Is it legal for a company in India to withhold an employee’s salary simply because they didn’t meet their target? What if the employee then leaves the company, and they refuse to pay full and final settlement, instead sending a legal notice with questionable terms?

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Law Forum › Category: Labour & Service › Is it legal for a company in India to withhold an employee’s salary simply because they didn’t meet their target? What if the employee then leaves the company, and they refuse to pay full and final settlement, instead sending a legal notice with questionable terms?
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Apni Law Staff asked 3 months ago

Is it legal for a company in India to withhold an employee’s salary simply because they didn’t meet their target? What if the employee then leaves the company, and they refuse to pay full and final settlement, instead sending a legal notice with questionable terms?

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Apni Law Staff answered 3 months ago

No, it is not legal for a company in India to withhold an employee’s salary for not meeting a target. If an employee leaves and a company refuses to pay full and final settlement, they must provide a valid reason and any deductions must be justified and documented. Refusal without valid grounds could be considered unlawful.

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