Hi, I wanted to know if we, as an employer can hold salary for a month after the employee resigns & completes the notice period?
An employee has resigned in Jan & served notice period completely, but we are planning to pay him his last month's salary(Jan's) after a month(in March) I wanted to know if it is legal.
From India
1An employee has resigned in Jan & served notice period completely, but we are planning to pay him his last month's salary(Jan's) after a month(in March) I wanted to know if it is legal.
From India
Dear Anonymous
Normally the salary dues are settled within a month after a person leaves the organisation with proper notice. But at times in practice in several organizations, it takes extra time. Possibly due to errors in handing over /taking over of company property or charge or whatsoever.
In your company case you are taking a month or two extra and that can be explained as to why the delay. There is nothing legal or non-legal about this and if an employee questions legally utmost you might have to pay the interest thereon. But I see there is no problem at all. It is reconcilable.
From India, Tiruchirappalli
Normally the salary dues are settled within a month after a person leaves the organisation with proper notice. But at times in practice in several organizations, it takes extra time. Possibly due to errors in handing over /taking over of company property or charge or whatsoever.
In your company case you are taking a month or two extra and that can be explained as to why the delay. There is nothing legal or non-legal about this and if an employee questions legally utmost you might have to pay the interest thereon. But I see there is no problem at all. It is reconcilable.
From India, Tiruchirappalli
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