Hi Everyone, I would like to know about the calculations made on Notice period buy out reimbursement. As i was resigned from X company and joined Y company with mutual consent of buying the notice period of 30 days with Y company. In X company it is 60 days Notice period out of which i have served 15 days and then i have joined immediately in Y company. Have received the FnF statement and it is mentioned that i have been recovered for 45 days and they mentioned Rs.90000 ( considering per day pay is Rs.2000).
X company has mentioned the leave encashment (PL leaves) Amount of Rs.90000 in FnF statement as my earnings along with 15 days salary and other perks. Now i have forwarded the FnF statement to Y company to reimburse the notice period buy out pay for 30 days as they agreed earlier.
They have replied stating ("The notice buyout is based on 'Notice Pay Deduction' + GST minus 'leave encashment'. In this case, your leave encashment is nearly the same"). Adding to this they have also mentioned ( "Buyout as industry practice is based on the dent that employee receives post leave encashment. In general, employee negotiate on notice period with existing employer and principle being the leave balance that helps with the adjustments. You cannot assume that Buyouts are over the top in any case").
Please help me in clarifying the calculation and also let me know the statement of Y company is right or wrong.
Adding to this My X company has raised a peripheral Recovery of Rs. 70k and it is mentioned in FnF statement and considering all deductions now i need to pay nearly 70k to X company . As the leave encashment amount should also be subtracted here as it is my head ache to settle the recovery amount and leave encashment is something which i earned in my tenure as my savings.
How come Y company is now claiming that they will only consider the leave encashment and not my recovery amount which i need to pay to X company.
From India, New Delhi
Yes - Leave Encashments are a form of additional salary that you have received. Any Organization would not reimburse you for the encashment that you have already received - that tantamount to double benefit.
Company Y will only reimburse for 45 days of unserved notice period minus leave encashment - this is nothing different and is a consistent practice.
Also, your notice period is bought on 'Basic Salary'. No additional/ myriad allowances are covered in this.
Practical advice: Please call you HR contact person from Company X via phone and just understand the calculations. Notice period recoveries are often made complex by two organizations and employee is left to wonder in the middle of nowhere.
Do not worry - just call up your HR contact person and have some good discussions around calculations - have peace of mind.
From India, Delhi
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