Hi All, I have left my last company after serving a notice period of around 45 days out of the required 90 days. Following my departure, I requested the company to settle the payment by deducting the remaining notice pay and to inform me of the deducted amount. However, the company did not respond to my emails for nine months.
Subsequently, they deducted the notice pay based on the gross salary and adjusted my leave encashment similarly for the unserved days. I raised the concern about why the notice pay was calculated on the gross salary instead of the basic salary. I believe that if they did not inform me of the changes for nine months, it is not my fault.
Common Practices in Notice Pay and Leave Encashment
Many companies typically deduct notice pay based on the basic salary and settle leave encashment on a gross basis. While our company settles leaves on a gross basis, I disagree with the decision to deduct notice pay on the gross salary without prior communication.
Request for Guidance
I kindly request guidance on the rules and laws regarding this matter. Thank you.