Hi,
I worked as an employee of an IT company. I resigned from there and left the company. However, they stopped my last month's salary. I have received my salary slip, where they have deducted my PF and income tax. Please advise me if there is any legal recourse available for this situation. How can a company withhold salary even after deducting PF and tax? Is it legal for the company to engage in this practice? Please advise me legally.
From India, Mumbai
I worked as an employee of an IT company. I resigned from there and left the company. However, they stopped my last month's salary. I have received my salary slip, where they have deducted my PF and income tax. Please advise me if there is any legal recourse available for this situation. How can a company withhold salary even after deducting PF and tax? Is it legal for the company to engage in this practice? Please advise me legally.
From India, Mumbai
Dear Deepak,
As per HR policy, when you are given the notice period or serving the notice period, in that particular month, the company won't deduct any PF, insurance, IT, or RDS. So, you should ask the HR department immediately and ensure you receive your full salary. Remember, you have the right to inquire about this.
Regards,
Lakshmanan M
99418-39390
Eminent Solution
From India, Madras
As per HR policy, when you are given the notice period or serving the notice period, in that particular month, the company won't deduct any PF, insurance, IT, or RDS. So, you should ask the HR department immediately and ensure you receive your full salary. Remember, you have the right to inquire about this.
Regards,
Lakshmanan M
99418-39390
Eminent Solution
From India, Madras
Thank you, Laxman. However, I have not received any salary for the month, even though it has been deducted from the salary slip. I have proof of last month's salary slip. Please let me know if there is any legal recourse available for this.
From India, Mumbai
From India, Mumbai
dear yes if ,there is legal action for this . you can file a case under payment of wages act 1936 section 15(3) for delayed payment. tks j s malik
From India, Delhi
From India, Delhi
Dear Deepak,
There is a possibility to pay your salary for that month with the Full & Final settlement. In case you have not received your salary, you can ask the HR department how they have calculated your F & F settlement. If you do not receive any satisfactory answer, you can consider taking legal action. However, my suggestion to you is to please wait and be patient.
Best regards,
Gyan
From India, New Delhi
There is a possibility to pay your salary for that month with the Full & Final settlement. In case you have not received your salary, you can ask the HR department how they have calculated your F & F settlement. If you do not receive any satisfactory answer, you can consider taking legal action. However, my suggestion to you is to please wait and be patient.
Best regards,
Gyan
From India, New Delhi
Dear Deepak,
While joining, if you signed any HR rules or policy of the company stating that "you have to repay your last month's salary when you resign" or something related to that, then you can't.
Check the copy of the HR policy or rules that you have signed before. If such words are not found, check with the HR department first. If they are not responding correctly, you can file a case for the delay as per Mr. Malik's advice.
Hope I'm right.
Aj
From India, Madras
While joining, if you signed any HR rules or policy of the company stating that "you have to repay your last month's salary when you resign" or something related to that, then you can't.
Check the copy of the HR policy or rules that you have signed before. If such words are not found, check with the HR department first. If they are not responding correctly, you can file a case for the delay as per Mr. Malik's advice.
Hope I'm right.
Aj
From India, Madras
Dear Deepak,
Gyan is absolutely right. You shall get your salary after your Full & Final Settlement. Generally, companies take about 30 to 45 days (after your Last Working Day) to process F&F. If it has been more than 45 days, then you could first of all approach your HR person and ask about the details. I don't think that your company would have intentions to stop your salary. I feel it's just a process flaw or a delay in the compilation. So, I would advise you to be patient.
Regards,
CB
From India, Delhi
Gyan is absolutely right. You shall get your salary after your Full & Final Settlement. Generally, companies take about 30 to 45 days (after your Last Working Day) to process F&F. If it has been more than 45 days, then you could first of all approach your HR person and ask about the details. I don't think that your company would have intentions to stop your salary. I feel it's just a process flaw or a delay in the compilation. So, I would advise you to be patient.
Regards,
CB
From India, Delhi
Hi Lakshmanan,
Even I would like to know the law as per which a company should not deduct for any PF, insurance, IT, etc., in the last month (that is, the month considered as the notice period) of an employee. I have never heard of it. Is there really a law for this?
Regards,
Peonka
From India, Delhi
Even I would like to know the law as per which a company should not deduct for any PF, insurance, IT, etc., in the last month (that is, the month considered as the notice period) of an employee. I have never heard of it. Is there really a law for this?
Regards,
Peonka
From India, Delhi
Dear Deepak,
Don't get confused, my points are:
1. Have you submitted your resignation to the management? If so, please check with HR whether they have received it or not. If they have received it, they won't process your salary; they will only do the Full and Final settlement.
2. When you mention "Received your Salary slip," are you referring to personally collecting the slip from the company or receiving it by courier/post?
3. Have you followed the Company's Notice Pay guidelines as per your appointment order? Please check your appointment order now.
Regards,
Sekar Devaraj
From United States, Morristown
Don't get confused, my points are:
1. Have you submitted your resignation to the management? If so, please check with HR whether they have received it or not. If they have received it, they won't process your salary; they will only do the Full and Final settlement.
2. When you mention "Received your Salary slip," are you referring to personally collecting the slip from the company or receiving it by courier/post?
3. Have you followed the Company's Notice Pay guidelines as per your appointment order? Please check your appointment order now.
Regards,
Sekar Devaraj
From United States, Morristown
check your HR Policy and then take decision according to that If you had any policy regarding notice payment act according to that
From India, Pondicherry
From India, Pondicherry
No, I don't think there will be any legal compliance in your matter. I suggest you please wait for some time; they will release your salary soon because no company can stop the salary of a former employee after all deductions. Therefore, you may contact your HR Head and ask for the same. I hope you will receive a positive reply in this regard.
Shikha Mittal

From India, New Delhi
Shikha Mittal
From India, New Delhi
Hi,
Holding last month's salary is a general practice followed by all companies to safeguard the company's interests against any possible recovery from the resigned employee, which may arise at the time of full and final settlement. However, it is ensured that everything due to the employee is paid at the time of final settlement, including the last month's salary.
Regarding statutory deductions like PF/ESI, they will be deducted as usual because the employer is responsible for their deduction and deposit.
Best Regards,
Rajendra
Holding last month's salary is a general practice followed by all companies to safeguard the company's interests against any possible recovery from the resigned employee, which may arise at the time of full and final settlement. However, it is ensured that everything due to the employee is paid at the time of final settlement, including the last month's salary.
Regarding statutory deductions like PF/ESI, they will be deducted as usual because the employer is responsible for their deduction and deposit.
Best Regards,
Rajendra
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