Queries
Hi All,
If an employee is serving 3 moths notice period then as per the company policy the full & final settlement will be done only on last working day, which include three months salary. Is it legal to hold an employee full salary for 3 months during the notice period?
Thanks
Sumathi PK
18th March 2014 From India, Chennai

PARTICIPATING IN DISCUSSION:
Pranab.kumar
Administration & Hr
+2 Others

It is not legal to hold the salary for 3 months, the monthly salary has to be paid within 7 working days from the last date of the month. The FNF has to be settled within 30 days from the last working days i.e. apart from the salary e.g. PL encashment, Gratuity etc. If in case of termination from the employer the salary has to be paid within 24 hours of the termination and FNF within 3 working days.
19th March 2014 From India, Ahmadabad

Dear Saji, My question to you is, what legal action can one take if the employer refuses to pay the last salary of an employee after terminating the service on performance basis. Thank you, AK
20th March 2014 From India, Mumbai

It is always preferred to start a new thread for each fresh query as it will be difficult to reply as we have to quote the query every now and then for each reply. With regards to your query, if the salary is purely based on performance and even after show cause notice the employee has not given a heed to the employers notice the employer has the full right to terminate the employee or the services for business loss. No employer will give salary to any employee for sitting idle. For termination and holding the salary the employer should have strong evidence, since if the employee go legal they have to suffice the legal requirement for holding the salary. The employee can always knock the court of law for his/her salary, but it is advisable that one should take it as a last step, if there is no other solution to sort out the issues amicably
20th March 2014 From India, Ahmadabad

Dear Sumathi,
Salary is the birth right of an employee for his service towards to the organisation. He/she can not be deprived of this basic right.
However you can take the help of Retd Additional Commissioner of Labour Mr. Umakantah M
Warm regrds,
Pranab Chaklraborty
9404384433
20th March 2014 From India, Mumbai

Hi Saji & Pranab,
Thank you for the reply.
It is not legal to hold the salary for 3 months & Salary is the birth right but still companies executing these polices. It is hard for people to serve 3 month notice period without salary, mainly when the family is totally depend on one person salary and have commitments like housing loan, car loan etc.
Holding the salary for 3 months is to avoid employee resignations, it is wrong HR policy execution. If company has right to terminate employee then employee has all the rights to resign.
Definitely definitely illegal, action against humanity, against employee basic right, wrong employer ethics.
Thanks
Sumathi P K
30th March 2014 From India, Chennai

Unprofessional companies execute this type of policy i.e. holding the salary to avoid resignation, this shows that company does not have an employee data bank and the environment is such that candidates does not prefer to join this type of companies.
You can approach the HR and the top management to release the salary, or else you will be forced to go legal which is the last source.
31st March 2014 From India, Ahmadabad

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