Is It Fair for Companies to Withhold Last Month's Salary After Resignation? Seeking Advice

Salary Withholding and Notice Period Concerns

One of my colleagues resigned from his current job on 08-06-14 with a 15-day notice period, and he will work here until 24-06-14. Our Director is asking him to serve a notice period of 30 days and has also withheld his May month's salary. The Director states that it will be paid to him along with the Full & Final Payment.

I kindly request all of you to suggest whether this kind of last month's salary hold is justified or not. Does any company have the right to withhold the last month's salary on the behalf of resignation and Full & Final payment? Can my friend approach the labor department for justification since the Director is not listening to our HR?

Thanks & Regards,
Amit Kumar

As the Director of the company is above HR, his decision shall be final and binding. If you are knocking on the door of the Labour Department, it is of no use. However, as you are inviting suggestions from the HR members, please note my suggestion.

It is unfair and not justifiable to hold your colleague's May month's salary by your company. At the same time, your colleague has to serve the notice period as per his appointment letter. His salary for June could be paid after adjusting the balance notice period, if any, as applicable to him - as per his offer of appointment letter.

Thanks,
R K Nair

Yes, it is correct. For example, if you resign on the 25th of January, you will not receive a salary for that month. Considering that you have a notice period of 30 days, which would end on the 24th of February, you will receive your January salary, February salary, and any other pending amounts as a part of your FnF.

Hope this helps!

Dear Sir/Madam,

I resigned on 14-Sep-15 and served a full two-month notice period to the company until 14-Nov-15. I have been on the notice period for the required two full months as stipulated by the company.

Can the company withhold my salary for the month of Aug-2015? If the company states that I am released today, i.e., 17-Nov-15, am I entitled to claim my notice period salary?

How can I take legal action against the company?

Please reply to this email on an urgent basis.

Regards,

I resigned on 14-Sep-15 and served a full two-month notice period from 14-Sep-15 to 14-Nov-15. However, I have not received my salary for the month of Aug-2015. I just wanted to know if the company can hold the salary for the said period. Suppose the company states that I am released to go today, i.e., 17-Sep-15, would I be entitled to claim my notice period salary, which I served in full, by 14-Nov-15? Can I take legal action against the company? If so, how should I proceed, and what percentage of my salary can I expect to claim in court?

Regards,

The employee shall receive this month's salary and any other dues along with FnF. Additionally, he/she can also fill out the PF form after 45 days.

Thank you.