What is Salary on Hold?

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.

What are the reasons behind the salary on hold?

There are some reasons why an employer might put an employee’s salary on hold. Some of the most common reasons include:

• If employees are consistently underperforming, their employer may put their salary on hold to motivate them to improve.
• If an employee is disciplined for misconduct, their employer may put their salary on hold as a punishment.
• The employee who takes a leave of absence, their salary be put on hold until they return to work.
• If an employer is experiencing financial difficulties, they may put employee salaries on hold to save money.
• An employer may require to put an employee’s salary on hold due to legal requirements if the employee is to investigate for fraud.

FAQs

What does it mean when an employee is on hold?

An employee is on hold means a company has temporarily suspended the job role and put the hiring process on hold for the time being.

What is meant by salary withheld?

Salary withheld means holding onto the salary of an employee and not paying it out for various reasons like incompletion of the notice period, violation of code of conduct, etc.

How many days salary hold after resignation?

Companies take at least 45-90 days to process the salary after an employee’s last working day at the organization. However, this is just an average number and some companies do clear the dues quickly.

Is salary on hold during the notice period?

It is up to the employee whether they want to complete the notice period and take home the salary. However, an employer cannot force an employee to complete the notice period, but they can withhold the salary during notice period if the employee does not show up.

What happens if salary is not paid after resignation?

If salary is not paid after resignation an employee can send a written reminder to the employer to clear the dues. But if the employee does not respond to the reminder, the employee can then send a legal notice. If all these reminders fail, the employee can then lodge a complaint against the employer.