Hi, I wanted to know if we, as an employer, can hold salary for a month after the employee resigns and completes the notice period.
An employee has resigned in January and served the notice period completely, but we are planning to pay him his last month's salary (January's) after a month (in March). I wanted to know if it is legal.
From India
Acknowledge(0)
Amend(0)
1An employee has resigned in January and served the notice period completely, but we are planning to pay him his last month's salary (January's) after a month (in March). I wanted to know if it is legal.
From India
Acknowledge(0)Amend(0)
Dear Friend,
Please read the appointment letter issued by your company upon your joining. They may have mentioned a separation clause. If they are not following the separation clause, then you are free to pursue legal action.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Please read the appointment letter issued by your company upon your joining. They may have mentioned a separation clause. If they are not following the separation clause, then you are free to pursue legal action.
Thank you.
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Anonymous,
Normally, salary dues are settled within a month after a person leaves the organization with proper notice. However, in practice, in several organizations, it may take extra time, possibly due to errors in handing over/taking over company property or responsibilities.
In your company's case, you are taking an extra month or two, which can be explained regarding the delay. There is nothing inherently legal or illegal about this, and if an employee questions it legally, you might have to pay interest on the delayed amount. Nevertheless, I see no problem at all, and the situation is reconcilable.
From India, Tiruchirappalli
Acknowledge(0)Amend(0)
Normally, salary dues are settled within a month after a person leaves the organization with proper notice. However, in practice, in several organizations, it may take extra time, possibly due to errors in handing over/taking over company property or responsibilities.
In your company's case, you are taking an extra month or two, which can be explained regarding the delay. There is nothing inherently legal or illegal about this, and if an employee questions it legally, you might have to pay interest on the delayed amount. Nevertheless, I see no problem at all, and the situation is reconcilable.
From India, Tiruchirappalli
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.