Dear Friends,
I am Arun Singhal, working as a Personnel Manager. As per the appointment letter, a 30-day notice period is required for resignation, or 30 days' pay will be deducted. My basic salary is Rs 6800/-, and the gross salary is Rs 12000/- per month.
Kindly advise on what the deduction would be in lieu of the notice period.
Thanks and regards
From India, New Delhi
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5I am Arun Singhal, working as a Personnel Manager. As per the appointment letter, a 30-day notice period is required for resignation, or 30 days' pay will be deducted. My basic salary is Rs 6800/-, and the gross salary is Rs 12000/- per month.
Kindly advise on what the deduction would be in lieu of the notice period.
Thanks and regards
From India, New Delhi
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Mr Arun In my company , If we are deducting one month notice period (e.i.Rs.6800.), deduction of only basic salary not CTC. Regards Ghanshyam
From India, Delhi
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From India, Delhi
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It varies from Company to Company. In some companies, it only on Basic and in some cases it is on CTC. Pl. check the appt letter clause carefully.
From India, Lucknow
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From India, Lucknow
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Dear arunsinghal1969,
Notice pay is as per the exit clause of the appointment letter. It is compensation given by one party (who broke the contract) to the other party because of the breach of the contract. Whether it will be basic or gross will depend on the exit clause of the appointment letter and company policy. Notice pay should be the same for both parties.
For more HR-related information: [White Eagle: legal aspect for Notice pay](http://kuldeeprathore.blogspot.com/2009/08/legal-aspect-for-notice-pay.html)
From India, Hyderabad
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Notice pay is as per the exit clause of the appointment letter. It is compensation given by one party (who broke the contract) to the other party because of the breach of the contract. Whether it will be basic or gross will depend on the exit clause of the appointment letter and company policy. Notice pay should be the same for both parties.
For more HR-related information: [White Eagle: legal aspect for Notice pay](http://kuldeeprathore.blogspot.com/2009/08/legal-aspect-for-notice-pay.html)
From India, Hyderabad
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Mr.Arun, Notice pay depend on company policy, so study the App.Letter & act according to it,
From India, Madras
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From India, Madras
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Dear Arun,
As a Personnel Manager, you are well aware of the policies of your organization. It is important to note that these policies can vary from one organization to another. Therefore, you are the best person to be familiar with the specific policies of your organization.
Thank you.
From India, Delhi
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As a Personnel Manager, you are well aware of the policies of your organization. It is important to note that these policies can vary from one organization to another. Therefore, you are the best person to be familiar with the specific policies of your organization.
Thank you.
From India, Delhi
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Mr.Jai Bhakshi, in your thread u have stated as PERSONAL MANAGER, but as per my knowledge and understanding it is PERSONNEL MANAGER....can u pl clarify me on this ??????????????????? jai
From India, Hyderabad
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From India, Hyderabad
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It depends upon the company policy. The trend these days is to deduct as per CTC and not basic salary.
In my opinion, if the appointment letter states that salary for one month would be deducted, it would include the gross pay. Kindly check what has been done in other cases in your organization. You, being the Personnel Manager, must have handled such cases or would have the records in personnel files to know the policy of the company. Hope this could help you.
Thanks & Regards,
Avika Kapoor
From India, New Delhi
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In my opinion, if the appointment letter states that salary for one month would be deducted, it would include the gross pay. Kindly check what has been done in other cases in your organization. You, being the Personnel Manager, must have handled such cases or would have the records in personnel files to know the policy of the company. Hope this could help you.
Thanks & Regards,
Avika Kapoor
From India, New Delhi
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Hi,
The notice pay depends on the clauses stipulated in the appointment letter itself. When no stipulation is given in the appointment letter regarding the amount that should be allocated towards the notice pay, then to my knowledge, you must pay the entire sum of the last paid wage or salary. The benefit of the doubt goes to the employee in this case, as no proper clause has been included in the appointment letter.
At the time of drafting the appointment letter, we must clearly specify the amount that could be allocated towards the notice pay to avoid any confusion.
Mohan Rao
Manager HR
From India, Visakhapatnam
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The notice pay depends on the clauses stipulated in the appointment letter itself. When no stipulation is given in the appointment letter regarding the amount that should be allocated towards the notice pay, then to my knowledge, you must pay the entire sum of the last paid wage or salary. The benefit of the doubt goes to the employee in this case, as no proper clause has been included in the appointment letter.
