Salary In Lieu Of Incomplete Notice Period - CiteHR
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Hi Members,
Need some clarification for calculating the salary in lieu of notice period.
My appointment letter states that I need to serve 2 months notice period however either party can end the employment by paying 2 months salary in lieu of the notice period.
My salary structure has the following heading .
1 . Basic
2 . HRS
3 . Conveyance Allowance
4 . Mobile Allowance
5 . Special Allowance
6 . Bonus
How will the salary in lieu of notice period calculated.
What headings of my salary will be considered while calculating this.

Normally, the Notice pay is calculated on basic. If it merely says as salary it can be interpreted as gross pay. Check the detailed conditions of appointment letter. But is not logical to include other allowances for the purpose of notice pay.
Pon

My previous company calculation was based only on Basic salary if an employee served incomplete notice period.
Does this rule changes from company to company.
Moreover allowances which are not even given to the employee should not be entitled to be recovered.

Hello,
The notice period salary from either side would depend upon the terms and conditions laid down initially in the offer of appointment. Since the offer of appointment is issued by the employer, these conditions are favourable to the employer. He expects that the employee should stay in the company and should not leave the company. The employer can shunt out the employee on bad conduct basis or on on inefficieny grounds and would not have to any any thing. Therefore, the offer of appointment is issued in such a way that the notice issuing employee has to render notice period full salary or gross salary with all allowances. It is a normal case. Therefore, you should try to cover up the notice period on duty.
Mahavir Mittal

Dear unknown,
Moreover allowances which are not even given to the employee should not be entitled to be recovered.
I agree but in CTC regime, the allowances are apportioned to meet one's tax issues. What is spl. allowance? it is very much part of basic but just excluded for the sake of retiral benefits and PF onus. Similarly, other host of allowances. So, it is the company policies decide the N.P. calculation.
Pon

Employer Not follow the notice period norms
Dear Seniors,
Please help me it is very very urgent, I am Ram from Madurai. My company HO is in Bangalore, My work location is in Chennai& Madurai. It is an eLearning Company work is in some schools. 6 months before I joined this company.
Company want to leave me from my services. I accepted their decision on the same day(4-Jan-14). i handed over the office laptop and other accessories.
But they wont follow the notice period norms(45 Days on either side). They pay only 15 days salary in the month of January, after a long request.
From the date of join they were deducting gratuity amount also.
Is it possible to withdrawn my gratuity and PF amount.
i resigned the company by the request of my reporting head.
Please help me, where i can register a complaint against my employer.
My Contact No is 9629112973. mailID: mani.math84@ gmail.com.

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