Notice Period Buyout Dilemma: Do I Really Owe My Full Salary?

amrendra@444
According to my offer letter, I have to give a 2-month notice period before leaving or have to pay 2 months' salary. Do I have to pay the full salary, or do I only have to pay the basic salary part? My employer is asking for full payment.
umakanthan53
There is no room for ambiguity or an interpretation suited to one's convenience when it is mentioned as "two months' salary" in the offer letter. Salary normally would mean the gross sum payable at the end of the wage period based on full attendance, including authorized leave and holidays.
ghorpade rajesh
Regarding your queries, I would like to suggest some value additions. As far as the notice period is concerned, there is a legal provision for one month. According to this provision, if an employer wishes to terminate an employee, it is expected that the employer gives one month's notice or pays one month's salary in lieu of the notice period. Conversely, if an employee is resigning from their services, it is also expected for them to provide one month's notice. However, there is no legal provision that empowers an employer to recover one month's pay directly from the employee.

An employer can claim recovery against damages or losses, but for that, they must follow certain judicial proceedings.

Lastly, you mentioned a two-month notice or two-month pay. This issue can be discussed based on service conditions. However, there is no legal support if an employee refuses to comply with a two-month notice or pay. In such a scenario, the responsibility will fall on the employer to clarify why a two-month period is necessary to relieve the employee.

Regards,
Ghorpade R.J.
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