Sahitha Ravindran (Manager) 12 March 2013
Hello,
I need your advice on this.
If an employee resigns from a company on 15th february, and he has 45 days notice period to serve, can we hold back the salary for February and for the rest of the notice period in March and then pay him the whole salary as full and final settlement in March salary cycle
(*This will be a policy and will be intimated to the employee while joining the company and/or as a policy update).
Please tell me whether it is legal.
Manish Udar (www.Mehnat.IN) 12 March 2013
No you cannot do this.
Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 12 March 2013
with prior intimation to employee you can.
Kumar Doab (FIN) 12 March 2013
Learned experts/members have given valuable advice.
The payment of wages, time of payment of wages is usual pay day.
Various enactments cover payment of wages e.g.:
IESO Act/Model Standing Orders, SE Act/Payment of Wages Act…..
IESO Act/Model Standing Orders guide to pay wages within office hours on last day in office. Conditions stated in standing orders shall prevail and can not be negated in appointment letter.
The cap on wages under Payment of Wages Act has been increased to Rs.18000/pm, so it shall cover more employees now.
One of the duties of Inspector under SE Act is to ensure payment of wages to employee (SE Act does not indiscriminate between workman and non workman and is applicable to all employees) even in case of separation…..so you won’t find relief….
It is felt that no private agreement can provide immunity to employer from the provisions of the enactments….
Employer is duty bound to pay wages on time…
At the time of signing appointment letter employer is in dominant position, still employer should not act to take away the rights of employee…
The unpaid wages may be claimed as debt on employer…
As suggested by Mr. Udar employee may charge the employer…..
There are many threads at LCI which you may go thru e.g:
|
Discussion > Labour & Service Law > Shops Act > Resignation of an employee |
https://www.lawyersclubindia.com/forum/Resignation-of-an-employee-76209.asp
45 day notice period given by employee is sufficient to issue NOC from all depts.. and complete exit formalities.
Salary of March may be paid by last day in office/usual pay day.
https://www.lawyersclubindia.com/forum/details.asp?mod_id=72011&offset=1#.UNRXofLZ1JI
|
Discussion > Labour & Service Law > Disputes > Delay in full and final settlement payment |
Valuable advice of learned experts/members is sought.
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