Employee Returns After Two Years Asking for Unpaid Salary – Can We Legally Refuse Payment?

I would like to inquire about a situation involving an employee of our firm who has returned after two years to request his one-month salary. He worked with us for almost a year. Is there a legal way or rule that allows us to avoid payment, or would refusing to pay result in potential legal action from the labor department?

Looking forward to your guidance on this matter.

Thank you.

I don't understand your question. It would help if you shared the background as to why the last month's salary was not paid in the first place.

Thoughts on Salary Payment

If he has worked for that period, he should be paid for those days—nothing more, nothing less. Why would you not pay it? Has he done a proper handover at the time of leaving?

Ask yourself, what difference will this employee's salary of one month make to the balance sheet if paid? Is there some special benefit or savings that the organization is going to gain?

If there is a question of fraud, due to which you held back payment, hopefully, you documented it through inquiry and other legal processes.

If the employee absconded, I hope you followed the due legal process of termination, which is clearly documented. In this case, you can calculate the F&F settlement and adjust the salary against the notice period, if any, as per your organization's policy.

I wonder if the other employees think well of your organization when you indulge in such management practices. Overall, please understand that by trying to hold back salary payout unnecessarily, you are hurting your organization's brand image.

Regards,

Any unpaid salary or accumulations will be deposited with the appropriate authority (Labour Welfare Dept) after the prescribed time (2 or 3 years). We cannot hold any amount due to be paid to employees. Employees will claim the said amount from the appropriate authority.

Thanks,
RD Sharma

Please check your query first:

Important Query Regarding Employee Salary

"Important to ask that an employee of our firm came after two years to get his one-month salary. He worked with us for almost one year. Is there any way/legal rule to avoid him or to decline to pay, or will doing so create any legal action through the labour department?

Waiting to hear.

Thanks."

I am not denying the need to pay. If you do not want to pay him, then this is the legal position: the employer cannot withhold salary for anyone who worked with him in any capacity.

Regards.