My company has a two-month notice period and pays salaries between the 4th and 9th of every month. I submitted my resignation on the 12th of this month and am currently serving the notice period. I’ve heard that companies are required to pay the full salary for the month an employee resigns. Could someone explain this to me? Additionally, my company processes final settlements after 45 days, meaning I’ll have to wait almost three months to receive my dues. Is this standard practice?

Apni Law
Apni Law
Law Forum › Category: Labour & Service › My company has a two-month notice period and pays salaries between the 4th and 9th of every month. I submitted my resignation on the 12th of this month and am currently serving the notice period. I’ve heard that companies are required to pay the full salary for the month an employee resigns. Could someone explain this to me? Additionally, my company processes final settlements after 45 days, meaning I’ll have to wait almost three months to receive my dues. Is this standard practice?
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Apni Law Staff asked 1 year ago

My company has a two-month notice period and pays salaries between the 4th and 9th of every month. I submitted my resignation on the 12th of this month and am currently serving the notice period. I’ve heard that companies are required to pay the full salary for the month an employee resigns. Could someone explain this to me? Additionally, my company processes final settlements after 45 days, meaning I’ll have to wait almost three months to receive my dues. Is this standard practice?

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Apni Law Staff answered 1 year ago

Indian law does not mandate full salary payment for the entire month of resignation. You’re likely entitled to salary proportionate to the days worked during the notice period. The 45-day processing time for final settlements is not standard practice and can be challenged. You should review your employment contract and consult with a lawyer to understand your rights and options.

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