The Torah prohibition of "Bal Talin" forbids employers from withholding the wages owed to their workers. The question arises as to whether an employer avoids this prohibition by making a partial payment. For example, if a worker is owed $1000, and the employer pays $800 and tells the worker that he’ll receive the rest in another few weeks, does he violate the prohibition of "Bal Talin"? Does the fact that he paid the majority of the wages suffice to avoid this transgression, or must he pay the full amount?
According to Halacha, partial payment does not suffice to avoid the prohibition of "Bal Talin." If an employer still owes his worker money after a day passes from when the wages are due, then he transgresses this prohibition even if he paid the majority of the amount he owed.
This is, unfortunately, a common occurrence when people hire contractors to build or do renovations. Many people withhold a percentage of the money even after the work is completed to satisfaction, claiming that they want to wait to ensure that everything works for the next several months. Of course, if the two parties had from the outset agreed upon a payment schedule whereby a percentage of the funds is withheld for a period of time after the work is completed, this is perfectly legitimate, since the contractor agreed to receive the full payment later. And it goes without saying that one is required to pay the full sum only after the work has indeed been completed to satisfaction. However, if no payment schedule had been stipulated, and the work is completed, the customer must pay the contractor in full, and is not permitted to withhold a percentage of the payment. If he does, then he violates the Torah prohibition of "Bal Talin."
For this reason (among others), open communication is crucial whenever two parties enter into any sort of financial agreement. If one knows that he will want to withhold a percentage of the payment for several months after construction, it is vital that this be stated clearly from the outset. Being clear and open about the details of the arrangement helps avoid not only unwanted conflicts and arguments, but also serious Torah violations.
Summary: An employer violates the Torah prohibition against withholding wages even if he pays the majority of the amount owed. Therefore, if one hires a contractor for construction work and wishes to withhold part of the payment for several months after the work is completed to ensure that everything works properly, this must be stipulated from the outset, as otherwise he will be in violation of this Halacha.
