Notice Period - Company Policy

Respected All,
I have resign as per company policy and given one month notice period but company hold my two month salary June & July.
Resigned Date - 1st July 2014
Last Working Day - 30th July 2014
As of today i have completed 21 days of my notice but company hold my June month salary saying it will get clear in full and final settlement. as per my knowledge company can hold notice period salary only they suppose to pay me June salary..please suggest.
Ankush Patel.

Yes ethically and professionally the employer has to pay you the Salary within 7 days. Any other claim can be settled on FNF i.e. within 30 days of his/her last working day. But most of the companies hold the salary to penalize the employee for the best reason known to the HR of the said company.
Would request your good self that to send a letter to your HR Head duly acknowledged to release the June Salary as you have commitments to be fulfilled.

It is quite normal to hold the salary as soon as you serve the resignation notice and settle the same along with FnF.
Pon

It is actually logical, though not allowed as such under the act.
The employee needs to serve notice period. If he does not, then the employee should pay the notice pay. The chance of recovery from the employee is close to nil. So the company choses to hold back previous months salary so that they have something to recover the notice pay from.
Also they know that holding back previous months salary ensures that the employee will complete his terms of employment, including his notice period.
Though the act does not allow delay in payment of wages / salaries, the Original Poster can not be do anything about it. If he tries to take a legal stand, his relieving letter and BGV will be in danger.

Dear all,
Legally, employee is entitled to receive his wages / salary within seven days from the closing of wage period failing which action under the Payment of Wages Act can be initiated by the area Labour Inspector / Officer if the lapse is brought to their notice through a simple application. The punishment practically is minor for a company which is just Rs.1000/- for first offense.
The employer might has held the salary just to harass the employee and keep him under their clutches till the say of re-leaving.
P K Sharma