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Is your salary policy legally sound or just something you’ve always followed?
A trending content-to-commerce startup delayed paying its employees for two straight months. Despite promising to pay salaries at the start of June, employees were still waiting for their dues well into the second week. The reason? Internal restructuring and cash flow issues. But frustrated employees didn’t just sit back; they started preparing to file complaints under the Payment of Wages Act 1936.
This wasn’t a remote factory or cash-based business—it was a modern, VC-funded startup. Yet, it failed in one of the most basic responsibilities: paying employees on time. In fact, several team members had already begun exploring legal recourse. Delayed salaries don’t just disrupt monthly budgets, they break trust. When a company with millions in funding delays dues, it sends a loud message about misplaced priorities.
In this blog, we’ll explain:
If you’ve ever faced a delay in your salary or seen coworkers struggle to get their rightful pay—you’re not alone. Inconsistent or late wage payments aren’t just frustrating; they can lead to serious financial stress and legal disputes. That’s where the Payment of Wages Act 1936 steps in.
Introduced in pre-independence India, this law was designed to protect employees from unfair deductions and delayed payments. Almost 90 years later, its purpose remains relevant: ensuring that every employee is paid correctly, on time, and through transparent methods.
In 2025, with more digital payroll systems in place, some employers mistakenly assume compliance is automatic. But real-world scenarios like startups delaying salaries or informal employers cutting corners prove otherwise. This law remains the foundation for ethical and legal salary practices in India.
Just blindly following the law without actually applying it in practice is sheer ignorance. Simply knowing your legal duties isn’t enough, you have to act on them consistently and consciously.
Here’s how you can do it:
The incident was reported by major media outlets. Employees threatened to file formal complaints. The company initiated partial repayments, but damage to employee morale and brand reputation was already done.
Avoiding these mistakes isn’t optional. That’s why it’s so important for employers to take a hard look at whether their HR and payroll systems actually follow the law. If there are gaps, the smartest move is to work with experts who understand the rules and can guide you every step of the way and that’s where Vishaal Consultancy Services comes to your rescue.
Missing payday isn’t just bad management—it could land you in legal trouble. The Payment of Wages Act 1936 was built to make sure employees aren’t left waiting endlessly for what they’ve earned. And in today’s fast-paced work environment, respecting this law isn’t just about ticking a box it’s about building a workplace people can trust.
Not sure if your payroll process fully complies with the law? That’s where Vishaal Consultancy Services steps in. As a trusted payroll company in Bangalore and expert labour law consultants, we help businesses across industries simplify compliance—be it salary payment rules, deductions, or full-scale HR support.
Whether you’re fine-tuning your policies or starting from scratch, our payroll processing and outsourcing services ensure your systems stay legally sound and employee-friendly. Let’s take the stress out of compliance—get in touch with Vishaal Consultancy Services today
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