Dear Ms Sneha
The relevant clause under A.P Shops and Establishment Act says that
Termination of the services of an employee by the employer: Sec 47(1)Termination in case where, employee is having 6months or One year service. No employee who is having continuous service for 6 months, services can not be terminated unless one month notice is given or pay in lieu of notice is paid. Further in case of employee who is having cotinuous service of one year , in addition to the above, service compensation which is equivalent to 15 days wages shall be paid.
Eligible for Service Compensation: Apart from getting pay in lieu of notice period one month, if notice is not given, the terminated employee is entitled to get service compensation also as per
Sec 47(3)Eligibility of service compensation: Employee who has continuous service for not less than 1 year is eligible for service compensation at the rate of 15 days wages for every completed year of service.Employees is also eligible to get service compensation on account of 1)Voluntary cessation of work on reaching the superannation age of 60 years,2) Physical or Mental infirmity 3) Resignation 4) Death or Disablement.
Here the salary means the gross salary only. The employer needs to pay one month gross salary in lieu of notice period to terminate the services of his employee if he was not given such notice for the termination services.
Regards
NVRao
Tanuku