Notice Period Dilemma: Can HR Demand Gross Salary for Early Exit?

Hi,

I am working with an MNC. I have submitted my papers for my resignation and currently on the notice period. However, my offer letter says that the notice period is two months. There is no clause of pay in lieu of the notice period. I'm willing to serve a notice period of one month. Now, HR is insisting on paying the amount for the remaining one month, and that too the gross salary amount for a month. As far as I know, the in lieu amount should be of Basic. Does the labor law state anything related to this? Please help.

Thanks,
Sajeesh

In the absence of a clause in the service agreement "to pay salary in lieu of service of notice period," you can do so. The claim made by HR to pay salary for the remaining one-month notice period is correct. Normally in the agreement, only Gross salary would be referred to. Hence, it is OK but not to include the reimbursements.