to complete any on-going projects that are difficult to transfer to another employee in such a short time.

However, if for some reason you need to give immediate resignation, you may do so. The terms of resignation or termination are mentioned in the contracts. Generally, an employee has to forego the month’s pay if they resign immediately.

When an employee gives due notice to its employers, the employer is liable to clear the dues for the employee who has left the organization. There may be several reasons why a company may back out of such an obligation.

An employee leaving the organization must file for clearance certificate, return all items and equipment owned by the organization, hand over all internal files and documents, and clear all outstanding dues. If any of these is not done, the employer may withhold the final pay cheque.

Sometimes, even when an employee has completed all formalities of leaving an organization, the employer may for the wrong reasons withhold the final pay cheque. If this happens, the employer is at fault and must be liable to pay.

The employee can first communicate his/her grievances with the employer and if the matter is not resolved, he/she can take legal action by hiring a lawyer and serving notice to the employer. Such cases mostly arise in smaller organizations that believe they may be able to save money or get away without paying dues.

Suing a company for non-payment of salary is the legal right of the employee who has left the organization given the ex-employee has not been in breach of contract him/herself.

A sample letter

Subject: Notice of legal action for breach of contract

Dear Ms. Elizabeth,

I am writing to discuss my case regarding payment of final pay cheque. I resigned from the position of ________ with one month notice on July 29, 20xx. My resignation was accepted unconditionally. As per the organization policies, I obtained a clearance certificate and returned all property of the organization. However, when I went to claim my pay cheque, it was not ready, and I was asked to collect at a later date. Since then, I have made several visits to the accounts department, however, I still haven’t received my cheque.

Having fulfilled all legal obligations and given adequate time, I have now decided to take legal action against your company for breach of contract. You shall receive a legal notice from my lawyer within this week.

I hoped it would not come to this, but the organization’s failure to fulfill the terms of the contract has left me with no choice but to take legal action.


Samuel Davidson


Letter of Legal Action for not Paying Salary after Resignation

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