Salary on hold is when an individual’s regular salary payment has been temporarily suspended or delayed for some reason. There could be various reasons for placing a salary on hold, such as financial difficulties the employer faces, company restructuring, contractual disputes, or an investigation into potential misconduct.
Employees may not receive their usual compensation on the scheduled payday when a salary is on hold. Depending on the circumstances, the hold can last for a short period.
According to the employment agreement, employers may also hold employees’ salaries if they have not served their notice period.
The company can put new employees’ salaries on hold when their profile is not confirmed or the verification process is incomplete. However, this does not affect salary processing.
There are some reasons why an employer might put an employee’s salary on hold. Some of the most common reasons include: