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My company has stopped paying me on time. Can I sue?

It is possible to take legal action against your employer to recover the payments due to you and receive damages for the losses you may have suffered from their lack of payment. Additionally, you may also refuse to continue working.

Whether you are under an employment contract or a letter of appointment, payment of your wages should be stated clearly in the document. The company’s non-payment may be seen as a repudiation of the contract – meaning they are not honouring their contractual obligations.

Once you make acceptance of such repudiation to your company, you can take the position that you are no longer obligated to work for them. Then, you can still sue for wages earned before the repudiation occurred.

Alternatively, you can affirm the contract. This means you show an intention to continue with the contract despite the breach, but your right to claim damages remains. All these claims require legal action, which may not be practical as the costs of legal proceedings are usually higher than the amount owed.