Salary On Hold
When an employee’s salary is withheld, it can be due to various reasons, but there are strict guidelines governing this.
In general, an employee is entitled to their salary for the time they have worked.
Employers cannot legally hold back wages without proper justification.
Below are the common situations where salary on hold might be encountered:
- Performance Issues: Employers cannot withhold salary based on poor performance. Employees are legally entitled to their wages if they have reported for work.
- Written Consent: If an employee gives written consent, an employer may hold the salary for specific reasons like agreements tied to bonuses or loans.
- Notice Period: If an employee does not serve the notice period as per their employment agreement, the company may hold part of their salary until the situation is resolved.
- Verification Process: In some cases, salaries of new employees may be held if their background verification is pending. However, this does not impact the overall salary processing or the amount.
While holding salaries is possible under certain conditions, it should always align with legal and contractual obligations to ensure the employee’s rights are respected.
Frequently Asked Questions (FAQ)
Q. What are the legal consequences for employers who wrongfully withhold salaries?
A. Employers who wrongfully withhold salaries can face legal action. Employees can file a complaint with labour authorities, and the employer may be required to pay penalties or compensation.
Q. How long can an employer legally hold an employee's salary for pending verification?
A. Employers can only hold salaries during the verification process for a reasonable period. If delays occur, the employee’s rights should not be compromised, and wages must be released promptly once verification is complete.
Q. What steps can an employee take if their salary is withheld without justification?
A. If a salary is withheld unjustly, the employee should first contact HR for clarification. If unresolved, they can file a formal complaint with the labour department, seeking intervention for salary release.
