Is it legal on employer’s part to hold employees salary?
I am currently associated with a small scale IT Company. Currently we are in process of regularizing our attendance and payroll cycle. Presently we are following an attendance cycle from 1st to 30th/31st of every month and salaries get credited on 1st of every month.
But now our management team is inclined to make changes in the attendance cycle from 25th to 24th of every month, stating accounts and HR could get time to process the salary inputs and then only salary can be credited on 1st of every month. But if we implement this cycle into our payroll system from next month onwards then 6/7 days salary of every existing employee will be on hold with company and can be cleared during his full and final settlement only.
Please let me know how legal this act would be, as company will take hold of employee salary for those days on which he has actually word for.
I am currently associated with a small scale IT Company. Currently we are in process of regularizing our attendance and payroll cycle. Presently we are following an attendance cycle from 1st to 30th/31st of every month and salaries get credited on 1st of every month.
But now our management team is inclined to make changes in the attendance cycle from 25th to 24th of every month, stating accounts and HR could get time to process the salary inputs and then only salary can be credited on 1st of every month. But if we implement this cycle into our payroll system from next month onwards then 6/7 days salary of every existing employee will be on hold with company and can be cleared during his full and final settlement only.
Please let me know how legal this act would be, as company will take hold of employee salary for those days on which he has actually word for.