Wage claim explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Two sets of rules in the Code on Wages (Gujarat) Rules, 2021 touch an employer directly when wages go wrong: the deposit of dues that could not be paid (rules 37 to 39), and the claim and appeal route (rules 40 and 41). The State Advisory Board (rules 19 to 36) is covered in brief at the end.
The rules are the Code on Wages (Gujarat) Rules, 2021, as notified on 5 October 2021 (No. KHR/2021/128/LVD/10/2020/555709/M(2)), in force from the date of commencement of the Code on Wages, 2019. Dues unpaid to the nominee for three months after death or unknown whereabouts go to the Labour Welfare Commissioner or Assistant Commissioner of Labour (rule 37). Other undisbursed dues are deposited before the expiry of the fifteenth day after the six-month period (rule 38). Unclaimed amounts are dealt with as the State Government directs after seven years (rule 39).
Later amendments and State notifications under these rules should be checked in the State Gazette.
Commencement and the Central rules
Rule 1(3) reads: "They shall come into force from the date of commencement of the code on wages, 2019." The four Labour Codes were brought into force from 21 November 2025. The Central rules on nomination and dues are in rule 45, on claims in rules 48 and 49 and on appeals in rule 50. Gujarat prints its own periods and authorities, set out below. If a wage dispute is already running, our legal dispute resolution team can advise on the route.
Undisbursed dues (rules 37 to 39)
| Situation | Rule | What the employer does | Period as printed | Authority |
|---|---|---|---|---|
| Amount due after the employee's death, or whereabouts not known, and the nominee could not be paid | 37 | Deposit the amount | After the expiry of three months from the date the amount became payable | Labour Welfare Commissioner / Assistant Commissioner of Labour having jurisdiction, who disburses to the nominee after ascertaining identity within two months of the deposit |
| Amount undisbursed because no nomination was made, or for any other reason the nominee could not be paid | 38(1) | Deposit the amount | Until the expiry of six months from the date the amount became payable; deposit before the expiry of the fifteenth day after the last day of that six-month period | Same authority |
| Mode of deposit | 38(2) | Bank transfer, or a crossed demand draft from a scheduled bank in India drawn in favour of the authority | Same authority |
Under rule 39, the deposited amount stays with the Labour Welfare Commissioner or Assistant Commissioner of Labour and is invested in Central or State Government securities or placed in a fixed deposit in a scheduled bank. The authority exhibits a notice with sufficient particulars on the notice board for at least fifteen days and publishes it in two newspapers circulating in the language commonly understood in the area where the wages were earned. If the nominee or another person claims the amount, the authority, after hearing and verifying the claim, releases it. If the amount remains unclaimed for seven years, it is dealt with as the State Government directs.
The single application for claims (rule 40)
A single application may be filed under section 45(5) with the documents specified in the Form. The Form printed for the single application is Form II (see rule 40). It is made before the authority appointed under section 45(1), through the employees concerned, a registered trade union or the Inspector-cum-Facilitator. The form lets the applicant claim, in one application, wages below the notified minimum rate, unpaid rest-day wages, unpaid overtime, wages not paid for a period, unauthorised deductions and unpaid minimum bonus, with an estimate of the value of relief sought.
Appeals (rule 41)
A person aggrieved by an order of the authority under section 45(2) may appeal to the appellate authority having jurisdiction under section 49(1), in the Form printed for appeals (Form III, see rule 41), with the documents specified there. Rule 41 prints no period of its own; the period for an appeal is the one the Code sets.
The State Advisory Board in brief (rules 19 to 36)
| Point | Rule | As printed |
|---|---|---|
| Composition | 19 | Four employer representatives and four employee representatives, plus independent persons: the Chairperson, one Member of Assembly, two professionals in wages and labour issues, and one member who is or has been presiding officer of an Industrial Tribunal; independent members not above one-third of the Board and one-third of the Board to be women |
| Meetings | 21, 22 | Chairperson may call a meeting at any time; on written requisition from not less than one half of the members, within thirty days. Notice by registered post and electronically at least fifteen days before, or seven days for an emergent meeting |
| Quorum | 24 | At least one-third of the members and at least one employer and one employee representative; an adjourned meeting within seven days may proceed whatever the number present |
| Term | 30 | Normally two years from appointment or nomination; members continue until a successor is appointed; all hold office during the pleasure of the State Government |
An employer is not directly bound by the Board's procedure, but representatives of employers nominated to it will find rules 19 to 36 the working code of the body.
A worked example
Saurashtra Spinning Mills Ltd in Rajkot has unpaid final dues of a worker who died, and no nominee can be paid for three months. Under rule 37, the mill deposits the amount with the Labour Welfare Commissioner or Assistant Commissioner of Labour having jurisdiction. If the worker had made no nomination at all, rule 38 applies: six months from the date the amount became payable, then the deposit before the fifteenth day after that period ends, by bank transfer or crossed demand draft.
Need help with a wage claim or appeal?
Where a worker, union or Inspector-cum-Facilitator has filed a single application, or an order is to be appealed, the steps and papers matter. Our legal dispute resolution team can review the application, the forms and the periods that apply to your case.
Key takeaways
- Undisbursed dues go to the Labour Welfare Commissioner or Assistant Commissioner of Labour by bank transfer or crossed demand draft.
- Rule 37 uses a three-month period after death or unknown whereabouts; rule 38 uses six months plus fifteen days.
- Unclaimed deposits are dealt with as the State Government directs after seven years.
- A single claim application is made in Form II; an appeal in Form III.
- The State Advisory Board has four employer and four employee representatives and a term of normally two years.
Read next
- Code on Wages (Gujarat) Rules, 2021: payment of wages, deductions, fines and advances
- Code on Wages (Gujarat) Rules, 2021: registers, wage slip, forms and returns
- Rule 54 of the Central Rules: manner of composition of offences
Disclaimer: Based on the State or Union territory rules named above, as notified under the Labour Codes and consulted on 4 October 2026. Later amendments, State notifications, fees and forms should be checked in the State Gazette and on the State labour department website. This article is general information, not legal advice; check the official text before acting.