At the time of drafting the appointment letter, we must clearly specify the amount that could be allocated towards the notice pay to avoid any confusion.
Mohan Rao
Manager HR
From India, Visakhapatnam
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Dear Mr. Singhal,
Hello.
It would be better to peruse your appointment letter thoroughly. I hope it will be self-explanatory for your question. It may only cover your basic salary or CTC.
Thanks & Regards,
Ashok Kumar Singh
From India, New Delhi
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Hello.
It would be better to peruse your appointment letter thoroughly. I hope it will be self-explanatory for your question. It may only cover your basic salary or CTC.
Thanks & Regards,
Ashok Kumar Singh
From India, New Delhi
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Hi......... generally on the basic notice pay is deducted,but go through to the appointment letter and legal advice , I think suprem court has given some guidlines on this. sanjay
From India, Delhi
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From India, Delhi
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Dear Mr. Sighal,
If your appointment letter is silent on the calculation of deduction of salary, then the following could apply:
1. As per law: one month's basic will be deducted.
2. As per company policy (if not explicitly stated but practiced): basic, gross, or CTC.
You can verify this with the person responsible for processing the payroll.
Regards,
Manish Sahni
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If your appointment letter is silent on the calculation of deduction of salary, then the following could apply:
1. As per law: one month's basic will be deducted.
2. As per company policy (if not explicitly stated but practiced): basic, gross, or CTC.
You can verify this with the person responsible for processing the payroll.
Regards,
Manish Sahni
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Yes, like several of our friends in their threads have said:
1. It is Personnel Manager and not Personal Manager.
2. I agree that as a Personnel Manager, you should be aware of such basic things.
3. You should study the exit clause in your Appointment Letter and act accordingly. In the absence of any specific condition, I am afraid it will have to be Gross Pay that will be adjusted against the Notice Period.
Cheers!
Vasant Nair
From India, Mumbai
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1. It is Personnel Manager and not Personal Manager.
2. I agree that as a Personnel Manager, you should be aware of such basic things.
3. You should study the exit clause in your Appointment Letter and act accordingly. In the absence of any specific condition, I am afraid it will have to be Gross Pay that will be adjusted against the Notice Period.
Cheers!
Vasant Nair
From India, Mumbai
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Dear Mr Arun, You being a personnel manager, I do not expect such type of query from you atleast. For which Co you work for ? Mr Jay Bakshi has told it rightly........... Exserg
From India, New Delhi
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From India, New Delhi
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CTC comprises of many heads like bonus,employer pf contribution etc.....for notice period do we need to pay these???? is it fair?? seniors ur openions required. JAI
From India, Hyderabad
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From India, Hyderabad
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Regarding the notice period in lieu, it varies from company to company. Most appointment letters state, "In the event of resignation from service, you will be required to provide one month's notice or pay in lieu of such notice, or pay for the period falling short of the prescribed notice period."
If there is no mention of lieu payment and the salary is fixed for one month, you are required to pay one month's salary in gross.
I am inquiring if any employees have resigned during your tenure. If so, the policy applied to them will also apply to you.
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If there is no mention of lieu payment and the salary is fixed for one month, you are required to pay one month's salary in gross.
I am inquiring if any employees have resigned during your tenure. If so, the policy applied to them will also apply to you.
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Dear Mr. Arun,
You mentioned that your services can be terminated by either party by giving one month's notice to the other party or by making payment in lieu thereof. Therefore, undoubtedly, you are required to pay Rs. 12000 to your employer towards the notice period to be relieved from your services due to your resignation.
In any organization, salary includes not only Basic, DA, and any other allowance, but also the payment of contributions of ESI, PF, gratuity, and bonus. For all other purposes, it refers to the gross salary of the employee, i.e., Rs. 12000 in your case.
Regards,
NVRao
Hyderabad
From India, Hyderabad
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You mentioned that your services can be terminated by either party by giving one month's notice to the other party or by making payment in lieu thereof. Therefore, undoubtedly, you are required to pay Rs. 12000 to your employer towards the notice period to be relieved from your services due to your resignation.
In any organization, salary includes not only Basic, DA, and any other allowance, but also the payment of contributions of ESI, PF, gratuity, and bonus. For all other purposes, it refers to the gross salary of the employee, i.e., Rs. 12000 in your case.
Regards,
NVRao
Hyderabad
From India, Hyderabad
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Company Letter for Completion 01 Month Notice.docx