Understanding Salary Regulations and Compensation Guidelines

Dear All,

I am working with an Educational Company as AM-HR. I would like to take a suggestion from all of you. There is an employee in my company about whom I came to know that he is planning to leave the company; but if we ask him, he straightforwardly denies it. Now, it's the month-end, and we need to give the salaries. I have a full doubt that he will leave the company once he receives the salary. What should we do?

He is taking the classes and also taking care of the center; so if he leaves all at once, the center will be in trouble. What should I do? Please suggest.

Thank you.

Hi Priyanka,

Ethically, you have no right to stop the salary of the person if he has decided to leave your company; no one can have a hold on that. All you need to do is talk to the person, taking him into confidence. If he is not open to it, then let him submit his resignation. Before accepting his resignation, you can ask your management to sit with him, find out the reason for quitting, and address it. There could be a reason for that employee leaving your company, and if he is such an asset to your company, your company should take all possible measures to retain him.

Dear All,

I am working with an Educational Company as AM-HR. I would like to take a suggestion from all of you. There is an employee in my company about whom I came to know that he is planning to leave the company; but if we ask him, he is straightforwardly denying it. Now, it's the month end, and we need to give the salaries. I have full doubt that he'll leave the company once he gets the salary. So, what should we do?

He is taking the classes and also taking care of the center; so in case he leaves all at once, the center will be in trouble. What should I do? Please suggest.

Thank you.

Hi Priyanka,

Remember "No company should depend on employees, and employees should not depend on the company."

Do you have any HR policies in place, such as recruitment, appointment, PMS, or exit formalities? If so, you have to relieve him as per the notice period.

If not, take him for discussions, try to convince him to stay in the firm. You don't have the right to hold his salary as per the law.

Regards,
Shiv

Hi Priyanka,

I am totally agreeable with Shiva. You can try to delay him quitting the job by the official policies but not by stopping his salary. Speak with him, try to understand his problem, and if possible, solve and retain him. Otherwise, start looking for some other person immediately.

Thanks,
Uma.

Dear All,

Thank you very much for the prompt response. I agree with what you said; even I don't want to hold anyone's salary. I've tried to talk to the employee about the same, but he has denied that he's not planning to leave right now.

Secondly, what I believe is, in case he'll be leaving and joining somewhere else, the only reason behind that will be a salary increment that we cannot give him right now, as the current scenario is not so good. However, this is unprofessional on his end in case he leaves the company in the middle.

We do have an exit policy, according to which he has to serve a one-month notice period. But in case he denies to serve the period, is it ethical to take legal action against him?

Regards,
Priyanka

Please note that you cannot stop the salary of an employee even if you are aware that they are going to leave, until they formally tender their resignation. Once they resign, only then can you halt their salary and advise the accounts department for their full and final settlement.

Regarding retaining the employee, I agree with our friend's advice. You can, of course, in case of doubt, instruct the accounts department not to deposit his salary into the bank and instead make the payment in cash without the employee's knowledge. This may lead the employee to assume that his salary will be deposited on the 1st or 2nd, prompting him to resign on that day. You can then proceed with the process of full and final settlement thereafter.

SK

Hi Priyanka

please find my views in RED


I agree to what you said, even i don't want to hold anyone's salary. I've tried to talk to the employee about the same. But he has denied that he's not planning to leave right now. Trust Him!!!!!

Secondly, what I believe is in case he'll be leaving and joining somewhere else, then the only reason behind that will be salary increment; that we cannot give him right now, as the current scenario is not so good. Then try to hold him by giving some kind of Bonus, Reward or promotion, Job Enrichment, Increasing span of control.

But this is unprofessional at his end, in case he leaves the Company in the Middle. This is not at all unprofessional as he has full rights to think about his future.

We do have exit policy, according to which he has to serve 1 month's Notice Period, but in case; he denies to serve the Period; so is it ethical to take the legal action against him. There is no provision where in you can take some ethical action against him. He just needs to pay you 1 month’s salary and if he has accumulated some leaves he can get then adjusted in full n final of himself against the recovery.

