What should I do if my salary is held by company if I served notice period of 45 days ?


As per the Labour Law no one can hold the salary for the days of work that you have rendered to your organization. The salary should be paid accounting till the last working day irrespective of the salary payment date during the full and final settlement process on your exit. Speak to HR and send a mail or letter by registered post to settle the dues of salary. If there is no reply consult and advocate to send a legal notice to demand the payment of dues

No, your employer cannot hold back your salary for the entire duration of the notice period, if your notice period is more than one month.

It is illegal and can be challenged in court. It doesnÕt matter if it has been written in your appointment letter or employee handbook.

Anything illegal mentioned in your appointment letter or employee manual makes it null and void.

You will get your salary as you get in normal course.

But, if you resign without serving the notice period, then the company is entitled to recover the notice pay.

Company may hold last month salary and may disburse it in FNF settlement.

In your case if you have tendered notice of resignation and has mentioned notice period/effective date of resignation in your notice of resignation, then you have notified the company about exact last date in office.

Reference: Other than an imposition of a fine by legal authorities an employee can seek redressal for non-payment of his salary/due wages by :

Ð Filling a suit against the employer as specified under employment laws.

Ð Taking help of a legal advisor and issuing a legal notice to the employer for payment of pending dues.

-Filling an FIR against the employer for the breach of trust of the employment contract.

Ð Reaching out to District Magistrate or the Registrar of Companies (ROC) to complain about the malpractices of the company.

Ð Reaching out to the labor court and claiming there for the salary from an employer legally.

the Payment of Wages Act, 1936
In case an employee fulfills the notice requirement, the employer has to either :

Ð Pay the pending wages/salary to the person before 7th or 10th of the proceeding month for which he has served the notice period.

Ð Pay on the last working day of the employee.

Ð Pay before the expiry of the second day of employment resignation or termination.

Various state laws provide a minimum of one month to three months period to be served as Notice period by the employee.

Note: Notice period is the time period from the receipt of termination letter or wilful resignation till the last working day of the employee in the organization. As per law, the employee is also entitled to receive payment for the notice period served by him.

If the employee fails in serving the company pre-stated notice period norms the company can either:-

Ð Sue him for breach of employment agreement for notice terms.

Ð Can demand to serve the notice period or pay to the company.

Ð To handover, the assets and secret holdings to the company & get some amount deducted from his final pay

Ð or may decide the actions depending on circumstances.



Ask FREE question
Ask Question
Eg - Start with How, Why, What, Should I, When will...? etc
Thank you.  Please share the below details
* If you are outside India, mention WhatsApp Number with Country Code
Place of Property / Employment / Legal Issue / Residence / Your City