Shibani,
First, in either case you have mentioned, holding back salary is difficult. But again it depends in the size of the company. If its a small team with manual payroll, it's easy to,hold back or delay salary (and no police station will bother coming and asking you in any case why you didn't pay him salary. Let anyone challenge me on it)
If its a large comoany' this is more difficult.
Also when you process your payroll is important. I know smaller firms who delay payroll just so that someone will not be able to leave without notice without sacrificing 1/3 of salary.
There are companies where rule is to not give salary during notice period till full and final settlement. So lots of things depend on your company rules, hr / ir issues, etc.
In any case, you can hold back salary on suspicion for a few days. In the end you have to confront the person and deal with it. Remember once you hold back his salary, you have lost that employee anyway. He may in fact then try doing more damage on his way out. Consider that also
Looking forward to discussion on this and feedback from members on my points
From India, Mumbai
2383First, in either case you have mentioned, holding back salary is difficult. But again it depends in the size of the company. If its a small team with manual payroll, it's easy to,hold back or delay salary (and no police station will bother coming and asking you in any case why you didn't pay him salary. Let anyone challenge me on it)
If its a large comoany' this is more difficult.
Also when you process your payroll is important. I know smaller firms who delay payroll just so that someone will not be able to leave without notice without sacrificing 1/3 of salary.
There are companies where rule is to not give salary during notice period till full and final settlement. So lots of things depend on your company rules, hr / ir issues, etc.
In any case, you can hold back salary on suspicion for a few days. In the end you have to confront the person and deal with it. Remember once you hold back his salary, you have lost that employee anyway. He may in fact then try doing more damage on his way out. Consider that also
Looking forward to discussion on this and feedback from members on my points
From India, Mumbai
There are 2 dimensions to this
a)You want the employee to perform and be retained
b)It is punishment for non-performance and retention is not the motive
In such case you need to issue a fresh appointment letter where in such employees can be rechristened consultants with no leave or other company benefits.
Further ahead such employees could be given targets and their salaries revised with a Target achievement pay.
For eg if you pay an employee 40k you need to restructure his salary and make 25k incentive based.The performance parameters should be achievable and based on sound analysis or past records.
This has to be done in a calculated and well communicated manner.At the same time HR should start looking out for a replacement.
Stopping the salary is not criminal offence as per Indian Law as if the employee does file a police complaint the company can use it's imagination to get even.But it leaves a bad influence on other employees and eventually is counterproductive
From India, Mumbai
a)You want the employee to perform and be retained
b)It is punishment for non-performance and retention is not the motive
In such case you need to issue a fresh appointment letter where in such employees can be rechristened consultants with no leave or other company benefits.
Further ahead such employees could be given targets and their salaries revised with a Target achievement pay.
For eg if you pay an employee 40k you need to restructure his salary and make 25k incentive based.The performance parameters should be achievable and based on sound analysis or past records.
This has to be done in a calculated and well communicated manner.At the same time HR should start looking out for a replacement.
Stopping the salary is not criminal offence as per Indian Law as if the employee does file a police complaint the company can use it's imagination to get even.But it leaves a bad influence on other employees and eventually is counterproductive
From India, Mumbai
Hi Shivani,
Your query is very much genuine for one's knowledge,
As per my understanding it depends upon company's norms and policy. But whatever you do, it should be transparent to the employee also, that this is what you can do if person abscond or leave without informing, just in general way inform them how we use to give other information about the other policies.
It should not be a surprise to them. Sometimes even it happens once you inform them, it becomes a mutual agreement to relieve them, so just make it transparent....
I hope it will work for you........
And I have a very humble request to the people who replied on this thread, Kindly consider us as a learner, dont expect that we cant ask a simple query which is equally important. This forum gives us all the opportunity to sort and discuss our doubts and learn new things.
Regards,
Shalini
From India, Bangalore
Your query is very much genuine for one's knowledge,
As per my understanding it depends upon company's norms and policy. But whatever you do, it should be transparent to the employee also, that this is what you can do if person abscond or leave without informing, just in general way inform them how we use to give other information about the other policies.
It should not be a surprise to them. Sometimes even it happens once you inform them, it becomes a mutual agreement to relieve them, so just make it transparent....
I hope it will work for you........
And I have a very humble request to the people who replied on this thread, Kindly consider us as a learner, dont expect that we cant ask a simple query which is equally important. This forum gives us all the opportunity to sort and discuss our doubts and learn new things.
Regards,
Shalini
From India, Bangalore
Greetings,
I received this response from my mentor. Please consider his contribution as shared below:
1) As general rule, salary cannot be put on hold even if the reasons are genuine, sound and serious.
2) Employer's response to such objectionable reasons, legally, could be only way "punishment", "wage cut" or deduction/s from the wage. For deductions you have to refer to Payment of Wages Act 1936 wherein u/s 7 the permissible deduction and the process is stipulated. Sec. 4 mandates that no wage period can be more than 30 days. Sec. 5 states that the wage must be within seven days of he expiry period.
One could go on, but to professionally handle this matter, one would like to know:
1) The form of the organization.