Dear Priyanka,

You already know the cause of the problem - money! See if you can solve it by giving an increment to the employee. If not, then just let him go, and you look for someone else. There cannot be any other solution to this...

Hi Priyanka,

As everybody tells you, you cannot stop the salary of a person. First, you need to understand whether that person is an asset to your company. If yes, then you have to retain him, but you can't force him either. If he has been working in your firm for a long period, then you have an upper hand because he will definitely ask for an experience letter. Since your company has exit policies, you can indirectly suggest to him that if he leaves without any notice period, he will not receive an experience letter. Meanwhile, I suggest that you hire a new employee.

Regards,
Rahul

Better don't react when you have a clear mist around the issue, and don't think about stopping the salary because one thing you can't do that. Secondly, it's not fair. If you do that, then you are giving him a better reason to leave, right??!! :(

Make him understand that he has a good future with the company. Anyway, you can't give him a bonus or increments suddenly just because you doubt he is going to leave.

Dear Priyanka,

Please have a detailed discussion with him about how you found out he is leaving the job. If you have sufficient evidence, then show it to him and inquire about the current company issues so that you can help solve his problems.

You should communicate that we are not withholding your salary as the organization trusts you. If he has truly decided to leave, then ask him to stay for some time and train another person. What is your company's policy on employee resignations? If there is a one-month notice period, then he should stay for one month.

Best Regards,

Sajid Ansari
Delhi

Priyanka dear,

In my company, those who leave without completing the one-month notice period shall need to pay back one month's salary to the company. Make all things official so you can take action if they leave without proper documentation in place.

Priyanka takes his place and asks for double salary from the company. Also, "centre will be in trouble" doesn't make sense as if one person can make the business fail. So, take an assistant and train him/her for such problems. All the best.

Hi Priyanka,

As seniors have said, we cannot hold his salary until and unless we know the information officially. I would like to suggest here, why don't you talk with the employee personally? He might not be able to express his views openly. If he says yes when you meet personally, try to find out why he wants to leave (reasons). Let him give reasons point by point, not in a single line. At the same time, try to solve his problems as an employee. Leaving a skilled employee will affect the company for some time and may not affect it at all. But whatever the case may be, hold onto the employee if he is valuable to the company.

Priyanka,

My opinion is, let him go and see if you give a good increment. If he is not satisfied and even if he leaves, then what? Let new blood come in with more energy.

Regards,
S.V

Dear All,

I am working as an Executive HR in a private company in Bangalore. I am responsible for all recruitment activities. After conducting interviews, I usually inform the candidates that "we will call you back." In cases where a candidate is not suitable for the position, I am seeking advice on how to politely inform them that they have not been selected without causing any hurt feelings. Your suggestions are greatly appreciated, and I am eagerly awaiting your replies.

Thank you.

Hi Priyanka,

First of all, you should try to understand the problem behind his/her desire for a change. After that, attempt to persuade him/her. If they agree, that's great. If not, then you should consider finding a replacement. However, in the case of a salary hold, you cannot do so. Make their full and final settlement and adjust their notice period accordingly.

Rakesh Kashyap

Dear Anand,

You are absolutely right that after completing the interview, if a candidate is not selected, it is very difficult to say that we will call back to you. However, professionalism dictates that you cannot keep any ambiguity towards any applicant. If a candidate is not selected, then apologize to him and wish him the "best of good luck" for next time.

Rakesh Kashyap

Hi,

As per my knowledge, we can't stop any employee if he/she plans to leave the job. I guess you will be having some policy like he should serve a 1-month notice; let him do that, and by that time, you can look for some other options. By chance, if he leaves without notice, inform management, and after he gets his salary, please don't provide any certificate from the company stating he was an employee of your organization. That will really affect him, as company certificates matter a lot. But don't worry, no company is dependent on ONE EMPLOYEE only.

Regards, Ramya.R

Dear Priyanka,

You can hold his salary for the month against his 1-month notice period.

Regards,
Parvesh.

