3 Months Notice

Dear all,
I am working as Asst Manager HR in a Pharma Company. According to our appointment letter if any employee desires to tender resignation he has to give 3 months notice or pay in lieu of notice period.
Now please clarify the following :
1: if suppose he has given one month notice, do company wants to pay that one month salary? or can be adjusted and asked him to pay two ( 3-1) months salary as he has not give notice for 3 months.( infact he gave only one month notice)
2: how this pay in leiu of notice can be calculated......in the above example person gross is 15000 per month and 7000 per month basic....will it be calculated on basic or gross.
please suggest. this is very urgent
Thanks
Neelima

dear neelema
yes ,if employee has given only one month notice than two month more salary to be deducted from his earnings and you can adjust his one month salary also.
now how much to be deducted is no where written in law.it depends upon your practice if u remove anyone whether u pay on full or basic.it is give and take policy if u pay on full than deduct full ,if u pay on basic than deduct basic.
tks
j s malik

Dear Seniors
total 24 members have seen,but no body has answered
is this a puzzle to u tooo or not feeling to answer

since the notice period is 3 months and the employee has given one months notice only effective short period is 2 months so he needs to pay 2 months gross salary provided he has served the one month notice period completely. its calculated on gross salary and not on basic.

Dear Member,
All terminal benefits and compensation there of are based only on basic wages and threre is no statutory provision to calculate on Gross wages. However, if you have specific terms and conditions and the same has acceptance form both the side. You have to calculate the notice pay according to your specific terms and condition otherwise the normal rule will apply.
Regards,
Murugavel.B

Neelima,
In effect the employee will need to pay for the shortfall in 2 months notice. The same shall be calculated on the basis of Gross salary.
Hope this helps.
Suja