Salary on Hold During Notice Period: Is This Allowed for PSU Employees?

Salary Withholding During Notice Period

After the resignation (during the notice period), when an employee is regularly performing their assigned job, the monthly salary and other allowances have been withheld for a PSU employee. Under which Government or Company rule is this possible? Who is authorized to hold the salary of an employee?

Under normal circumstances, it is not possible to hold the salary of any employee without a reason and without informing the employee of the employer's intention to do so. However, in the case of full and final settlement, it is permitted if provided in the Standing Orders of the establishment and if the person being relieved or going to be relieved has been in charge of any highly responsible position involving cash and other confidential dealings. It is always required to be clarified from the department itself.

Regards,
Madhu.T.K

I agree with Mr. Madhu's opinion. Such irregularities are unheard of in PSUs. However, in the case of resignation, depending on the date of cessation of service or other circumstances, the last month's salary may be withheld and paid along with the Final Payments, as the attendance data is not sent to Payroll (as salary and salary slip are not prepared) but to the Final Settlement section.

Warm regards.