Dear Priyanka,

This employee of yours is in the process of getting a new job, but he has not yet received any confirmation from the other company he went for. So, this person will not say yes to you directly when you ask him about this matter. We have not yet overcome the recession period. As you are an AM-HR, I cannot suggest too much to you. I would only like you to rethink the work culture, salary reasons, and personal issues. You need to have a friendly and detailed chat with this employee on these different issues.

Hi Priyanka,

If he is not interested in continuing till the notice period, there will be a penalty clause as per your company's HR policy (such as paying back notice period salary, etc., to the company). You can check up and do that.

But let me tell you, this is all because of no second-line team development. You can expect this with any employee in any company. Nowadays, due to cost-cutting, many forget this and end up in soup.

Binu

It's good to be loyal to the company you are working for, but it should not lead to personal problems. Without any concrete proof, stopping salary cannot be justified anyway.

And remember the basic: "If an employer pays too high, the organization may flop; similarly, if an employee gets too low, he will look for a new employer." Just sit with a cup of coffee, think with a cool mind, and then decide.

Dear Priyanka,

As you know, the issue of integration is vital. I feel that the concerned employee is important for your organization. If possible, please ask him to wait for one to two months and explore the potential for an increase in his salary, as well as finding a suitable replacement.

Thank you.

I totally agree with Mr. Shiv. The employer has no right to stop any person from leaving the company or his according to the law. So the best way is negotiation and to follow your rules and regulations. If you go against the law tomorrow, you and management may face problems. Therefore, discuss with the top management and make the right decision.

Regards,
Ramanth G Naik

Regarding Salary,

Dear All,

I am working as an HR Executive in a service industry. Can anyone suggest to me what inputs are considered in salaries when we are determining the salary of employees? Also, please send me some attachment formats for this.

Regards,
Upendra

Dear Priyanka,

After all, the employee has worked in your institute, he has to get his pay. You should be bold and talk to him to address the rumors you have heard. If the employee is crucial, try to retain him but not against his will. Do not withhold anyone's salary; after all, he has worked and deserves to be paid. Keep in mind that you cannot stop a person from leaving.

Regards,
K. Venkatesh Prabhu

If the employee is not willing to serve the notice period as per the terms of his employment, then it cannot be termed as professionalism. Every employee has his/her responsibility, and it is his/her duty to serve the notice period. In most cases, relieving someone during the notice period or waiving off the notice period is at the discretion of the Management, and it is not his/her right. Acceptance of leaves in lieu of the notice period is also left to the management. If someone is not serving the notice period and runs away after getting his salary, it is just unprofessionalism that no employer will tolerate. If your employee is not serving the notice period and if you have this provision in the letter of appointment, you can very well institute legal action against such an employee.

Dear,

Though you have no right to stop anybody's salary, but as you mentioned, if he is determined to leave the company, he also cannot leave the company without prior notice and a reason for leaving the job. If he does so, you are free to deduct some amount or a percentage of salary as per the agreement signed by him at the time of joining. Furthermore, you can also stop all his incentives, compensation, and increments.

Thanks and regards,

Subhash Sharma
Manager P & A

Priyanka,

The attitude of the employer to see the employee as a slave and not support career growth elsewhere is a narrow-minded approach. Every employee will prioritize their own interests and will not work solely for the institute's benefit over their personal development.

Therefore, it is wise to attract and retain employees by offering competitive salaries. Employees may seek other opportunities if they discover that their current employer is paying below market rates for their role. To keep them engaged and committed to the company, it is essential to pay them at par with the current market standards.

Partho

Hi, all HR professionals,

I would like to mention that in my organization, gratuity is applicable. However, we are given a fresh contract for three years. If our service continues for more than 5 years, is gratuity applicable even if there is any break in service for a few days?

Please reply soon.

Thanks,
Firaque

Hi Priyanka,

When the employee approaches you for the relieving letter or experience letter, you can also ask him to serve his notice. In the meantime, you can fill his position either with a new applicant or someone from within the organization to take over his role.

I am certain that any employee who moves on to a different organization would require an experience letter and would adhere to the company policy.