Facing a Notice Period Dilemma: How to Handle Partial Salary Payment and Lack of Communication?

Hi all, I hope all of you are doing well. I need suggestions on my scenario.

1. My resignation letter was submitted on 20th August 2019.
2. I received a response from my employer stating they will pay my salary in lieu of my notice period waiver.
3. Subsequently, I was released on 30th August 2019, even though I was prepared to work through my entire notice period.
4. On my last day of work, I was informed that for the remaining days, they would only pay me the basic pay, not the full amount. They are insisting on this, citing Indian Labor Law.
- The employer did not inform me of this beforehand. It was only after signing off and completing the exit documentation that they mentioned this, which was not stipulated in the offer letter.
- In the resignation acceptance email, they stated that they would only pay in lieu of salary.
5. They are manipulating my PL data for which encashment is available. Despite my attempts to reach out via phone and email, I have not received a response. I would appreciate your suggestions on this matter.

Thank you.

Hi,

Either a full notice period or gross salary in lieu of the same is the right procedure. When you are ready to serve the proper notice period, if the employer is relieving you, then they are bound to pay you the balance proportionate gross salary. While signing the full and final settlement statement, you should have noticed it and asked for clarification. Go to your office in person, meet your HR, make a request, and ask for full salary against the notice period.

Thanks, Lakshminarayanan, for the clarification. Now, they are not ready to pay the gross salary; they will pay me only the basic. When I asked them why they are doing so, HR replied, saying this is as per Indian Labor Law. So, I just wanted to know if there is any law or not. If yes, then there is no point in asking them. If no, then what can I do at this point.

Hi,

Basically, terms and conditions regarding notice pay should have been mentioned in your appointment letter/contract of employment letter, as applicable in your case. Also, if your company has certified standing orders, you can check those as well. While the general practice is to calculate notice pay based on gross salary, some companies may consider basic salary only.

Therefore, it depends on the terms outlined in your appointment. I recommend checking the separation clause and then discussing the matter with your employer.