Payment Of Lieu

Hi,
I want to know that If employee want to leave his job without giving one month notice period then he has to give "Payment of lieu". As per the contract If that payment of lieu is one month's salary then that will be just the basic pay or the gross salary of the month?

That depends on the company's policy. Usually it is basic, but a number of companies use the gross.
Make sure that you define what you mean as 'salary' in case of notice period.....in your appointment letters. That will make things very clear.

HRprof's comments are very precise and complete in this regard. Last time I discussed this subject with my Advocate, he said there are Supreme Court Rulings to support this point.
KKT

We strongly adhere to the employment terms and conditions as the contracts we have state that one months notice or payment in lieu thereof if the party resigns, we then state this is at the discretion of the manager.
For example it isn't fair if the employee needs to resign immediately for unforseen circumstances beyond their control - this comes down to a company policy and most organisations will agree that you should not punish an employee for their resignation if their resignation is for a legitimate reason
:)

hello,
as per contract - yes, ususlly basic, but that again depends on the salary as a whole. and depends comapny to company.
however if the supervisor waives off the same. then it may also be taken into consideration.