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Michelle2022
Good morning members

I would like to know:

a) the grounds on which an employees' 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

From India, Delhi
Dinesh Divekar
7879

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 you are 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 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

From India, Bangalore
Michelle2022
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 HoD's 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 the senior management and have a clear policy on it.
My reason to posting in the group was to gather information to take to the management so that I can clearly inform them on the legality (or illegality) of this action and what recourse an employee can take in this regard.
Safeguarding company interest and employee rights are both equally important for 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

From India, Delhi
Dinesh Divekar
7879

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 that HODs may be told that the provisions of the labour laws are not for satiating their whims and fancies.

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

From India, Bangalore
Michelle2022
Dear Dinesh, Thank you -this is exactly what I wanted to know Regards Michelle
From India, Delhi
Michelle2022
Dear Dinesh, One last question - do India’s labour laws differ from state to state or same at the national level
From India, Delhi
Dinesh Divekar
7879

Dear Michelle,

Earlier, provisions of the Factories Act and the Shops and Establishment Act were the same for almost all the states. However, in the last few years, the respective state government have brought changes related to employee leave, hours of work, minimum strength for the retrenchment of the workers etc. But there are not many changes related to the matters of discipline. However, better to follow provisions of the 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

From India, Bangalore
Michelle2022
Thank you for all your help. I look forward to your guidance in the future as well
From India, Delhi
Suresh Rathi
89

Request of such type is common by Sales Head . Mr.Dinesh, otherwise has given you reply which is lucid and covers all aspects. Withholding salary without domestic inquiry is not legal Col.Rathi
From India, Delhi
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