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Indian Law/Reg : Stop of pay during notice period



I have been working in vizag in SMAL since Feb 2011. As per the terms of employment I have to give 3 mnts notice before leaving the organization. I gave the resignation on 01 Nov 2012 and I am ready to serve the three months notice period but my salary has been held up for the month of Nov.

May I know that legally can my employer hold any amount of my salary if I am serving the 3 months notice period.

Thanks Vijay for your referral.

Employer has NO right to hold payment of salary merely for your having resigned and being under notice period.

This is since salary has to be paid once a month in terms of Payment of Wages Act.

Stoppage of salary payment during notice period, merely for employee having resigned, is unfortunate, arbitrary and illegal practice adopted by some employers merely to delay cash out or discourage attrition.

Suggest to bring this to notice of your employer and insist politely but firmly for payment of salary every month as before. Suggest to convey this orally and that not yielding result, in writing (by email or letter) to the employer, firmly but politely also stating such non payment (which is unfortunate, arbitrary and illegal) is also causing you considerable hardship for your running your house.

Am sure, this will yield you the desired result.

Best Regards.  

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Rajeev Dewal


Indian Law relating to Banking and Financial Transactions. Kindly read instructions on "Ask the Question" page before asking a question. Kindly note that the replies here are by way of general information and not to be taken as legal advice nor the same form any client attorney relationship.


Over 20 years as In-House Counsel and banker with International, Private and Public Sector banks in India.

Currently, Head- Legal, RBL Bank Limited, India (see web:


Awards and Honors
University Prize- LLB Examination, Distinction- CAIIB.

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