Ravi5554
Asst.manager -hr
NARASIMHAN TS
Independent Consultant Transportation Logistics

Hi, I wanted to know if we, as an employer can hold salary for a month after the employee resigns & completes the notice period?
An employee has resigned in Jan & served notice period completely, but we are planning to pay him his last month's salary(Jan's) after a month(in March) I wanted to know if it is legal.

From India
Dear Friend,
Please read the appointment letter issued by your company while your joining, may be they have mentioned separation clause, if they are not following separation clause then you are free to go for legally.

From India, Mumbai
Dear Anonymous
Normally the salary dues are settled within a month after a person leaves the organisation with proper notice. But at times in practice in several organizations, it takes extra time. Possibly due to errors in handing over /taking over of company property or charge or whatsoever.
In your company case you are taking a month or two extra and that can be explained as to why the delay. There is nothing legal or non-legal about this and if an employee questions legally utmost you might have to pay the interest thereon. But I see there is no problem at all. It is reconcilable.

From India, Tiruchirappalli
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