Calculating Salary In Lieu Of The Notice Period

an employee of a small credit card company is a sales professional who has hardly completed one month in the company and has resigned and served a notice of 7 days (instead of 15 days as stated in the contract) so the company has decided to relieve him in one day because since he is a sales professional he can no more be sent to the field to build new relationships and he is not old enough in the company to do any follow ups and other related jobs.
my questions:
1. f he is relieved earlier. do we need to pay for the notice period...
2. if yes, then how is the calculation of salary in lieu of that remaining notice period done? is it on the basis of s paying the amount in lieu of the notice period....how is the calculation of the salary done? would he be paid on CTC, GROSS OR NET SALARY? if an employee's salary is Rs 20,000 CTC...Rs 18000 Gross and Rs 15000 Net.
please advise.

1. f he is relieved earlier. do we need to pay for the notice period... - NO, ask him/her company is readt to relieve you early do you want to go if answer is YES then comapny need to pay any amount.
2. if yes, then how is the calculation of salary in lieu of that remaining notice period done? is it on the basis of s paying the amount in lieu of the notice period....how is the calculation of the salary done? would he be paid on CTC, GROSS OR NET SALARY? if an employee's salary is Rs 20,000 CTC...Rs 18000 Gross and Rs 15000 Net. - Calculation will be as per the clauses of Appointment Letter.

Any Further query please do revert back.

Hi Meena;
Full and final formalities differ from company to company and is usually mentioned in the appointment letter.
1. The most important point of your question is that the employee is still under probation and has not been confirmed in the employment so the company is not liable to pay for any notice period, and vice versa.
2. Notice period or any other calculation(i.e. leave encashment etc) is done by taking only the basic into consideration for eg if the basic is Rs. 10,000/ and you have to deduct or give 15 days notice period then the total will be 10,000/2 = Rs. 5000/-
Shikha

Hi Shikha,
Are you sure, the notice period is calculated only on basic? if in appointment letter, it is written that the a person can leave the organization by serving one month notice or salary in lieu thereof, in such case, can the company deduct the notice pay on the Gross Amount?
As per your above revert, it has to be only on Basic, is it written in law somewhere? if yes, kindly provide the reference.
thanks & regards,
Sudeep