How to Handle Salary Hold for New Employee on Long Leave Without Risking Absconding?

Employee Leave and Salary Hold Situation

I have a situation in my office where an employee who joined 2 months ago went on a long leave of 1 month due to his mother's illness. We put his last month's salary on hold because we were unsure whether he would return. Now, the employee has returned and is requesting his salary, which was on hold. Although we are willing to pay the salary, is there any way we can ensure that after receiving the salary, the employee will not abscond?

Look forward to your suggestions.

Regards,
Ruchi

Concerns about withholding salary

When an employee availed of a long one-month leave, you had distrust upon his resumption of duties, so you withheld his salary. However, your action does not have sanction under the provisions of the Payment of Wages Act. Now, you are distrusting again because once the salary is disbursed, he might run away. But then the question arises as to how long you would like to withhold the salary?

Leaving aside the withholding of salary, some companies go further and retain one month's salary with them. But then, does it mean that employees do not abscond? Those who want to abscond do it anyway. They rationalize and forego their one month's salary.

Though you have written about the "employee," overall, your post gives the impression that you are dealing with an office boy or someone of equivalent status. The root cause of your problem is the inability to create an atmosphere of trust. This appears to be the larger issue in your company.

Thanks,
Dinesh Divekar

Most of the companies have PL's which are stored in the employee's account. Otherwise, the company will have a 15-day notice period to recover the salary that was released.

You can also initiate a recovery letter along with an absconding letter and proceed legally against the associate.

Dear Ruchi,

Within two months of joining, normal leave rules don't permit paid leave. At the most, because of genuine grounds for his absence, you may consider this period as 'Leave without pay'. If you want to be generous (I won't advise as it would set a bad precedent), you may consider paying this later, say after six months, to dispel your apprehension that he would leave after pocketing this withheld salary.

Regards,
Vinayak Nagarkar
HR Consultant

Addressing Employee Salary Withholding Concerns

Holding the salary is not a solution for the issue you raised. The employee can abscond at any time after receiving their salary, whether it be this month or next month. How long will you continue to withhold the salary to retain the employee?

Find out the reason(s) for such behavior.

You are aware that holding the salary is illegal and immoral. If you don't pay them, how will they survive and come to the office?

The employee has the right to choose to continue working or not; it is their discretion. You have the authority to take suitable action, so take it.

You must pay the salary.

Warm regards,
Bharat Gera
HR Consultant
[Phone Number Removed For Privacy-Reasons]

Dear colleague,

I respectfully disagree with this view. When the employee is not on paid leave, where is the question of paying him a salary? In the first place, he is not entitled to it. "Withholding of salary" is a wrongly used phrase. Therefore, in my view, no illegality is committed, and there is nothing immoral about it.

Regards,
Vinayak Nagarkar
HR Consultant

Dear All,

Thank you very much for your kind suggestions. However, the employee has now rejoined, even though he was on leave without pay as he didn't have any leave balance in his account. We processed the rest of his salary on the day of his rejoining after discussing with him, and he expressed his willingness to continue his services.

Please provide any further suggestions.

Regards,
Ruchi