I have a query about the salary of a terminated employee. When an employee is terminated without any notice or prior intimation, is it mandatory to release their salary immediately, i.e., on the day of termination itself? Or can we disburse the salary after a specific period, say after 30 days or 45 days, as per company procedure?
Which is the proper way? Kindly guide.
Regards
From India, Mumbai
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Which is the proper way? Kindly guide.
Regards
From India, Mumbai
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If the employee is terminated the Full and Final settlement has to be done immediately. The Salary cannot be prolonged to 30-45 days.
From India, Ahmadabad
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747From India, Ahmadabad
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Payment of Wages Act Compliance
The Payment of Wages Act specifies that the payment of wages for any employee who is terminated or has resigned must be made within 2 days from the last working day. Payments other than wages, such as gratuity and bonus, need to be given within 30 days. Therefore, you cannot withhold their wages. Your company policy is incorrect.
Regards
From India, Mumbai
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The Payment of Wages Act specifies that the payment of wages for any employee who is terminated or has resigned must be made within 2 days from the last working day. Payments other than wages, such as gratuity and bonus, need to be given within 30 days. Therefore, you cannot withhold their wages. Your company policy is incorrect.
Regards
From India, Mumbai
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Payment of wages GN.doc