How Should We Handle Salary Deductions for Incomplete Notice Periods? Seeking Advice!

Greetings to All, I just want some information regarding payment deduction without serving the notice period. In my company, if the notice period is for two months, but recently one employee left the organization, and he served the notice period for only 14 days. Now, he is claiming his salary as we have not released his salary due to the non-completion of the notice period. As per our policy, the notice period/notice pay for discontinuation of service is two months' notice or two months' basic salary in lieu. Please give me your suggestions on how to calculate his salary if we release his salary. His basic salary was $5000, and his gross salary was $20000. Please provide your suggestions.

Regards, Supriya

As you have mentioned, when an employee exits the company, they are required to serve a 2-month notice period. In this case, the employee in question has not completed the full notice period. Therefore, legally, they cannot claim their salary. Instead, to obtain their relieving letter, the employee should pay the remaining amount owed, in addition to 14 days of basic salary.

Regards,
Ashutosh