Navigating Final Settlements: Is It Fair to Adjust Salary for Reduced Hours Post-Maternity Leave?

Guidance Needed on Employee Resignation and Salary Adjustment

One of our employees resigned soon after returning from maternity leave. We gave a one-month extension following her maternity leave and offered her work-from-home options, flexible hours, and the ability to log in at the office as needed. However, things did not work out from the resource end, and she resigned. During her notice period, she logged in for only 4-5 hours a day instead of the required 9 hours. Clear instructions and guidelines were provided to her regarding maintaining a clean attendance record, but she proved to be a difficult resource.

The issue at hand is that she served her notice with limited hours of contribution and then left. Her salary was adjusted proportionally to her working hours for the first and second months (i.e., if she worked 5 hours a day, the salary paid reflected those 5 hours), with the final month reserved for her full and final settlement (FNF). Now, during the FNF process, the management has suggested recovering the salary for the shortfall of hours, meaning the hours she did not contribute.

Considerations for Salary Recovery

a. Originally, the requirement was for 9 hours per day (inclusive of break hours), but her actual contribution was only 5 hours (inclusive of break time).

b. The salary paid was based on 5 hours per day.

c. The proposal now is to recover the remaining 4 hours from the 5 hours mentioned in point "b." Is this a valid course of action?

Is the above a valid thought?

Understanding Employment Terms and Notice Periods

I think that the individual is a monthly-rated salary employee with a 9-hour work schedule per day, including a rest interval. The fact that she was allowed to work from home shows that the establishment would fall under the Shops and Establishments Act, though this information is not explicitly stated in the post. It is also unclear whether the work schedule is based on a 5-day week or a 6-day week, and whether the paid weekly holiday is one day or two days. In any case, the normal working hours per week should not exceed a total of 48 hours.

After her leave, she has worked for a total of 3 months, and the third month served as the notice period. For the first two months, she was paid a salary proportionate to the actual hours she worked. During the third month, she continued to work for only 5 hours a day instead of 9 hours. If she had bought out the notice period instead of actually working, she would have to pay for the entire month's salary.

Therefore, it seems correct to me to effect a recovery for the unserved notice period from the salary payable for the actual period worked.