Deduction In Lieu Of Notice Period [Thread 191191]

Hi.........
generally on the basic notice pay is deducted,but go through to the appointment letter and legal advice , I think suprem court has given some guidlines on this.
sanjay

Dear Mr. Sighal,
if you appointment letter is silent on calcuation of deduction of salary then the follwoing could be apply :
1. As per law : one month's basic will be deducted
2. As per company policy (if not written but they are doing) : basic or gross or CTC
So, you can check with person who is processing the payroll.
Regards
Manish Sahni

Yes, like several of our friends in their threads have said:
1. it is Personnel Manager and not Personal Manager.
2. I agree that as a Personnel Manager, you should be aware of such basic things.
3. You should study the exit clause in your Appointment Letter and act accordingly.
In the absence of any specific condition, I am afraid it will have to be Gross Pay that
will be adjusted against Notice Period.
Cheers!!!!
Vasant Nair

Dear Mr Arun,
You being a personnel manager, I do not expect such type of query from you atleast. For which Co you work for ? Mr Jay Bakshi has told it rightly...........
Exserg

CTC comprises of many heads like bonus,employer pf contribution etc.....for notice period do we need to pay these????
is it fair??
seniors ur openions required.
JAI

Regarding lieu notice period has concerned , it is different from company to company. Most of appointment letter has mentioned like " in of resignation from srvice you will requre to give one month notice or pay in lieu of such notice or pay for the period falling short of the prescribed notice period".
If it has not mentioned regarding lieu payment and the salary has fixed for one month, you need to pay one salary in gross.
Here i am asking during your service tenure any employees resigned or not. If resign what policy you have applied from them the same will be applicable to you.

Dear Mr Arun
You are telling that your services can be terminated by either party by giving one month notice to the other party or making payment in lieu thereof . Therefore, undoubtedly you are require to pay Rs 12000/ to your employer towards notice period to get the relief from your services on account of your resignation.
In any organisation salary includes not only Basic, DA and any other allowance. Except for payment of Contributions of ESI, PF, gratuity, bonus for all other purposes, it means gross salary of the employee. i.e Rs 12000/- in your case.
Regards
NVRao
Hyderabad