Your offer letter is drafted by a non HR person, who is not aware about compliance.
If you are registered under Gujarat Shops and establishment act, your leave policies and employment rule should be in accordance with the provisions of said act. 5 days of casual leave in a month, in my opinion, is not in accordance with relevant law.
Even if, we assume that , job offer is a contract between your company and your employee, you have no where mentioned that you will not pay him. you have only mentioned that you will not make payment of basic pay. Salary is a mix of basic pay and allowances, so you are supposed to pay rest of the salary, even by your own admission.
As it is obvious that the outgoing employee had gone to court, be prepared to pay his salary. According to a court judgement, employer-employee relationship does not end with employee putting in his paper, it continues till the last day of his work and salary is employee's right .
You should consult a legal adviser but in my opinion the court will make you pay.
6th August 2013 From India, Delhi
Thanks for your time.
Yes, you are right it is written by me and one of my ex employee.
Regarding casual leave leave, according to you can't keep ceiling on maximum leave per month?
Regarding paying for notice period violation, except for basic pay there is no additional allowance.
6th August 2013 From India, Vadodara
Greetings for the day ahead!!!
Leave rules are governed by the shops and establishment act of respective states. You will have to check actual act to see what are the provisions for leave for the state in which your company is operating.
Casual leave is given to meet personal needs or some other exigency and it's not Leave without pay. You yourself think, if you give 5 CLs each month, then your employee can take 60 days of leave for which there are no deductions, then 4 offs each month which comes to 48 days, then 5 national holidays in a year; so total loss of working day will be greater than equal to 113 in one year.
In my opinion, you should consult someone to have your policies framed in proper manner.
7th August 2013 From India, Delhi