2) Nature of Industry.
3) Total employment.
4) Are we talking about "workman" under Industrial Disputes Act 1947 or about any other category?
Answers to these and such questions will decide the approach to the problem stated by you.
However please note that employment being a contract, the relationship between the employer and
the employee is ALWAYS determined by the terms & conditions of employment, the law of the land and
any further contracts between the parties. None shall conduct out of the parameters of this situation.
From India, Mumbai
I received this response from my mentor. Please consider his contribution as shared below:
1) As general rule, salary cannot be put on hold even if the reasons are genuine, sound and serious.
2) Employer's response to such objectionable reasons, legally, could be only way "punishment", "wage cut" or deduction/s from the wage. For deductions you have to refer to Payment of Wages Act 1936 wherein u/s 7 the permissible deduction and the process is stipulated. Sec. 4 mandates that no wage period can be more than 30 days. Sec. 5 states that the wage must be within seven days of he expiry period.
One could go on, but to professionally handle this matter, one would like to know:
1) The form of the organization.
2) Nature of Industry.
3) Total employment.
4) Are we talking about "workman" under Industrial Disputes Act 1947 or about any other category?
Answers to these and such questions will decide the approach to the problem stated by you.
However please note that employment being a contract, the relationship between the employer and
the employee is ALWAYS determined by the terms & conditions of employment, the law of the land and
any further contracts between the parties. None shall conduct out of the parameters of this situation.
From India, Mumbai
Dear all,
As Shivani has quoted, I am also facing a similar kind of situation in my organization. One of our site employee was on leave for 15 days without any information . When HR and his HOD asked him regarding his such a long leave, he has given unacceptable answers that he was admitted in hospital when he was in his home town. After that we have asked him for original bills and documents to provide him mediclaim facility as per the company policy. He has refused to provide by saying he has no documents as such. On the very next day, he has joined our client's organization without any resignation from our company. Now we are forced to hold his salary, as we have major loss of 35 lacs on that particular site. He was on that construction site for last 1year and he has no records of the work done.
Kindly suggest, what wrong we have done by holding his salary? Hence as per my opinion, situation should be analysed first before holding any employee's salary.
Regards,
Amitav Nanda
From India, Gurgaon
As Shivani has quoted, I am also facing a similar kind of situation in my organization. One of our site employee was on leave for 15 days without any information . When HR and his HOD asked him regarding his such a long leave, he has given unacceptable answers that he was admitted in hospital when he was in his home town. After that we have asked him for original bills and documents to provide him mediclaim facility as per the company policy. He has refused to provide by saying he has no documents as such. On the very next day, he has joined our client's organization without any resignation from our company. Now we are forced to hold his salary, as we have major loss of 35 lacs on that particular site. He was on that construction site for last 1year and he has no records of the work done.
Kindly suggest, what wrong we have done by holding his salary? Hence as per my opinion, situation should be analysed first before holding any employee's salary.
Regards,
Amitav Nanda
From India, Gurgaon
Dear Shivani
I want to explain the following to you
1. Leave is not a right. It is a privilege given to an employee of that company.
2. Simply you cannot deny anyone's leave without any reason. But he can be denied his leave due to some auditing, inspection, or shortage of manpower due to other employees on leave.
3. Here you must check the following thing
(a) Leave available in his credit but not applied and proceeded for leave
(b) Leave not available in his credit but applied from future leave but not sanctioned and proceeded on leave
(c) Leave availale in his credit, applied for leave and not sanctioned due to any of the reason mentoned above.
(d) Leave not available in his credit, not applied and absconded without information.
4. You can withheld the salary of the employee untill his charge sheet trialled. During his trial period you can sanction some advance of pay on mercy grounds considering his family's livelihood.
5. If the employee's trial is completed after detailed enquiry, if the board of enquiry recommends for any major/minor punishment, it should be recorded and in the Brief Justification, Findings and recommendations and Trial papers the employee has to sign on the documents as read and understood and accepted the trial conducted against me for my offences. Then the HR Head must send a note with the details of punishment (in case any financial implications available) for its implementation, and a note for release of his salary. Then only his salary can be released.
6. If the employee has served with 3 such notices then also if he absconds now and then and for long duration, then after a summary trial he can be released from the company and in his service certificate / relieving certificate reason must be clearly mentioned as Long Absent (Last date of Attendance).
7. For such release you must pay him with Notice Pay, Retrenchment Compensation & Gratuity (If applicable and eligible), Leave Pay (whatever in his credit) and the Bonus for the period he has served (If eligible).
8. Once the absence period has been trialed and he has been awarded with some punishment, then he cannot be deducted with any number of days leave for any adjustment.
Hope I have cleared your doubts
Further in case if an employee made any loss or damage to any machinary, properties then his salary can be deducted upto the extend of the loss took place.
Any advance paid to him, can be deducted from his salary or from his final benefits.
He can be called after two months and instructed to fill his PF Claim (form 10C and Form 19) and you can further forward the same to PF Office for further release of his PF from EPFO.
