Notice Period Buyout - Full N Final Settlement

Seniors,

I have been stuck with my resignation and joining a new company for the last 2 months. Initially, I was skeptical about resigning as I had a 2-month notice period. I had to resign and join another company within 15 days, so I took my time, gave interviews, and got selected.

I resigned from my current company and asked them to release me in a month, which was okay with my manager as our project was over. Tomorrow is my last day in this company, and since I am not serving a full 2-month notice period, my company is deducting one month's salary from my full and final settlement. According to norms, they should only deduct one month's basic salary, and they are informing me about this today. The other company I am joining on Monday is still undecided about buying out my notice period.

Please advise me on what I should do now.

Thank you.

Dear Arti,

Please check your appointment letter to confirm whether it states a two-month notice period or a one-month notice period, which you have already served. If it is a two-month notice, they can deduct the salary, but if it is a one-month notice, they cannot deduct your salary.

Regards,
J. S. Malik

Hi,

I have served a 31-day notice period, but as far as my understanding goes, I thought they would deduct my basic pay, not the whole salary.

Hi Aarti,

Please check your employee manual. Notice Pay varies from company to company. Some deduct just basic pay, while others deduct net salary, etc.

Regarding deductions, please request your manager to waive off the remaining one month of the notice period since the project is completed.

Every company has a different policy - some deduct on basic salary and some on the gross salary. Check the policy at your company.

You should have received an email confirmation from your new employer regarding the notice buy-out. If they have verbally committed to you, they should stick to it. If they don't, it reflects the ethics of the company.

Hi Aarti,

The deduction would be only as per the clause mentioned in the appointment letter, which you would have already signed with your existing employer. It cannot be extended later on without your consent, so check it out in your appointment letter. If it is a two-month notice, then they have the right to deduct your one month's salary towards the short notice period.

Regards,
Jyoti Negi