The grounds on which an employees' salary can be withheld (I'm looking for grounds that are permissible by law)

Good morning members,

I would like to know:

a) the grounds on which an employee's salary can be withheld (I'm looking for grounds that are permissible by law)
b) the maximum time for which it can be withheld
c) In such a situation, what kind of legal recourse does an employee have, if any?

Grateful for your inputs on the above.

Regards,

Michelle

Dear Michelle,

It appears that you are determined to withhold the salary of an employee. Since you are unable to find the grounds, you have approached this forum so that members can guide you with a list of the grounds.

In what capacity have you raised the post? Do you wish to withhold the salary of your employee, or are you the aggrieved employee whose salary is being withheld? If the former, then sorry, Michelle. Members of this forum are neutral and look at the situation objectively. For us, you and your employee are on equal footing. By providing you with the answers, we do not wish any injustice to take place against the employee.

Just because you have approached this forum and not your employee, the replies cannot be given that suit you or your interests.

If you perceive the action of an employee as misconduct, then write clearly what happened, when did it happen, the parties involved in the misconduct, what was the role of the HOD when the misconduct took place, etc. If the misconduct merits withholding the salary, then only you will be told under the provisions of which act or law it can be done so.

My reply may not be as per your expectation; however, we wish to give precedence to rationality over assistance.

Thanks,

Dinesh Divekar

Dear Dinesh,

I am the HR Manager in a private company, and I am in the process of drafting the company's HR policy. Therefore, I regularly post questions in the group to get guidance, especially on aspects that may have legal implications for the company and to ensure that our policies are drafted in a fair and transparent manner.

There have been requests from some of our HoDs to withhold the salary of a team member, but none have been due to any serious issues. So far, I have deflected such requests, but I feel the need to discuss this with the senior management and have a clear policy on it. My reason for posting in the group was to gather information to take to the management so that I can clearly inform them about the legality (or illegality) of this action and what recourse an employee can take in this regard.

Safeguarding company interests and employee rights are both equally important to me, personally and as an HR Manager, and I like to do my homework before I go before the management with any issue. I hope this clarifies the reason for my request.

Dear Michelle,

The relevant sentence of your second post is "There have been requests from some of our HoD's to withhold the salary of a team member." In that case, those HODs may be told that the provisions of the labor laws are not for satiating their whims and fancies.

Yes, if the employee commits misconduct, there is a provision for imposing a penalty. However, before awarding punishment, a domestic inquiry has to be conducted, the blameworthiness of the employee has to be established, and only then can a small percentage be imposed as a penalty.

Even if the employee abandons his/her duties, he/she remains eligible to draw the salary until his/her last working day.

However, there cannot be a definitive list of the grounds under which the salary of the employees can be withheld. Even if the employee is suspended, he/she becomes eligible to get a subsistence allowance.

Thanks,

Dinesh Divekar

Dear Dinesh,

Thank you - this is exactly what I wanted to know.

Regards,
Michelle

Dear Dinesh,

One last question - do India's labor laws differ from state to state or are they the same at the national level?

Dear Michelle,

Earlier, provisions of the Factories Act and the Shops and Establishment Act were the same for almost all states. However, in the last few years, the respective state governments have brought changes related to employee leave, hours of work, minimum strength for the retrenchment of workers, etc. There have not been many changes related to matters of discipline. It is advisable to follow the provisions of either act or the provisions of the Industrial Standing Orders Act of the respective state. However, a few states like Karnataka have suspended the provisions of this act for the IT industry.

Thanks,

Dinesh Divekar

Thank you for all your help. I look forward to your guidance in the future as well.

Request of such type is common by Sales Head. Mr. Dinesh, otherwise, has given you a reply that is lucid and covers all aspects. Withholding salary without a domestic inquiry is not legal.

Col. Rathi