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.
Dear client, Your case appears strong. The employer cannot normally withhold salary owed on work already being done. The issue with notice period is not connected, and at the most, the company could only compensate relative proportions of notice pay according to your contract, not withhold your entire salary earned. Failure to pay may also be reported to the Labour Authority or legal action taken against you in order to claim your dues. If you have any query please feel free to contact us.
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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