Is it legal to withhold employee salary?
I worked at an organization from September 2025 to February 2, 2026. I resigned immediately without serving the required 30-day notice period during probation due to health issues and higher education commitments. The company is refusing to pay my earned salary for January 2026, citing violation of the notice period. In their written response, they stated that I am “not liable for any full and final settlement” because I did not serve the notice period. I have sent them a legal notice demanding payment by February 23, 2026 under the Payment of Wages Act, 1936. I believe that earned wages cannot be withheld for notice period shortfalls under Section 7 of the Act, and that any notice period damages are a separate civil matter. Please advise on the strength of my case and the best approach for resolution.
Your case appears strong. Salary for work already performed cannot normally be withheld by the employer. The notice period issue is separate, and at most, the company may recover proportionate notice pay as per your contract, not deny your entire earned salary. If payment is not made, you can file a complaint before the Labour Authority or initiate legal proceedings to recover your dues. For further legal assistance contact us on our helpline number.
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