What is Salary On Hold?
Employers cannot withhold employees' salaries due to poor performance, as it is illegal. Employees are entitled to their salary for the time they work, regardless of performance. If an employee reports to work, they must receive their salary. However, if an employee fails to show up without notice, employers may follow no-call, no-show policies.
There are specific situations where holding back salaries is permissible:
If the employee provides written consent for salary withholding.
If the employee fails to serve the notice period outlined in their employment contract.
If the salary pertains to new employees whose background verification is pending, although this doesn’t impact the salary amount or its eventual processing.