Notice Period [Thread 567305]

Dear Seniors,
My company follows a policy of serving two months for notice period,or wages of two months. But we are deducting from the basic salary and not gross salary. I want to begin deducting it from gross. Will any law or norms restrict me from doing that?Please guide.

Dear,
According to me you notice period should be same for both side (Employee & Employer). On other hand its good if you deduct notice period on gross because if any employee works during notice period he/she will get salary on the basis of gross not on basic.
You have follow the mentioned below formula for notice period (Both Side) :
Monthly Gross Salary * 12 / 365 * days of notice period = Notice Period Amount

Dear Ruypasree, deduction of salary if the employee doesn't provide notice period is possible. However, it should be part of the org policy in first place approved by authorized personnel. You may deduct gross salary if this clause is mentioned in appointment letter to the employee since, that will have their consent before joining org to accept or reject. Anything that is not accepted by the employee during or in the course of his tenure in the org shall be prone for legal battle. I suggest if this clause is not mentioned in appointment letter then you should immediately roll out an interim process and take sign off from all employees post for all future recruitment you should make it as a standard clause. Ensure the revised policy/process change is formally approved by designated authority of the org.

I do agree with Sandi_Joshi...
You need to have a clear communication with your HR partner on this...