Amruth (Senior HRIS Coordinatior) 11 July 2012

salary on-hold since i resigned i.e.,from last 60days

Hi,

My current company EMC Software and Services India Pvt. Ltd is holding my salary since I resigned from my position (i.e.,May 21, 2012). They have 60days of notice period as per the policy.

I sent my resignation email to my manager on May 21 telling I can serve only 30days, then he replied it is business requirment hence, I accepted it to serve complete 60days (i.e., Last day-July 20, 2012). And also requested him verbally to pay atleast May month's salary for which his answer was 'NO'. His intension is to harass me mentally. Even the HR Business Partner of our dept is a poppet of him and wants to be in his good books as my manager is the Director of Global HR Shared Services. Now I checked with the HR team who takes care of full & final settlement and understood that I will reviece my final demand draft only after August 5, 2012. So it would be only after 75days I would be getting my salary which is really becoming tough for me to survive in Bangalore city.

Just wanted to understand that is there any Labour Law or any Law which says that they cannot hold salary of an employee for more than 30days or a month from his last day. If yes, then request your advice on futher steps. Should I wait until I get relieved to sue them? Because I wish a smooth exit.

Thank you.

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3 Replies

Kumar Doab (FIN) 11 July 2012

In a given situation employee can invoke the provisions of Industrial Employment Standing Orders Act, SE act applicable to the state, Payment of Wages Act, ID act as per explanation of employee under these enactments or approach civil court.

You may refer to SE act applicable to your state and go thru chapter related to payment of wages and date of payment of wages.You can lodge complaint with Inspector.

The conduct of company is bad.

Company may announce to pay last month (2nd month of notice period) salary in FNF settlement.

Ideally company should pay the wages/FNF dues on last day in office or within 2 days.

As you are concerned about your reliving you may write under acknowledgment (mark a copy to your personal email id if you are writing email from official email id) to good offices of your appointing authority, MD, CEO, Company Secretary with a copy to Head-HR and if you wish your boss asking for payment of salary of first month of notice period. If you wish you can ask for say 80% of your dues and for this purpose you may even submit list of payables by company to you and payables by you to company and net dues payable to you.Let the comapny reply whatever it wants to reply.

JANAK RAJ VATSA (ADVOCATE) 11 July 2012

file a complaint in the labour court against the company for holding your salary

satheesh (aarbee) 17 August 2012

Dear Friend,

As per above the case , you can claim some compensation Before you going to court

Check with the company policy.

1. If as per company policy need to serve two month need to service.

2. If you are contract employee need to serve full contract months.

3. If on role employee as per company policey.

4. If you are served 5 year or more, you are eligible gratuity , this gratuity not hold 2 month, if hold the gratuity and salary, you can sue in court.

Regards,

Satheesh C