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0661@suraj   11 October 2017

Salary

Hi,

I have resigned my organization on 5th of oct and notice period is 30 days. I would like to know that why my company is holding my last month salary and when i asked them they were like 2 months salary will come in final settlement. Please advise me is it legal to keep hold 2 months salary for 1 month notice period!



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 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     11 October 2017

As far as the period for settlement is concerned, going strictly by the rules, the final settlement needs to happen on an employee's last working day at the organisation. However, as clearances take time, it is prevalent policy to do so within 30-45 days after the employee has left. For gratuity, the stipulation is 30 days after leaving the company, while bonuses must be paid within the specified accounting year.

A common point of contention is the notice period. Even so, it is clear according to the law. Whichever party does not live up to the commitments in the contract will have to compensate the other.

Kumar Doab (FIN)     11 October 2017

At least I am not aware of any law that lays down that salary of preceding month and during notice period be withheld and paid after LWD.

Does the appointment letterissued to you and any rules or policy issued to you mention that salalry as mentioned by you, can be withheld and paid after LWF in FnF settlement?

0661@suraj   12 October 2017

Hi Kumar,

In my appointment letter its only mentioned that 1 month notice period and during that time period they can hold my current month salary for final settlement.


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