How Do You Calculate Deductions for an Employee's Notice Period Resignation?

I am from the HR Department, and one of our employees wants to resign. As per the notice period, he is required to work for three months or pay an equivalent amount.

Calculating Deductions for Notice Period

I would like to know how to calculate his deductions for this period.

Thank you.

The notice period is calculated based on CTC per day, multiplied by the number of remaining working days. Any leave taken during this duration will push the date of release by a day. Please refer to the exit policy at your firm. Ideally, the calculation is mentioned in there.

Wish you all the best!

Sir, in the exit policy, there is nothing mentioned. How do I calculate the full and final settlement with the pending notice period?

How do I make the full and final payment during the notice period?

I am not very clear about the question. However, from what I have understood, I am giving my response.

1. If an employee has given three months' notice as per the letter given to him, where is the question of deduction? You will relieve him at the end of the third month, and you would have paid salary to him for all these three months.

2. If an employee resigns, saying that he may be relieved with immediate effect and he is prepared to pay the Notice Period, then normally there are two practices in vogue:
- Recover only Basic Plus DA.
- Recover monthly salary and exclude all calculations of annual payments.
My advice is if you have a leave encashment policy and if, as per the policy, you are paying only Basic, then you should follow the same here as well. Alternatively, if you are paying the full salary for leave encashment, then follow the same practice for notice pay calculation as well. If you do not have any such policy in leave encashment, debate and evolve a policy.

3. If an employee gives partial notice, say 30 days, then you need to recover only for the balance 60 days.