How shall we credit the salary of an employee if he has resigned during the probation period and notice period as mentioned in offer letter is 4 weeks?

richa kumari1107
Dear All,

Kindly check the details below and suggest to me how to pay salary in this case:

Date of joining - 16th May '18
Date of resignation - 17th Aug '18 (reason - relocating to another city)
Last Working Day - 17th Sep '18
Notice period as per the probation period rule of the company - 4 weeks
Yearly Gross salary - INR 400,000
Basic Salary - INR 200,000

Should the company pay the full salary or only the basic salary for Aug '18 and 17 days' salary for Sep '18, or should it hold 50% of the salary for Aug '18?

Kindly suggest.
Rahul Chhabra
Please confirm when the last working day of the employee is. Is it the 17th of September? Or is the employee not serving the notice period?
richa kumari1107
Dear Rahul Chhabra,

LWD is 17th Sep '18.
Rahul Chhabra
Dear Richa,

The employee is serving the required notice of 4 weeks. Under such a circumstance, the employee's full salary for the month of August and 17 days in September will be generated. You may release the August salary by month-end (if your company policy allows) and release 17 days of September as F&F post-clearance is done.

Regards,
Rahul Chhabra
richa kumari1107
Dear Rahul,

I would like to highlight that in her offer letter it is mentioned that - "During the probation period, the written notice is of four weeks or basic salary in lieu thereof on either side." So, I just wanted to understand whether he shall be paid the basic salary or the full gross salary.
Rahul Chhabra
During the probation period, the written notice is of four weeks or basic salary in lieu thereof on either side. It means that if the employee doesn't give notice of 4 weeks, he/she has to pay basic salary for 4 weeks in its place. Since she has given notice, she is eligible for full salary.

Please consult your seniors in HR or finance in your organization for a better understanding of this.

Rahul
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