Dear Sir/Madam,
Greetings for the day!
I have a query about the salary of the terminated employee. When an employee is terminated without any notice or prior intimation, is it mandatory to release his salary on an immediate basis, i.e., on the day of the termination itself? Or can we give the salary after a specific period, say after 30 days or 45 days as per company procedure?
Which is the proper way? Kindly guide.
From India, Mumbai
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Greetings for the day!
I have a query about the salary of the terminated employee. When an employee is terminated without any notice or prior intimation, is it mandatory to release his salary on an immediate basis, i.e., on the day of the termination itself? Or can we give the salary after a specific period, say after 30 days or 45 days as per company procedure?
Which is the proper way? Kindly guide.
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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The Payment of Wages Act specifies that the payment of wages for any employee who is terminated or has resigned has to be paid within 2 days from the last working day. Payment other than wages needs to be given within 30 days (e.g., gratuity, bonus). So you cannot hold on to his wages. Your company policy is wrong.
From India, Mumbai
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From India, Mumbai
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PAYMENT OF WAGES ACT 2009.doc