Hello All,
I am working for a small software development "private" company located in bangalore.
In my offer it is mentioned that I should serve two months notice period or payment in lieu
Now I am opting for a notice period buyout option but my employer is calculating the payout amount as "No. days*Gross salary"
My question: "Is notice period buyout amount calculated on "Gross salary*No. days" or "basic salary*No. days"?
I am being forced to pay the money so I would appreciate a quick response.
From India, Bengaluru
I am working for a small software development "private" company located in bangalore.
In my offer it is mentioned that I should serve two months notice period or payment in lieu
Now I am opting for a notice period buyout option but my employer is calculating the payout amount as "No. days*Gross salary"
My question: "Is notice period buyout amount calculated on "Gross salary*No. days" or "basic salary*No. days"?
I am being forced to pay the money so I would appreciate a quick response.
From India, Bengaluru
It depends upon how the salary has been defined in your appointment order. If you have a (basic) salary plus allowances plus reimbursements plus retirement benefits kind of a salary break up, then salary means basic salary only. At the same time, in your salary break up, gross salary which is including HRA and other allowances are shown as salary, then the gross salary will be the salary for the purpose of computing notice pay.
In the eyes of law, we have a basic salary and a dearness allowance forming part of statutory salary. At the same time there are court verdicts which have interpreted salary to mean an all inclusive amount which is payable as per contract of employment. One thing is very common and that is salary for any purpose will include all fixed remuneration payable while on duty or on leave with pay but does not include reimbursements of actual expenses met during a given period. The main thing to be noted is that this will be the salary that the employer pays if he desires to terminate you. Therefore, I don't thing that you should stick on to the legal terminology of the definition of wages or defend the policy of the company.
Madhu.T.K
From India, Kannur
4193In the eyes of law, we have a basic salary and a dearness allowance forming part of statutory salary. At the same time there are court verdicts which have interpreted salary to mean an all inclusive amount which is payable as per contract of employment. One thing is very common and that is salary for any purpose will include all fixed remuneration payable while on duty or on leave with pay but does not include reimbursements of actual expenses met during a given period. The main thing to be noted is that this will be the salary that the employer pays if he desires to terminate you. Therefore, I don't thing that you should stick on to the legal terminology of the definition of wages or defend the policy of the company.
Madhu.T.K
From India, Kannur
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