Full And Final Settlement - How To Calculate

For the purpose of calculations of full & final settlement of employee , can we adjust the notice period of employee towards his existing leaves (for Eg : notice period = 60 days , Existing leaves = 15 , full & final settlement for 45 days) if this is not possible, what is legal aspect for full & final settlement? what is basis for paying leave salary, whether it is on only Basic+Da or Gross salary?. what are the legal issues regarding payment of leave salary?
Regards
Subrahmanyam

The notice period is generally there so that sufficient time is available for proper handover to can be taken / given. Further is also helps in finding a replacement for the employee..
1. Basic + DA can be deducted from his final settlement.... [ or any other amount as mentioned in the appointment letter] + the variable factors such as conveyance, allowances etc cannot be deducted from the settlement
2. Leave days are not included in the notice period i.e. if somebody wants to take 15 days leave after notice period of 60 days... he would have to work another 15 days [60+15=85 days]..
Ajmal Mirza
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Dear Subhramanyam
In my organisation we do not adjust the leaves that a person has in his notice period. We reimburse the Leaves on the basic part of the salary. :)
regards
prerna