How to Label Notice Period Payments in Salary Statements for New and Leaving Employees?

Sunil_dr
Salary Statement Component for Notice Period Payments

Case 1: We are paying a new employee for the unserved notice period days in his previous employment. Can I include that amount in the salary statement as a separate component? If yes, what should the component name be used to appear in our salary statement (the same component name will appear in the salary slip as well)?

Case 2: An employee is being replaced, and we are paying the leaving employee as pay in lieu of notice. Can I include that amount in the salary statement as a separate component? If yes, what should the component name be used to appear in our salary statement (the same component name will appear in the salary slip as well)?

Since in both the above cases the employer is paying the employee, can a single component name be used for both cases?
Dinesh Divekar
Dear Sunil,

Case I: - Call it "Joining Bonus."

Case II: - Call it "Payment in Lieu of Notice Period."

Thanks,
Dinesh Divekar
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