Deduction In Lieu Of Notice Period [Thread 191191]

Dear Friends,
I am Arun Singhal working as Personnel Manager. As per appointment letter 30 days notice period is required for resignation or 30 days pay will be deducted. My Basic is Rs 6800/- and gross salary Rs 12000/- pm.
Kindly advise what would be the deduction in lieu of notice period.
Thanks and regards

Mr Arun
In my company , If we are deducting one month notice period (e.i.Rs.6800.), deduction of only basic salary not CTC.
Regards
Ghanshyam

It varies from Company to Company. In some companies, it only on Basic and in some cases it is on CTC. Pl. check the appt letter clause carefully.

Dear arunsinghal1969,
Notice pay is as per the exit clause of appointment letter. It is a compensation given by one party (Who broke the contract) to other party because of the breach of contract. Whether it will be basic or gross, it will depend on exit clause of appointment letter and company policy. Notice pay should be same for the both party.
For more HR related information:White Eagle: legal aspect for Notice pay

Mr.Arun,
Notice pay depend on company policy, so study the App.Letter & act according to it,

Dear Arun,
Being a Personnel Manager yourself, u better know the policy of ur organisation, because this policy is differ from organisation to organisation. So u r the best person to know the Policy of ur organisation.

Mr.Jai Bhakshi,
in your thread u have stated as PERSONAL MANAGER, but as per my knowledge and understanding it is PERSONNEL MANAGER....can u pl clarify me on this ???????????????????
jai

It depends upon the Company policy. The trend these days is to deduct as per CTC and not basic salary.
In my opinion, if the appointment letter states that salary for one month would be deducted, it would include the gross pay.
Kindly check what has been done in other cases in your organization. You being the Personnel manager must have handled such cases or would have the records in personnel files to know the policy of the Company.
Hope this could help you.
Thanks & Regards,
Avika Kapoor

hi
The notice pay depends on the clauses stipulated in the appointment letter it self, when no stipulation is given in the appointment letter as to what sum of amount would be towards the notice pay then to my knowledge you got to pay the whole sum of last paid wage / salary as to the benefit of doubt goes to the employee as no proper clause has been made in the appointment letter.
At the time of framing out the appointment letter it self we got to stipulate clearly the sum of amount that could be toward the notice pay then no confusion could arise.
Mohan Rao
Manager HR

Dear Mr. Singhal
Hello
It would be better to peruse your appointment letter thoroughly. I hope it will be self-explainatory for your question. It may be only your basic or CTC.
Thanks & Regards
Ashok Kumar Singh