Is It Fair for My Company to Deduct a Month's Salary Without Notice Terms? Seeking Advice

Dear All,

I worked in the company from 29/6/09 to 7/10/09, and I submitted my resignation on 1/10/09. There are no terms and conditions in the offer letter stating that I have to provide a one-month notice. However, the company is deducting one month's salary. Please share your opinion on this matter.

Best regards,
Biswajit

If there is a condition for a 1-month notice, have they stated that a 1-month salary is offered as an alternative for this?

- elakshminarayanan

It is illegal and unlawful unless mentioned in your appointment order. They do not have the right to deduct a single paisa from your full and final settlement of accounts as a notice period, subject to you being a staff or officer cadre. In the case of workmen, a separate ground/law is allowed (model/certified standing orders). You are requested once again to come to a conclusion in this regard.

Dear Biswajit,

If it is not mentioned anywhere in the document of terms and conditions of your employment, then it is an illegal practice, and they can't deduct one month's salary as a notice period. Ask them why they are deducting the one month salary, as you have already given a sufficient number of days as notice and are still not a confirmed employee.

Regards,

Amit Seth.

If there are no terms and conditions mentioned in your offer letter, they have no right to deduct your salary.

If you have received an appointment letter from the company, please read the terms. If it is mentioned that a 1-month notice is required (after confirmation - 1 month, on probation - 15 days), then you must serve one month or compensate the company with one month's salary. If not, a notice period is not required.

A. Chandra Reddy
AM-HR

Dear Mr. Biswajit,

The notice period depends on the appointment letter. If it is clearly mentioned in the offer letter that you will be confirmed after six months, then you have to resign as per the appointment letter. Otherwise, they cannot.

For more queries, please email me at radheshyam_m@yahoo.com.

Radheshyam

Hi,

When you sign an appointment letter with a company, you enter into a kind of agreement with the company. If nowhere in your letter is it mentioned about a notice period of one month or so, you can leave the company without giving any notice period. However, as a professional, if you have provided enough time for handover and knowledge transfer, there is no point in deducting notice money from you.

Ashish

Almost makes you feel that you are being penalized for acting professionally and giving a month's notice. If say you had just left when you received your salary, then the only deduction they could have done would have been the number of days you worked before you received your salary. And say if you had exceeded your vacation allowance by those many days, then you would be quids in.

Would you really like to be associated with such an unprofessional company? Better to not get a reference from them than to get one. As always, the above is not advice for you to do something unethical but purely my thoughts...

Cheers!

Hello,

My name is Nisha Bhatia, and I have 2 years of experience working in HR/Admin. Could you please help me with the salary breakdown including PF and ESI? I am unsure how to calculate it.

Dear Viswajit,

Have you received any written clarification from the company's side that one month's salary has been deducted in lieu of one month's notice period? If the answer is yes, you may discuss this with the concerned authority along with the terms and conditions of your Offer/Appointment letter. Usually, companies withhold one month's salary of the employee subject to the clearance of final "No Dues" from the company, and the same is released at the time of full and final settlement.

Thank you,
Ramesh Dixit
Lucknow

If you have an offer letter with an appointment letter that does not include any conditions requiring you to give one month's notice, then the company does not have the right to deduct one month's salary from your earnings for the company.

Dear Biswajit,

In every company, there must be a probation/confirmation period, i.e., employees have to receive a confirmation letter from the employer after completing 6 months (180 paid days of employment). Based on this, an employee can resign without a notice period, and the employer can terminate the employee without notice.

You didn't complete the probation period; therefore, the company has no right to deduct your salary.

Regards, Malini

Please check your offer letter for terms and conditions on probation and confirmation period. If nothing is mentioned, then you have the right to ask for what you deserve, as you have given enough notice period of one month to the company.

Regards, Vamsi...

Dear Nisha,

Salary components along with PF & ESIC may be as follows:

- Basic: 40-60% of Gross Salary
- HRA: 40-50% of Basic Salary
- CCA: 800/-
- Other Allowance: Gross Salary - Basic + HRA + CCA
- Gross Salary: Basic + HRA + CCA + Other Allowance

Employer's Contribution:
- PF Contribution: 12% of Basic
- ESIC Contribution: 4.75% of Gross Salary

CTC = Gross Salary + PF + ESIC contribution

I hope this information helps you solve your query.

Regards,
Amit Seth.

Hi Amit,

I am not able to understand. If a fellow is getting 8,40,000 INR as CTC, then how could we calculate it? According to his/her salary, it would be 70,000 INR per month.

Basic - 35,000 (50% of Gross)
HRA - 17,500 (50% of Basic)
CCA - 800
Other Allowances - 70,000 - 35,000 - 17,500 - 800 = 16,700

Now?