Resigned with Short Notice: Do I Owe Gross or Basic Salary for the Notice Period?

Hi,

As per my company's rules, the notice period should be 3 months. However, I have resigned with a 15-day notice period. My HR says that I have to pay the gross salary for 75 days. So, my query is whether I should pay the gross or basic salary. If it is the basic salary, please suggest in which act this provision exists.

Please advise.

What is written in your appointment order regarding notice? That will be binding.

As per the offer letter:

Either party may give 3 months' notice period in writing or three months' salary in lieu of notice to effect the termination.

Thank you.

3 Months' salary means it is three months' gross salary, which is paid monthly. It is not the basic salary. This is clearly mentioned in the Appointment Order and is binding. There are no acts or laws made separately for it.

Email: c.neyimkhan@gmail.com
Date: 19.4.16