Notice Payout Issues - CiteHR
Ravi5554
Asst.manager -hr
Tsivasankaran
Consultant
+2 Others

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Hi,Need help with a certain issue I am facing with regards to my notice payout ;

I recently acquired a job with a company and hence decided to inform my boss of the same and ask him as to when was the earliest possible they can relieve me.As per our rules,we have a 90 days notice period.My boss informed me verbally that he would relieve me from middle of next month,which is like serving about 50 days notice.When I passed on the same to my new company asking for the offer letter.In the meanwhile yesterday I officially sent a mail to my boss resigning from the job and confirming on the date.but he replied that he can relieve me only by next month end and further upon requesting to be relieved by middle of next month,have been informed that notice pay would be deducted for the same.

My question is since my boss has agreed to waive off 30 days of my notice and I will be serving 30 days,can he ask for notice pay of the remaining 30 days or for the full 60 days?

2.If I have to payout,will it be calculated on my basic pay or my gross pay?

Question 1
You need to pay for the balance period of 30 days only.
Question 2
Generally it is calculated on Basic Salary. However youmay check with your organisation. Also check what is method used for encashment of leave. Logically, the same method shall be used both for encashment of leave and for Notice Pay
Sivasankaran

Hi,
1.Your boss agreed to waived off 30 days, did you received in writing.
2. Please go through with appointment letter and see what clause mentioned about notice period, always lieu of 1 month notice 1 month salary acceptance is general in most of the organization.
3. In case if your boss says you need to serve 90 days notice, then you must follow.
4.So better go through with your appointment letter.

Dear Anand,
Please learn first that in HR what is in writing is more important than what is orally promised or assured. Notice period or pay in lieu of can be insisted by employer and you have to pay. Normally it is on gross but depends on what is said in your appointment letter.
Kannan

Thanks for your reply.Encashment is on basic pay only,but still can I be asked to pay on gross.Also I am being given house rent but the amount is included in "consolidated allowance" as we have a separate head HRA which is just a part of my salary breakup.I am also getting CCA as I have moved in from another city.So even if I am asked to pay gross,will it include both the above?
If there is a mutual agreement between your boss and you that you will be released early as you do not have enough dependency, the company should not ask for any pay in return. Or else better to stay and do rest and earn money rather than leaving early and pay back to the company
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My company has recently been merged with our parent company,hence we got an acquisition letter wherein the 90 days notice was mentioned.but unfortunately I seem to have misplaced it when I got transferred recently.As for the waive off,although he has not mentioned it as waive off,but it is understood from his mail as he agreed to release me at end of october wherein I had sent the mail on Sep 1st and I intend to work for the whole of september.
Dear Deepa,
My boss has agreed to release me by Oct end,but my new employer wants me to join by 1st oct,hence the issue of payout.Also I would not be able to stay back and complete the period as the new employer would not be willing to wait so long and I do not wish to miss this opportunity.

Hi,
1. if this clause is mentioned in appointment letter that, you have to serve 90 days then you must until and unless they relieve you.
2. its 1 month salary, if they mentioned in Appointment letter otherwise default rate as prescribing by management.
3. so better clear the aspects with management.

Dear Aditya,
Since I dont have my letter with me,I have just enquired with a colleague of mine and asked for the exact clause.It states"The company shall be entitled to terminate your services without assigning any reason by giving 90 days notice or salary in lieu of notice.In the event you desiring to leave the company,you will give the company 90 days notice in writing or 90 days salary in lieu of notice."Point to be noted here is that in the case of company relieving me,it says 90 days notice or salary without mentioning the no. of days,but when it comes to the case of the employee,it clearly states 90 days in both the case of notice or salary in lieu.So what essentially is the difference between the two sentences?


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