Holding back employees’ salaries, except in certain specific situations, is generally against the law and can lead to legal consequences. Employees are entitled to receive their salary for the work they have performed and the time they have dedicated to the job.
While poor performance may lead to other consequences, withholding an employee’s salary is not an acceptable practice. Employee performance issues are typically addressed through performance improvement plans, feedback, and, in extreme cases, termination. If an employee fails to report to work without providing any notice (a no-call no-show situation), the employer may follow guidelines outlined in the employment contract or company policies. In some cases, companies may temporarily withhold the salaries of new employees if the verification process (background checks, reference checks, etc.) is still incomplete.