Seeking Advice: Should We Deduct Full Salary or Just Basic for Notice Period Breach?

Dear Seniors, I need your support and guidance in resolving one of the issues that I have to address at my organization. The issue is as follows: There was an employee at the Executive Level in our organization, and she has left without serving the notice period. We have prepared the F&F statement, and my manager has instructed me to consider her full salary as the employee is supposed to compensate us for not serving the notice period.

However, to the best of my knowledge, we should only consider the Basic salary in this case, not the full salary. The components of the salary are Basic, HRA, Transport Allowance, Attire Allowance, and Conveyance Reimbursement.

Please confirm if my understanding is correct, as I would like to be certain before presenting it to my manager.

Thank you.

We should consider the salary payable to the employee as per the appointment letter given to her, and not just the basic salary.

Regards,
DVD

The appointment letter is a little tricky as nothing is specified about the amount to be paid by the employee. Please read the paragraph mentioned in her appointment letter:

"Appointment Letter Clause

After confirmation, your services can be terminated on one month's notice or salary in lieu of notice, except for dismissal, discharge, or termination for misconduct when you will not be entitled to any such notice or salary thereof. If you desire to leave the service of the organization for any reason, then in that event, it shall be incumbent for you to do so with the consent of the Organization but subject to you giving the Organization at least three months' prior notice in writing."

Nothing is mentioned in terms of not serving the notice.

Regards

The employee should have given three months' notice before quitting; however, she has just abandoned the employment. Now, where is the question of a payout of any kind to the employee? Instead, you should be sending a notice to the employee for paying dues to the company. When sending the notice, consider the gross salary and not just the basic pay, and calculate the amount.

Ok...

Regards, DVD

She gave her resignation in the month of January and stopped coming to the office since we did not relieve her by the end of January. Now she is requesting to share the full and final calculations, thereby providing her the experience certificate. Thus, my manager has asked me to settle all her dues and not to release her experience certificate until she pays off everything that is due.

Thanks a lot for your guidance, and we will consider the gross only.

Regards

As we are the HR department, we must be fair to everyone. Therefore, we cannot waive her notice period. I am currently exploring ways in which we can assist her. We have also discussed with her the option of taking a proper break to settle down, with the intention of reabsorbing her later. However, she is relocating to a new city and is uncertain about returning.

Hence, I have chosen this approach in an effort to minimize her outstanding payments. I would like to express my gratitude to everyone, including Mr. Raj, for your time, support, and guidance on this matter.

Thank you.