Feeling Cheated by HR: Is It Fair to Calculate Earned Leave and Notice Period Differently?

I have been working in my present organization for the last 4 years. In this year's appraisal (July 2014), my HR gave me a notice stating that I'm not performing as per the expectations of the management and will be reviewed again after three months on October 20. If in that review my performance is not as expected, then these three months would be taken as the notice period, and I will be relieved from my duties (since the notice period is three months).

Within one month, I got a job offer and resigned, giving one month's notice and asked to adjust my earned leaves, which amount to 47 days. Now, my HR says they will calculate the earned leave based on basic salary and calculate the rest of the period for which I had to pay the company as per the CTC.

I want to know if this is a fair practice. If the company is calculating my earned leaves based on basic salary, then they should calculate the balance of the notice period on basic salary only. However, my HR informed me that it's the company's policy. When I asked him to show it to me in writing, he kept mum and said he would get back to me later.

Please suggest the right option as I feel cheated and harassed. How can a company have such a practice where they use different formulas for giving benefits to employees and for debiting them?

Thank you.

[QUOTE=Rahul D.; 2172049]

I am working in my present organization for the last 4 years. In this appraisal (July 2014), my HR gave me a notice stating that I'm not performing as per the expectation of the management and will be reviewed again after three months on Oct 20. If in that review my performance is not as per the expectation, then these three months would be taken as a notice period, and I will be relieved from my duties (since the notice period is of three months).

Now, after one month, I got a job offer and resigned, giving one month's notice and asked to adjust my earned leaves, which is 47 days. Now, my HR says that they will calculate the earned leave on basic salary and calculate the rest of the period for which I had to pay the company as per the CTC.

I want to know if this is a fair practice. If the company is calculating my earned leaves based on basic salary, then they should calculate the balance of the notice period on basic salary only. But my HR informed me that it's a company's policy. When I asked him to show it to me and give it to me in writing, he kept mum and said he will get back to me later.

Please suggest to me the right option, as I'm feeling cheated and harassed. How can a company have such a practice that while giving benefits to employees, they calculate with a different formula and while debiting it uses another formula?

Suggestion for Handling the Situation

I suggest you look at this issue in totality. The present company feels that your performance is not enough for you to continue. Now you have got a job where you are needed. I suggest you do not make an issue with your present company; rather, exit amicably. Tomorrow your future employer will take your reference, and if the present company does not give a good reference, you will always be in the "to watch" category.

Regards,
Mahesh

Generally speaking, if the leaves are calculated using one formula, the same should be applied for the deduction of notice pay. The argument used by the company for a different formula is that earned leaves are benefits and, therefore, are paid based on the Basic Salary. However, the Notice Period is when the employee is giving away the days he would otherwise have worked. This argument falls flat, as if I take a 47-day leave, my salary would not be deducted, and I would receive the entire salary. I hope you can get a favorable reason from HR and the company.

Regards,
Ashutosh Thakre