2 Answers
Dear Client,
Language of your offer letter determines whether an employer can legally retain the ₹10,000 retained every month. From the facts available in this regard, your offer letter contains terms such as the retained amount will be refunded only when there will be confirmation after completion of probation, however, your offer letter does not contain that the retained amount will be forfeited in case of resignation during probation.
Code on Wages, 2019, which is applicable from 21st November 2025, states that any deduction from the wages of the employees can only be made for the purposes provided by the code. Whether the remaining sum of money is a part of wages that have already been earned by the worker, a retention amount under the contract, or some other type of payment needs to be determined. The fact that you resigned during probation does not, by itself, conclusively determine whether the company may retain the money. But kindly check whether the state you have worked, has enforced the new Labour Code.
You should first send the employer a written request asking them to identify the specific contractual clause and legal basis under which the ₹10,000 per month is being withheld. Keep your offer letter, salary slips, resignation acceptance, bank statements and correspondence.
In the event that your employer fails to address the situation, then you can try seeking an alternative approach such as contacting the relevant labour department in your area.
I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.
Dear Client,
Based on your legal query, I suggest you my legal opinion;
1. Legal Position
Earned Wages Cannot Be Forfeited: Retaining a portion of your agreed salary is treated as earned wages for services already rendered. Under Indian labor jurisprudence and the Payment of Wages framework, employers cannot forfeit earned salary or enforce a disguised penalty simply because you resigned during probation.
Absence of a Forfeiture Clause: Since the letter does not explicitly state that the retained sum will be permanently forfeited if you resign before confirmation, the company cannot unilaterally withhold your earned pay.
2. Recommended Steps
Formal Demand Email;
Legal Notice;
If they refuse or fail to respond within 7–10 days, have an advocate issue a formal Legal Notice demanding immediate release of unpaid wages with interest. Most corporate employers settle at this stage to avoid statutory scrutiny.
Hope this answer helps!
If you require detailed legal advice, discussion of your documents, or guidance regarding the further legal course of action, you may opt for a one to one-consultation.
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