Notice Period Dilemma: Should Recovery Be Based on Gross or Basic Salary?

Notice Period Recovery: Gross vs. Basic Salary

I have a query regarding notice period recovery from the employee. If the employee does not provide the complete notice period, should the recovery be based on gross salary or basic salary? Is there any legal reference to this point, or is it entirely at the discretion of the employer? Please help me with this.

Regards,
Shijit.

It's completely dependent on the employer, but when you are issued an appointment letter, what clause is mentioned for the notice period recovery? If not mentioned, the general recovery amount is one month's salary.

There is no legal reference to it, but usually, the recovery happens on gross salary.

There is no legal reference to this. It can be based on basic or gross salary, depending on the agreement.

Regards,
S. Aravind

Fixing the notice period is at the discretion of the employer. It is not mentioned in any law; however, it should be realistic or mutually agreed upon by both parties.

Recovery of the notice period is also at the discretion of the employer, whether based on basic or gross salary. Nevertheless, this needs to be specified in the employment terms and conditions (appointment letter). It is like an agreement between two parties.

Regards.

It is simple to understand that if there is any agreement made or any clause clearly written in the appointment letter, the notice period will be paid accordingly.

Regards,
TEJPAL NEGI

Understanding Notice Period Salary Recovery

Salary means the basic salary plus other allowances received in the monthly salary. Therefore, the recovery of notice period salary will also include these allowances, not just the basic salary.

Notice Period Recovery or Payment

Notice period recovery or payment is as per the agreed contract or appointment conditions. It is normally the same for both employees and employers.

In my experience with various reputed engineering companies in India, the notice period payment is based on the basic salary.

Regards,
Pon

As per my opinion, salary means Basic plus DA, while the rest are allowances. Normally, the notice period is mentioned in the appointment letter for one, two, or three months' salary in lieu of the notice period.

Regards,
Rakesh Dubey