Employee Left Before Notice Period Ended: Can We Legally Deduct Pay?

An employee resigns giving one month notice. However, he stops coming to duty after completing 20 days, i.e., 10 days short of the notice period. He has worked for nearly 2.5 years. The company has not given any appointment letter. His full and final constitutes last working month's salary, bonus, and leave encashment. Is it legal to deduct Notice Pay for 10 days from his full and final? What does the law say regarding Notice Pay?

It depends on the terms and conditions of the appointment. If your appointment letter clearly states the notice period of one month or payment in lieu of notice period, then that would apply.

Even the provisions of the Shop Acts of almost all states specifically provide that any employee who has completed three months of continuous service in an establishment should not leave the establishment without giving one month's notice or payment in lieu of notice, and vice versa.