Saswatabanerjee
Partner - Risk Management
Sushilkluthra@gmail.com
Consultant In Legal Matters
VOA51
Sr. Manager
+1 Other

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Dear Sir,
Please tell me maximum time a ltd. company listed in stock exchange can take for full and final settlement. Can salary be hold for the month for which employee has served full month and relieved in next month till the full and final settlement.
Please advise

You appear to work in Bombay, thus you are governed by Bombay Shops and Establishment Act. Under the Act, provisions of Payment of Wages Act are incorporated in it. As per section 5 of the later Act, upon termination, wages are payable before as second working day of termination.
Thanks
Sushil

And for all items other than wages, you are governed by the limit specified in payment of wages act, which provides for 30 day time limit. However, if your salary is above ₹18000 per month, then you are not covered by the act. So for payments other than the actual wages, the company is not subject to any directly enforceable time limit.
I have always had doubts about the legality of moves by the company to hold back pavements of salary during the notice period and paying it when the employee completes is notice period. Again, if you are outside the limits set in payment of wages act, The requirement that all wages and salaries has to be paid within seven days of the end of the month does not apply. I suspect, if you where to go to Court, The old will rule in your favour. However that is not a practical solution. So you can do nothing but wait for the end of your notice period and collect your salary for the notice days.

I wish to clarify that under section 38 of the Bombay Shops and Establishment Act, the opening words are "Notwithstanding anything contained in the Payment of wages Act... to any class of employees" shows that the said limit of Rs.18000 is not applicable to employees covered under the said Bombay Act.
Thanks and regards
Sushil

Dear,
At no point of time an employer can hold the salary of an employee who has already delivered the work. However, if any deduction to be done then it has be carried out in the F & F stage. For this reason only there is a check list called NDC `No Dues certificate' wherein the employee is cleared on full scrutinisation from each department. (in case of proper relieving)
On unauthorised absence or leaving the company without prior intimation, the company has to initiate a letter intimating his absence and to close his F&F without further delay.
Finally, on EL encashment, Bonus (if any) etc you can deduct the dues and close his exit.
I hope this would have cleared you partially
Jai Hind
Sathish G

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