Can We Legally Withhold Salary if an Employee Wants to Shorten Their Notice Period?

Hi,

One of my employees sent his resignation on the 6th of January and is supposed to serve a 2-month notice period. However, he is willing to serve only 1 month. Can we withhold his entire 2 months' salary until the full and final settlement? We will release it only after he completes the 2 months' notice period.

Will this be okay? Are there any potential legal consequences?

Regards, Resmi G

Dear Resmi,

What is the effective date mentioned in his resignation letter? Is it after the one-month period he is ready to serve, or is it a buy-out situation? In any case, it is not legally correct on your part to withhold two months' salary.