Hi Everyone,
I am working for a indian IT company. But currently I am in US with my spouse on Leave without pay. Due to some personal reasons I had to resign my job, so I submitted my resignation and my supervisor approved the same. Because I am not in a position to leave US i.e. going back to INDIA to serve the notice period of 3 months, I opted to buy out my notice period. To make a buy out my employer is asking me to pay 3 months gross salary which is coming around 2.5 lakhs which is very high amount. It includes Basic pay (~35000)+HRA(17350)+ Special Allowance(26000)/month.
My employer is not having policies clearly defined. No policy document is clearly saying about the buying out notice period. Also when my employer's HR team prepared FnF Statement, they did numerous mistakes on calculating amount and I had to highlight to correct the same. If I ask why do I need to pay 3 months gross pay, they are asking me to refer the following point from my offer letter. And no where it is specified as Gross salary. As per industry standard most of the companies asking to pay the basic salary to buy out the notice period.
In my offer letter point under Notice period says as follows.
""Notice Period: On confirmation your appointment with the Company will be subject to termination with 3 months notice or payment in lieu thereof. Should you desire to resign from the Company you shall provide the Company with a prior written notice of similar period of such resignation or payment in lieu thereof. However, in case any disciplinary proceedings are either contemplated or pending against you, the Company shall have the right not to accept your resignation. If you desire to resign from your services hereunder, you shall, not withstanding the provision with respect to payment in lieu of the notice as provided hereunder, make yourself available during all office hours, for such period from the date of tendering your resignation, as may be required by the company as its discretion order to ensure smooth transition.""
Please note that it says "payment in lieu thereof". Just payment. What does it really mean? No point says that payment is Gross. Just a payment.
Please advice how I can take it forward. I am able to pay money for buying out my notice period. But not the gross salary, because for the past 4 months I am on Leave without pay.
Expecting your responses.
Thanks,
Victor.
I am working for a indian IT company. But currently I am in US with my spouse on Leave without pay. Due to some personal reasons I had to resign my job, so I submitted my resignation and my supervisor approved the same. Because I am not in a position to leave US i.e. going back to INDIA to serve the notice period of 3 months, I opted to buy out my notice period. To make a buy out my employer is asking me to pay 3 months gross salary which is coming around 2.5 lakhs which is very high amount. It includes Basic pay (~35000)+HRA(17350)+ Special Allowance(26000)/month.
My employer is not having policies clearly defined. No policy document is clearly saying about the buying out notice period. Also when my employer's HR team prepared FnF Statement, they did numerous mistakes on calculating amount and I had to highlight to correct the same. If I ask why do I need to pay 3 months gross pay, they are asking me to refer the following point from my offer letter. And no where it is specified as Gross salary. As per industry standard most of the companies asking to pay the basic salary to buy out the notice period.
In my offer letter point under Notice period says as follows.
""Notice Period: On confirmation your appointment with the Company will be subject to termination with 3 months notice or payment in lieu thereof. Should you desire to resign from the Company you shall provide the Company with a prior written notice of similar period of such resignation or payment in lieu thereof. However, in case any disciplinary proceedings are either contemplated or pending against you, the Company shall have the right not to accept your resignation. If you desire to resign from your services hereunder, you shall, not withstanding the provision with respect to payment in lieu of the notice as provided hereunder, make yourself available during all office hours, for such period from the date of tendering your resignation, as may be required by the company as its discretion order to ensure smooth transition.""
Please note that it says "payment in lieu thereof". Just payment. What does it really mean? No point says that payment is Gross. Just a payment.
Please advice how I can take it forward. I am able to pay money for buying out my notice period. But not the gross salary, because for the past 4 months I am on Leave without pay.
Expecting your responses.
Thanks,
Victor.