Full And Final Settlement - Notice Period Deduction? - CiteHR
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If an employee resigns and gives one month notice as per appointment letter.
He is having 15 days Leave balance to his account.
1. Can he avail those 15 days leaves during notice period in spite of management do not sanction those leaves?
2. If he proceeds on leaves without getting sanctioned what should be done? Those 15 days should be counted as notice period or not?
Please clarify.
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Notice pay, whether is gross or basic is purely governed by the said clause in the letter of appointment.
With regards to calculation, the last drawn salary will be the basis, provided that you have been consistently issuing letters of paycut (with the revised salary) and the same is accepted and acknowledged by the employee.
The same logic goes for increase in salary in view of annual increments.
Dear Prasad,
Availing of leaves during the notice period or the adjustment of the said leave against the notice period is purely determined by the letter of appointment and the company policy.
In general many company does not encourage availing of leaves during notice period as the basic purpose of asking someone to serve notice period is that the organisation gets sufficient time to identify a replacement and further to ensure smooth handover of the operations. However, management may at its discretion extend or reduce or dispense with the notice period, if required, provided such a discretion is mentioned in the letter of appointment.
If leave was not sanctioned and there has been no communication to this effect, it can be treated as absenteeism and the said employee can be terminated by initiating disciplinary action.
Dear Kapil, I have a doubt here suppose on the time of joining someone’s basic is 4000 and when he is leaving his basic is 7500 then on which basic the f n f will be cleared? Regards Sanjeev
Dear Sanjeev,
All the calculations, payments, benefits as well as recoveries will be always based on 'current' or 'last drawn salary'. Will you accept the salary you were drawing 10 years back now ?? common sense is't it !!!
Thanks & Regards

Can same cost be calculated and paid to an unconfirmed staff; a staff still under probation and less than 6month that he joined the organisation.
Dear Garima,
Cost Cutting will be appilcable in case of left employees, so accordingly you need to process his/her FFS.
Deduction in FFS is done as per the company policy but most organisations follow is of deducting from the basic not from gross.
Cost cutting is applicable to all. Notice pay deduction on basic or gross depend upon terms of employement & Company's policy. In any case base of Notice pay deduction or payment should be same.
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