Can We Legally Withhold Salary for Probationary Employee's Misconduct? Seeking Advice

Hi,

One of our newly hired employees has worked for only 22 days and has asked to leave the company due to serious misconduct and misbehavior. We have asked him to resign rather than terminating. Now, he is approaching us for his full and final settlement for the days worked. Would it be illegal to hold his salary even on the grounds of such gross misconduct? What do you suggest on moral grounds? (The employee was on a probation period.)

Regards,
SV

If you have a written warning letter for his serious misconduct, then you have a plus point, but this letter must be duly signed. If you have a letter, you have the option to state that the employee has misconducted in the company, and this is the reason for the salary hold. This letter is sufficient for the labor court for the salary hold.

By saying misconduct by you will not amount to be misconduct, there is a procedure for ensuring misconduct, and it is a very lengthy process. First, you have to issue a charge sheet, then conduct a domestic inquiry, and then proceed with termination if the charges are proved in the inquiry. Even after completing all the formalities of termination, you cannot withhold his salary.

In my view, do not go through all these procedures. If you do not like him, terminate his services, especially if he is still on probation, and pay him in full and final settlement. Do not withhold his dues; it is better to pay his dues even without resignation/termination. It is his salary, and you are bound to pay him.

Please let me know if you need further clarification or assistance.

Thank you.

As suggested by my friend Sharanfamana, it is absolutely not justified. There is a term called the principle of natural justice where the accused is given the opportunity to defend himself. You are saying that someone has committed misconduct, but you have to give him the chance to defend himself, which can be provided through a domestic inquiry. Even after conducting a domestic inquiry and finding him guilty, leading to the termination of his services, you cannot withhold his salary.

If somebody is found guilty of any misconduct, there are punishments defined in the certified standing orders.

Thank you.

Do not withhold his salary. Since he has worked for only 22 days (assuming he is on probation), terminate his employment and provide the notice pay and full and final settlement. It may be viewed as serious misconduct from your perspective. As described above by your knowledgeable members, you must give him the opportunity to defend himself by conducting a domestic enquiry.

He was a probationer, and during his very short stay, even as a probationer, he committed some grave misconduct, proving his unsuitability. At your instance, he gracefully submitted his resignation, fearing the otherwise ignominious exit of dismissal. There ends the matter. The unwanted or unsuitable employee was thus gotten rid of, and even after this, holding the salary for the days he worked is adding insult to injury. My suggestion, therefore, would be to leave the issue as graceful as it is rather than making it ugly. This is for the simple reason that probation does not prevent the due process of law from dealing with an erring employee.

Thank you.

Dear Reader,

Even in jail, an undertrial who works to earn his livelihood cannot be denied the wages he/she has actually earned through his/her labor. Therefore, any laborer or employee who has worked even a single day must be paid their earnings within the next 24 working days. If not, as an employer, you have committed a violation of the Payment of Wages Act.