Salary hold rule during notice period - hold for both months or release one month?

Dear Seniors, A company has two months notice period & employee has to serve the complete notice period.

Shall we hold his salary for the entire two months or can release the first-month salary & hold the second-month salary?

Please advise.

Thanks
Meenu

Hi,

Hold of salary during notice period is not ethical and against labour laws.

However many leading companies follow this concept of holding salary during notice period and releasing partial salary for monthly expenses. The reason being many employees follow the habit of absconding from work ( after submitting resignation) without any information after the credit of salary. By holding part of their salaries employers are ensuring that they complete their proper notice period without fail.

In your case as your company is having two months notice, employee can't suffer without salary for two months and hence you may hold a part of salary say 10-20% and release it along with full and final settlement.

Holding salary during notice period is basically illegal. But in reality there are cases when the employee has outstanding loan which is to be returned by the employee and the employee instructed to adjust it from pending salary or the employee is not communicating anything how to repay the loan amount, in those cases salary holding is common for many organizations.

Otherwise if there is nothing, it is always wise to pay salary due to employee on time.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions
+91 98310 81531
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Let me be honest - looking after HR, Admin for the past 15 years, today HR fraternity personnel are coming with Business learning, wherein HR indepth study is missing. HR professionals have a great responsibility of taking care of the needs of human beings engaged by the organization. They need to be caring and respect the rights of an employee, but unfortunately, the HR so-called new breed professionals come with MBA wherein HR doesn't teach the way. They only are taught mere basics and the whole aspect of the HR department's role is somewhere lost.
Also, the people who choose HR does not have a caring attitude themselves, so the result is evident in what we all observe... They become a puppet of the owners / Business Drivers' Directors without making an HR point.
Sadly, this is true in many companies.