Anonymous
Thanks a lot for your guidance Sir..... But just wanted to ask a query that is it mentioned in any Law or Act that employer can’t hold salary for any reason.
From India, Mumbai
Anonymous
Sir employer holds salary of 15 days of new employee for six months coz attrition is high in BPO and as they spend time and money on training. So if anybody gets absconding they cud recover it from the salary. They do not pay to the employees who get absconding.
From India, Mumbai
riteshmaity
243

IT industries/ BRO are mostly cover under the Shops & Establishment Act and according to it, salary has to be paid by 7-10th day of the next month. Any delay, is illegal and against the law.
"Any reason" is a vague term. However, employers cannot withhold salary in order to withhold an employee.

From India, Kolkata
saswatabanerjee
2392

Dear anonymous
There are laws that clearly say you can n0tmhold the whole or part of anyone's salary.
First law applicable is payment of wages act
Second one is minimum wages act
Third is the shop and establishment act applicable to your state.
Reach each and you will find the provisions very clearly stated.
If you have are you a person to work for you, you have to irrespective of whether he is all is not able to deliver. If you are spending time and effort training him instead of putting into work, that is your problem and not his. The law requires you to pay him on time, every month. There is a clear provision that the maximum salary period is a month and over that. These provisions will apply irrespective of whether he is permanent employee, training, on probation or any other designation or statist you can think of. Even those appointed under apprentices act are required To be paid.

From India, Mumbai
umakanthan53
6018

Legal precepts always emerge from moral principles obtaining in social intercourse only. Therefore, apart from the statutory restrictions imposed on the minimum quantum, process of timely disbursement of salary/wages and determination and proportion of deductions that can be normally effected therefrom, Salary or wages is the prime consideration in the contract of employment. The obligation of the employer to make payment of salary arises only after the fulfillment of the obligation by the employee to render his services. So, it is a consequential or counter-obligation cast upon the employer that can not be simply brushed aside by him based on feigned reasons or fanciful imaginations such as attrition.
From India, Salem
Anonymous
Thanks A Lot everyone for guidance.
I shared the inputs given by you all but My employer asked me in his previous company they used to hold salary and gratuity etc. but that company never faced any problem and no employee complained about it as many of them are not aware about Labor Laws or they are least bother.
And also till date they are following the same practice. They withhold 15 days salary for 6 months and release after successful completion and don't pay to the employees who get absconding or terminated.
But I am really worried about their wrong practice and also feeling sad about those employees who are not getting their right to get salary for days they worked.
Kindly guide me how to convince my Management
Thanks

From India, Mumbai
jeevarathnam
639

Instead of holding the salaries its preferred to plan alternative strategies to retain the employees. You can plan such as retention allowance etc
From India, Bangalore
advarunsasi@gmail.com
8

Violation of section 5 and Section 7 of the Payment of wages Act...send a notice...ie..if you dont want to work with them..or approach the inspector.under the statute.
From India, Jamshedpur
umakanthan53
6018

Seeking legal redressal is an ultimate option subject to statutory limitations on the quantum of maximum salary. On the contrary, since both the poster and his employer genuinely understand that withholding of a sizable portion of salary earned by the employees for some time for the sake of reducing attrition rate is still an unethical practice whether agitated or not by the affected employees, why don't they try to understand the reasons for attrition and take positive steps to remedy the situation? It is said that employees do not leave Companies but managers. Any employee's innate aspiration for comparable hike in compensation package commensurate with timely career advancement can not be undermined.In India, barring a few companies viz., Bharat Heavy Electricals Ltd, Steel Authority of India Ltd, SPIC, Madras Refineries Ltd, ONGC, Infosys which reflect the value of their human resources in their annual reports, most of the companies do not give importance to Human Resource Accounting. Unfortunately, a majority of employers are more interested in business growth rather than organizational development. Development of employees is an inherent and integral part of the development of the organizations. Development of employees is, therefore, more a matter of learning than earning. Politely insist these points to your CEO at the appropriate moment.
From India, Salem
Anonymous
Thanks a lot sir for your guidance. Thanks for giving time from your busy schedule and replying my queries. I will definitely convince them for the benefit of company as well as employees.
From India, Mumbai
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