Salary On Hold

Certain employers do resort to holding back employees’ salaries citing poor performance. This is against the law as employees are entitled to their salary for their work and the time put in. As long as an employee reports to work, he is entitled to receive his salary.  In case the employee doesn’t show up for work, no-call no-show guidelines can be followed. But if an employee has given his written consent for holding the salary, the employer can put salary on hold.

An employer may also hold the salary of an employee who doesn’t serve his notice period as per the employment agreement.

Another instance where the company can put employee’s salaries on hold is the salaries of new employees whose verification is still incomplete. This however does not affect the processing of salary or the amount.