Dear Anoop,
You cannot off hand take recourse to withholding the pay of the employee. As you say, You have either heresay or a trustworthy information of the person's intention to leave the job, what is required is one to one discussion like an exit interview informally firstly to know his intention and also to advise him to adopt a positive approach as staying back without following the prescribed procedure will do him more harm than good in many ways one being the reference check.
S.K.Johri

From India, Delhi
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