'Non-Payment Of Salaries To Employees Violates Fundamental Rights Under Articles 14, 19(1)(g) & 21': Bombay High Court

The Bombay High Court has held that non-payment of salaries directly breaches the fundamental rights guaranteed to employees under Articles 14, 21 and 19(1)(g) of the Constitution. The Court observed that no institution can function in a manner prejudicial to or exploitative of its employees by withholding their salaries, which constitute their basic source of livelihood and survival.

A division bench of Justice G. S. Kulkarni and Justice Aarti Sathe was hearing a batch of petitions filed by teaching and non-teaching employees of the Sinhgad Technical Education Society (STES), along with contempt petitions alleging wilful disobedience of earlier court orders concerning payment of salaries.

The Court noted that several employees had approached it after remaining unpaid for a prolonged period. It prioritised petitions concerning employees whose salaries had not been paid for a long time, observing that the issue directly affected their livelihood.

The Court was informed that 19 writ petitions and connected contempt petitions concerned 772 former employees who had either resigned or been terminated, including 110 employees who were reportedly terminated. Approximately ₹21 crore was stated to be due to them. On behalf of STES, its counsel stated that the amounts would be disbursed by August 31, 2026.

Accepting the statement, the Court directed the society to file an undertaking by way of an affidavit confirming payment of the outstanding amounts to the 772 employees by the stipulated date.

Regarding employees still working with STES, whose salaries had allegedly remained unpaid for more than 22 months, the Court directed the Joint Director of Education to file an affidavit. The Court stated that it could not countenance a situation in which employees of educational institutions were required to spend their time in court struggling to receive their salaries. It observed that the proceedings were not ordinary litigation, as they concerned the livelihood of a large number of employees.

The Court also recorded the employees' submission that several staff members, including Class IV employees, had died by suicide because their salaries were not paid, and that criminal proceedings in this regard were stated to be pending.

“… we find that the issues raised herein are quite serious, as they directly touch the livelihood of a large number of employees who are working with the institution. We also deeply regret to note the petitioners' submission that many employees including Class IV employees have committed suicide…,” the Court remarked.

The Court emphasized that the present proceedings cannot be considered to be any ordinary proceedings, as the issues involved affect the livelihood of the employees of the institution. It highlighted that no institution can function in a manner which is prejudicial to the interest of its employees or exploitative of the employees by not paying salaries.

Reflecting on the constitutional implications of the issue, the Court observed:

“The non-payment of salaries is something which directly breaches the very basic fundamental rights guaranteed to the petitioners under Article 14 and 21 of the Constitution read with Article 19(1)(g) of the Constitution. No person or institution having regard to the rule of law, can so brazenly violate the rights of the employees in such a manner. This cannot be expected from any educational institution which is managing its affairs as per law.”

The Court listed the matters for further consideration.

Case Title: Sunetra Rajendra Pawar v. State of Maharashtra [Writ Petition No. 6521 of 2025] and connected matters