Hi All need you assistance with the following calculation.
Employee worked only for 15 days during his notice period. Now, do we pay him 15 Days of full salary and rest 15 days notice shortfall will be deducted from the amount on basic or gross ?
Please assist ....

From India, Noida
Dear Monica,
What is the length of notice period? 1 month or even longer? In the normal course, any shortfall in the notice period will be adjusted from Earned Leave balance in the employee's credit. In case of your employee, let us assume the notice period is 1 month, then, as the employee had worked for only 15 days, the balance 15 days shortfall may be adjusted towards deducting Earned Leave in his credit. Hope you are clear.
With regards,

From India, Vijayawada
In addition to what Mr. Madhusudan has replied, what is your notice period clause, it is one month salary in lieu of notice period then it should be gross salary and not basic. Assume if the employee would have worked for one month would you pay only the basic pay or the gross pay.
From India, Ahmadabad
Shraddhavaan labhate gnanam!
can you please share any legal inference for adjusting of pending leave against shortfall in notice. my employment contract is silent about any such adjustment and my company does not adjust for unutilised earned leaves and demands for full i.e. gross payment.
Thanks in advance

From India, Mumbai
In such scenario also ask them to deduct the notice period from your Full and Final Settlement, wherein for any unutilized leave you will be getting encashment.
From India, Ahmadabad
Shortfall of notice period can be calculated only from basic as per compliance. The formula to calculate it is
(Basic*Number of shortfall days)/26.
Incase if you are waiving off the notice period based on the encashable leaves, the remaining shortfall days can be considered for calculation, if any.

From India, Madras
Hi All,

Can anyone help me.

I am serving notice period of 90 days in my current company. I want to serve notice period only for 30 days and want to payout for 60 days.

So how much I need to payout to the company.

As per offer letter I need to pay only basic but not sure.

By basic pm is 20K and EL is 5.

Please do the needful.

Below is the clause form my Offer Letter and a ticket:

"If early release accepted by Business, the number of Notice period shortfall days will be recovered from your Full and Final settlement considering the Basic pay."


1. Either party can terminate this employment by serving a notice of 90 days on the other. The Company may at its absolute

discretion make a payment representing salary (basic) in lieu of notice of termination. However, for cause like misconduct,

gross negligence, willful insubordination or disobedience, misbehavior or non-performance, Tech Mahindra Limited. may

terminate your services with immediate notice. The Company shall have the right to place you under suspension on

subsistence allowance and benefits as applicable pending any investigation into potential dishonesty, gross misconduct,

misappropriation, gross negligence, fraud or other circumstances, which expressly provides for termination of your

employment which if proved, would entitle The Company to dismiss your services summarily.

2. In the event of your serving on The Company a notice of termination of employment by submitting a resignation letter, your

release will be governed by the relevant policies in force at that point in time, subject to satisfactory handing over of your

duties, responsibilities, Company documents, Company assets, etc. to the relevant parties.

3. In case of Associates who are governed by any other service agreement(s) for serving a minimum stipulated period, the

associate will need to mandatorily fulfill requirements of Clause 3(a) along with applicable exit policy clauses under stipulated

service period agreed to and provided therein.


Hi I resigned from reputed organisation saying
"due to some medical complications with my family i am not able to concentrate on work so i decided to take brake in my career. I couldn't continue my work with an immediate effect."
I had a discussion with HR n manager on the same day, as i am having genuine reasons they agreed for buyout option(Submitted all company properties to HR at the same time).
I am not sure how BuyOut is calculated - In this i need to pay Gross salary of 3 months or only basic?
Please help me here.

From India, Hyderabad
Dear All, We have a policy to complete 3 months and if an employee serves 45 days of notice then what will be the calculation. Regards Ankita
From India, New Delhi
As the employee completed 45 days notice balance 45 days notice is to be recovered from the full and final settlement payable to the employee, provided this clause is already mentioned in the appointment/employment order.

From India, Madras

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