Hi, this is Sneha. Can anyone please tell me if the salary paid during the notice period is the gross salary or if only the basic salary is given (excluding conveyance & HRA)? Also, please mention under which section of the Shop & Establishment Act it is written.
From India, Calcutta
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2From India, Calcutta
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Termination of Employment under A.P. Shops and Establishment Act
The relevant clause under the A.P. Shops and Establishment Act states that:
Termination of Services
Sec 47(1) - Termination in cases where an employee has 6 months or one year of service. No employee with continuous service for 6 months can be terminated without one month's notice or payment in lieu of notice. Additionally, for an employee with continuous service of one year, service compensation equivalent to 15 days' wages must be paid.
Eligibility for Service Compensation
Apart from receiving payment in lieu of the notice period, if no notice is given, the terminated employee is entitled to service compensation as per Sec 47(3). Eligibility of service compensation: An employee with continuous service of not less than one year is eligible for service compensation at the rate of 15 days' wages for every completed year of service. Employees are also eligible for service compensation in the following circumstances:
- Voluntary cessation of work upon reaching the superannuation age of 60 years
- Physical or mental infirmity
- Resignation
- Death or disablement
Here, the term "salary" refers to gross salary only. The employer is required to pay one month's gross salary in lieu of the notice period to terminate the services of the employee if proper notice was not provided for the termination of services.
Regards,
N.V. Rao
Tanuku
From India, Hyderabad
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The relevant clause under the A.P. Shops and Establishment Act states that:
Termination of Services
Sec 47(1) - Termination in cases where an employee has 6 months or one year of service. No employee with continuous service for 6 months can be terminated without one month's notice or payment in lieu of notice. Additionally, for an employee with continuous service of one year, service compensation equivalent to 15 days' wages must be paid.
Eligibility for Service Compensation
Apart from receiving payment in lieu of the notice period, if no notice is given, the terminated employee is entitled to service compensation as per Sec 47(3). Eligibility of service compensation: An employee with continuous service of not less than one year is eligible for service compensation at the rate of 15 days' wages for every completed year of service. Employees are also eligible for service compensation in the following circumstances:
- Voluntary cessation of work upon reaching the superannuation age of 60 years
- Physical or mental infirmity
- Resignation
- Death or disablement
Here, the term "salary" refers to gross salary only. The employer is required to pay one month's gross salary in lieu of the notice period to terminate the services of the employee if proper notice was not provided for the termination of services.
Regards,
N.V. Rao
Tanuku
From India, Hyderabad
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Brief Kerla Shop & Establishment Act.pdf