Notice Pay Deductions

dattavinay
I want to understand the general rule regarding the notice period while settling the Full and Final for a permanent employee (more than 5 years of service) who has resigned without giving any notice period. My question is we deduct notice period pay as basic pay or gross pay.
Thanks & regards
Vinay
srimba8989
Notice Pay should be deducted from gross pay... And it cane be deducted or even can be waived off if the concern manager approves...
shrinivasarao
Dear Sir,
but so many companies in final settlement they are paying on basic, but at the time deduction they are calculating on Gross Pay is it justified,
Please clarify,
Regards,
K. Srinivas Rao.
HR
vibhakar
Dear All;
When an employer terminates an employee without notice, employer has to pay salary in lieu of notice. But when an employee leaves without notice, employer can insist on notice working and till then not calculate or pay his full and final settlement. There is normally no provision of employee paying salary in lieu of notice.
Yes, in certain organisations employer deducts salary in lieu of notice from the full and final settlement. But this is where it is "Teri bhi chup, meri bhi chup". No one complains. Employee is eager to join new organisation. So he accepts it or gulps it down.
Vibhakar Ramtirthkar.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute