Notice Period Recovery: Should It Cover Gross Salary or Just Basic+DA? Seeking Legal Insights

Notice Period Recovery: Gross Salary or Basic+DA?

I have seen many companies having a policy of a notice period in lieu of salary. So my question is, when considering notice period money, does one need to recover all gross salary or only the Basic+DA part from the gross in the Full & Final statement? What is the legal provision on this matter, as I am not aware of it.

Please appraise.

Thanks & Regards,
Anant Karad

Most companies follow this rule: an employee needs to serve the notice period, or in lieu of the notice period, the employee needs to pay the gross salary amount.

If you have any further questions or need additional assistance, feel free to ask.

There is no specific legal position on this. Therefore, it is open to the company to opt for either of them. In some companies, it may be stated in the standing orders. There are arguments for both options. Search the citehr forum, and you will get a detailed discussion that has already taken place many times on this topic.