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Hi, I have resigned on 2 Dec, 2016 and serving a notice period as per company norms of 1 month, but company is holding salary for "November" as well. So please advise is this right? thanks Murari
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It is not legally correct to hold the November Salary as you have resigned before the release of Salary, please speak to the concerned HR and try to convince
If you think that the salary for the month of November has been delayed from the normal routine. The salary to others have been paid except you, then you need to talk to account section to know the reasons.
What it seems to me is that since you have given notice for one month starting from December 02, 2016, they may have an anticipation that if that you leave before completion of one month, they have a option of adjustment of your November salary against unserved period. It is better to talk to them to know their mind.
BS Kalsi,
Member Since August, 2011
Hi Murari, It is legally not correct to withheld your salary for the month of November. However, did you check with them for why were you not paid for the month of November?
What is the amount of full and final if I am having my EL/PL remaining with company. Is that decided on the bases of basic salary or complete salary same as before leaving.
Logically I think it should be complete salary instead of basic salary because when there is no leave balance with employees and the leave is taken, the company deducts the full day salary instead of basic.
Please help which is right as per labour laws?
Company retains one month salary for Full and Final settlement calculation.
At some company, this practice is followed. Please talk to concerned authority
for more clarification on Full and Final settlement.
Any company holding the previous month salary to check that the employee completes his/her notice is a wrong practice. The employee has worked for the entire month and is waiting for the salary, to pay his/her monthly bills and other liabilities which has been scheduled for.
The practice of holding back the previous months salary on resignation is wrong and a violation of the Payment of Wages Act. However, it is general practice. It also stems from the fact that the employees abscond after taking the salary and the company has nothing to use as leverage or recover from the employee.
If you want to make an issue, you can. There are procedure for it.
However, its better to manage your cash flow by other means, complete your clean exit and leave with good records to show to the next organisation you work for.
Holding salary of November is illegal. But since you have already tendered your resignation and serving notice period, it is better to wait for some time to and get your full and final settlement and have a smooth exist from the current company as already mentioned by some Ld. forum members herein above.
If the company does not clear your outstanding salary during full and final settlement or any other dues, then you should definitely think about taking legal help.
An employee who absconds after taking the salary will never tender his/her resignation. If the employee tenders resignation with good faith has to be honored and paid his/her last month salary as per my view.
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