vrush2006
Hi everyone.
On Resignation of an employee without a notice period, what is the basis on which the recovery is calculated. Is it at the rate of basic salary or complete salary for the month.
thanks
vrush

From India, Pune
parashar
24

It all depends on company policy. However, to ascertain the monetary value of recovery in case of non-submission of resignation; the simple way out is to check how do you pay the notice pay to employees. If you have not come across such instance of paying the notice period; then you can either adopt principle of deducting and paying on Basic (i.e. basic plus DA or VDA) or on gross salary (i.e. what you pay on salary slip; basic salary inclusive of all allowances and not re-imbursements).
From India, Delhi
sushantsinha81
Though it depends on the company policy however normally the recovery is calculated on the basis of basic+da for the unserved notice period. Sushant.
From India, Mumbai
martin_dd
Dear friend,
It purely depends on company's policy or procedure. In some companies they will deduct from Basic and DA and in some companies they will deduct it from gross. But if you look at in majority companies, though they don't have any on this and they have the procedure that they will deduct it from basic and da.
Rds,
Martin


Z S DABAS
5

dear vrush,
One thing that already had been cleared is that you have to keep a policy for basic and DA OR gross, whether you want to give somebody or deduct from some body as notice pay.
Second thing I want to pointed out please check up from appointment letter the terms and condition mentioned "after expired of probation period " gross salary, basic salary or only salary has to be deducted or given"
Regards
Dabas

From India, Delhi
HoJha
Please consider an employee's leave account and make the necessary adjustments with the notice period before you calculate any monetary benefits.
Some companies have even asked an employee to repay dues to the company if the employee insists on leaving before the notice period is completed. This is usually done at the discretion of the management. In such cases an employee does not challenge the company's decision though there is no clause in the Appointment letter to allow the company collect such dues. This may be an interesting issue to discuss in this forum. Let the discussion begin!

From India, Chennai
parashar
24

Normally that is not a good practice to do. Yes! I have also encountered such instances where the employer insisted upon depositing the money reimbursed on Transportation, Travelling Tickets etc.
I think that is where an understanding has to be clear in the beginging to avoid such shocking news to an employee who is separating by not giving proper notice period.
That is all what a company wants its reputaion to be created.....best employer image or best place to work or.........???
More so it depends on HR person-in-charge to advise the management in right direction than taking pain and unnecessary rubbing his shoulders around.
Manoj

From India, Delhi
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