Can a Company Withhold Salary During Notice Period? Seeking HR Advice for Fair Solutions

Hello all, I am seeking some suggestions from seniors on the following matter. During the notice period, can a company hold an employee's salary? For example, if an employee has a notice period of two to three months and management informs the employee that they must serve the complete notice period, what should be the solution or practices that HR should suggest? These suggestions should be beneficial for both the employer and the employee.

Notice Period and Salary Settlement

Here are two cases that arise:

1. Notice Period is served by the employee. If an employee serves during the notice period, then their salary can be put on hold. However, within two months, you have to provide them with their money in full and final settlement.

If the employee does not serve the notice period, we can deduct the amount from their Full and Final settlement depending on the Terms & Conditions of the Appointment Letter. However, ESI contributions would be made in full until they are in the job.