I need to know if it is legal for any company to stop salary payment during notice period just because employee has resigned. The matter in question is about a Well known telecom software company in Bangalore who stops salary payment from the day the employee has resigned and settles it 1 month after last working day. Which essentially means that the employee is left with out a salary for 3 months since notice period is 2 months. Many employees have faced this situation and have suffered financial and emotional stress becasue of this policy, even senior managers are aware but do nothing about it. As per payment of wages act DELAY in payment can be only due to the following reason 1) Salary calculation was wrong 2)The parties involved in Executing the payment were not present (employee, employer) 3)Act of God where in business could not run as stipulated 4) Any involvement of a third party as a mediator which has failed the transaction 5) Absence - disqualifying payment inpart or whole ... Apart from this there is no provision for delaying or stopping payment because an employee has resigned.
This malpractice has to stop and hence I need advice from forum members on how to proceed as many of my colleagues are facing this situation. Members are requested to give legitimate advice and not suggestions.
This malpractice has to stop and hence I need advice from forum members on how to proceed as many of my colleagues are facing this situation. Members are requested to give legitimate advice and not suggestions.