As a HR you must be Human Resource as well as Humane Resource. You must have empathy not sympathy.
Wish you all the best.
From India, Kumbakonam
I want to explain the following to you
1. Leave is not a right. It is a privilege given to an employee of that company.
2. Simply you cannot deny anyone's leave without any reason. But he can be denied his leave due to some auditing, inspection, or shortage of manpower due to other employees on leave.
3. Here you must check the following thing
(a) Leave available in his credit but not applied and proceeded for leave
(b) Leave not available in his credit but applied from future leave but not sanctioned and proceeded on leave
(c) Leave availale in his credit, applied for leave and not sanctioned due to any of the reason mentoned above.
(d) Leave not available in his credit, not applied and absconded without information.
4. You can withheld the salary of the employee untill his charge sheet trialled. During his trial period you can sanction some advance of pay on mercy grounds considering his family's livelihood.
5. If the employee's trial is completed after detailed enquiry, if the board of enquiry recommends for any major/minor punishment, it should be recorded and in the Brief Justification, Findings and recommendations and Trial papers the employee has to sign on the documents as read and understood and accepted the trial conducted against me for my offences. Then the HR Head must send a note with the details of punishment (in case any financial implications available) for its implementation, and a note for release of his salary. Then only his salary can be released.
6. If the employee has served with 3 such notices then also if he absconds now and then and for long duration, then after a summary trial he can be released from the company and in his service certificate / relieving certificate reason must be clearly mentioned as Long Absent (Last date of Attendance).
7. For such release you must pay him with Notice Pay, Retrenchment Compensation & Gratuity (If applicable and eligible), Leave Pay (whatever in his credit) and the Bonus for the period he has served (If eligible).
8. Once the absence period has been trialed and he has been awarded with some punishment, then he cannot be deducted with any number of days leave for any adjustment.
Hope I have cleared your doubts
Further in case if an employee made any loss or damage to any machinary, properties then his salary can be deducted upto the extend of the loss took place.
Any advance paid to him, can be deducted from his salary or from his final benefits.
He can be called after two months and instructed to fill his PF Claim (form 10C and Form 19) and you can further forward the same to PF Office for further release of his PF from EPFO.
As a HR you must be Human Resource as well as Humane Resource. You must have empathy not sympathy.
Wish you all the best.
From India, Kumbakonam
The original querry was posted on holding back salary in suspicion that the employee will leave without notice. In your case, it's different. You are talking of someone who has left without notice. You are very much right in withholding his salary.
In fact, given the magnitude of loss, you can file a criminal complain with the police. His current employer will not like having someone with criminal case against him and also the investigation going on.
From India, Mumbai
In fact, given the magnitude of loss, you can file a criminal complain with the police. His current employer will not like having someone with criminal case against him and also the investigation going on.
From India, Mumbai
Dear Shivani,
You cannot hold the salary of an employee even knowing that he/she is going to resign.
You can certainly deduct and not hold the salary for absence from duty without prior information/permission.
S.K.Johri
From India, Delhi
You cannot hold the salary of an employee even knowing that he/she is going to resign.
You can certainly deduct and not hold the salary for absence from duty without prior information/permission.
S.K.Johri
From India, Delhi
My dear Nanda,
I have gone through your suggestion regarding withholding the salary of an employee.
The absence from duty is governed by the fact and law that he may be sanctioned leave and taken on duty if he/she explains to the satisfaction of the employer as to the valid reasons for his absence from duty without prior permission/information. In your case, once the employee did not satisfy the management on the above count, the management has rightly withheld the salary of the employee. It could rather deny the salary for the relevant period.
S.K.Johri
From India, Delhi
I have gone through your suggestion regarding withholding the salary of an employee.
The absence from duty is governed by the fact and law that he may be sanctioned leave and taken on duty if he/she explains to the satisfaction of the employer as to the valid reasons for his absence from duty without prior permission/information. In your case, once the employee did not satisfy the management on the above count, the management has rightly withheld the salary of the employee. It could rather deny the salary for the relevant period.
S.K.Johri
From India, Delhi
My dear Shivani,
The law governing absence from duty by an employee stipulates that if he/she explains to the satisfaction of the management the reason for the absence from duty one can be taken on duty by sanctioning the leave of the kind due also leave without pay else he management is within its right to deduct (not withhold) pay for the relevant period.
The pay cannot be refused/withheld for any apprhension but for violation of specific provisions of the conduct as prescribed in the Company's letter of appointment or code of conduct applicable on the employee.
S.K.Johri
From India, Delhi
The law governing absence from duty by an employee stipulates that if he/she explains to the satisfaction of the management the reason for the absence from duty one can be taken on duty by sanctioning the leave of the kind due also leave without pay else he management is within its right to deduct (not withhold) pay for the relevant period.
The pay cannot be refused/withheld for any apprhension but for violation of specific provisions of the conduct as prescribed in the Company's letter of appointment or code of conduct applicable on the employee.
S.K.Johri
From India, Delhi
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Salary on Hold.zip
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SALARY SHEET CALCULATION.xls