Pay during Notice period - Is it legal to hold salary for 3 months? - CiteHR
Saswatabanerjee
Partner - Risk Management
Talentsorcerer
Talent Acquisition Expert
PTKSVEL
Manager (power Plant)
+1 Other

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Salary of employee is withheld and company says all salary dues will be settled during F&FS. This is acceptable for 1 months notice period.. If notice period is for 3 months and salary is with-held how can an employee survive without pay? Is it legal to hold salary for 3 months? in this case can a employee refuse to serve for 3 months notice period?
PTKSVEL: I think it's completely legal and will defer to other members of this forum to provide better insights on this. As a practice it is completely deplorable though and I'll urge an open contributory thread from most other members on how to structure an exit clause for employee/s.
No this is not legally tenable.
Payment of wages act specifies that payment of salary or wages must be for a wage period. Wage period can not exceed a month. Further that wages for the wage period should be paid by the 7th of the next month (10th for large units with more than 1000 workmen.
So, holding wages beyond the month is illegal.
Further, wages for the remaining period must be disbursed within 2 days from the last working day, and remaining payment must be made within 1 month from the last working day.
Where the wages are above ₹18,000 the employee is not covered under payment of wages act, and the above rules do no apply as such. However, in general, this rule applies on grounds of equity. In case of a complaint, the courts could very well impose such a rule is valid

The payday is mentioned in appointment letter,standing orders,(name of the state) Shops and Commercial Establishments Act too..................
There are various forms/registers that employer has to maintain and submit on payment of wages under enactments applicable to establishment e.g. (name of the state) Shops and Commercial Establishments rules..............that will prove default of the company....
You can approach Inspector appointed under (name of the state) Shops and Commercial Establishments Act , o/o Labor Commissioner, Employee's/Trade Unions, Grievance Redressal Committee, Works Committee....................
Submit a written representation addressed to Head-HR ,appointing authority,MD and let them reply whatever they want.....

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