HRSINGAPORE Community Discussions
Withholding of Salary
Dear HR Professionals,
Please advise for employees who are leaving the company (could be a resignation case or a termination case), if he/she fails to return the company asset and leaves the company, can HR withhold the last drawn salary or deduct the asset amount from the last payout?
Cannot withhold but can deduct an amount not more than 25% of 1-month salary after holding an inquiry or given the employee time to return asset.
Yes, the company can deduct from last pay. We will inform the staff to return if staff refuse or failed due to any reason, then we will take it as the staff didn't return and we will report to police and deduct from salary. It will be better if there are some acknowledge forms which stating staff have to responsible for company property that hands over to him.
"For damage or loss of money or goods including work gear, tools, equipment, and vehicles. Your salary will be deducted if you damage or lose such goods or money that you are responsible for. Before deducting your salary, your employer should: Hold an inquiry to determine if you are directly at fault. Not make any deductions until you have had the opportunity to explain the cause of the damage or loss. Not deduct more than 25% of your 1 month’s salary. The deduction must be made as a one-time lump sum payment" - From MOM Website.