Is it legal to hold salary during notice period?
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It’s normally forbidden to keep your pay during the notice period in India. The Payment of payments Act of 1936 ensures that payments earned are paid on schedule. Although the notice term in your employment contract may be specified, it cannot take precedence over your legal entitlement to your pay.
There are some exclusions. Employers may take legal obligations, such unpaid advances or damage to business property, out of your ultimate settlement. But it’s not allowed to withhold your complete compensation. If this is what your employer tries to do, you can: