Is It Common for IT Companies to Hold Salaries During Notice Periods? Let's Discuss!

Recently, I have come across such a message while interviewing candidates and sending them an offer—their present organization will put their salary on hold during the 2-month notice period that they will be serving.

So they would not resign in the middle of the month as that would make them go without salary for 3 months. Can anyone please throw light on what is the prevalent practice in the IT industry?

A separation from the company and the disbursement of the monthly salary are two independent things. There was no need to link them. Whether an employee resigns from the job or not, the monthly salary has to be paid by the due date.

However, this could be a company-specific decision. By making a generalization, it cannot be applied at the industry level. Specific companies might have faced issues from resigning employees such as incomplete handover or data destruction during separation. Despite being illegal, companies could be using salary withholding as a deterrent.

Thanks,

Dinesh Divekar