Salary Hold Of New Joinees - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management
Jeevarathnam
Sr. Manager Hr/admin
Gannahope
Deputy Commissioner Of Labour..a.p.
Riteshmaity
Labour Law Advocate

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Can any employer hold salary of 15days of a new joinee for 6 months and then release it? Is it legal in India?
What for you are holding? It is not legal to hold the salary of the employees
Sir I am working in BPO. to control the attrition my employer hold the salary because many candidates get absconding after training. Employer release the salary after completion of 6 months but if anybody gets absconding then that employee does not get the salary which is kept on hold.Is it legal?
also now my employer is thinking of not releasing the salary of those employees whom we are terminating on the non performance grounds. Is it legal? Can any employer hold or do not release salary if employee gets terminated for not performing?
Sir I am working in BPO. to control the attrition my employer hold the salary because many candidates get absconding after training. Employer release the salary after completion of 6 months but if anybody gets absconding then that employee does not get the salary which is kept on hold.Is it legal?
Kindly guide me on this.
Thank You

Sir I am working in BPO. to control the attrition my employer hold the salary because many candidates get absconding after training. Employer release the salary after completion of 6 months but if anybody gets absconding then that employee does not get the salary which is kept on hold.Is it legal?
also now my employer is thinking of not releasing the salary of those employees whom we are terminating on the non performance grounds. Is it legal? Can any employer hold or do not release salary if employee gets terminated for not performing?
Kindly guide me on this.
Thank You

Dear friend,

The paragraph-wise replies are as below:

Sir I am working in BPO. to control the attrition my employer hold the salary because many candidates get absconding after training. Employer release the salary after completion of 6 months but if anybody gets absconding then that employee does not get the salary which is kept on hold.Is it legal?

Comments: - Is the salary paid every month or not? Is it paid at the end of the six months? If at the end of the six months then it is illegal. You may approach Labour Officer (LO) of your area to non-payment of wages.

also now my employer is thinking of not releasing the salary of those employees whom we are terminating on the non performance grounds. Is it legal? Can any employer hold or do not release salary if employee gets terminated for not performing?

Comments: - It is mandatory to pay the salary till the Last Working Day (LWD) of each employee. Under-performance cannot be the ground for non-payment of the wages. Apprise your management the provisions of Shops and Establishment Act of your state. If some employee reports to the LO, then tell your employer that LO takes stern view of this.

Final Comments: - The problem with the BPO sector is that they live in ivory tower. They think that they are above the labour laws. The second problem is that the employers are also ignorant of the basics of the labour laws. Generally their adviser on labour matters is their Chartered Accountant (CA). Not necessarily all the CAs are perfect in labour laws but they just pretend to be to retain their client.

Thanks,

Dinesh Divekar

Business Mentor, Consultant and Trainer


What ever you are telling is illegal. There are many other retention strategies. Better to follow those strategies rather than holding the salary
Ok
ON THE FACE OF IT IT LOOKS ILLEGAL ON GROUND OF NATURAL JUSTICE.....
BUT RECENT JUDGEMENTS FAVOURED THE EMPLOYERS 'PRECAUTIONS. AS LEGAL....
THERE IS A SAYING....SALARY PAYER SHOULD TRY TO KEEP HIS EMPLOYEES AS PER COMPANY WORK MANUAL..
IF ANY DISOBEYS LOOSES HIS RIGHTS....
THIS IS THE LAW OF LAND..
SERIOUS VIOLATIONS SHOULD ALWAYS DEALT BY LABOUR LAWS...
BUT TRAINING PERIODS...AND DISCIPLINE...MISCONDUCT....ARE GOTHROUGH BY INDIVIDUAL COMPANYSWORK MANUALS ONLY....

It is illegal to hold salary especially if the salary is withheld only to stop the employee from leaving the service. Moreover, employer can not refuse to pay the 15 days salary when the service of the employee is terminated.

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