Dear Yeswanth,
Your query on "Negative Leave Balance" is intriguing. Let us consider two situation when salary is not paid:
a) Situation I: - Employee proceeds on leave without proper approval from the Manager/HOD. On return, if the absence is not regularised then (whether some additional punishment awarded or not), forfeits his/her pay. This deduction is on account of "Leave Without Pay" (LWP). HR department while processing monthly salary, deducts the salary for the absent days.
b) Situation II: - Employee has pressing personal/domestic commitments. Approval by the Manager/HOD is not a problem but he/she does not have balance leave. Against this backdrop, he/she applies for LWP. HR department while processing monthly salary, deducts the salary for the absent days.
In either situation, question of negative leave balance does not arise since the deductions owing to absence are made while processing the monthly salary. However, from your query, one gets a feeling that, you have maintained employee's leave account that is similar to Current Account that companies open with their bank. At times banks permit overdraft facility since it is a company account. Does your leave policy permits such overdraft of leave?
Thanks,
Dinesh Divekar
Hi Team,
Please clarify if there is a legal clause to withhold or deduct the salary of an employee if he/she resigns from the organization and is having negative leave balance at the time of relieving.
Thanks
Yeswanth[/QUOTE]