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Hi, If an employee only served 24 days out of the 90-day notice period. And the 24 days salary on hold, how to calculate now for recovery the remaining notice period amount. Can anyone please suggest?
From India, Hyderabad


Out of total notice period of 90 days employee already served 24 days notice period. You have his/her 24 days salary on hold. So please check with the employee whether he/she is willing to forfeit 24 days salary in lieu of balance notice period. If so out 90 days notice 48 days notice is fulfilled by the employee. Balance 42 days of notice employee either need to serve notice period or make payment in lieu of balance 42 days notice period. While collecting salary in lieu of notice period it has to be calculated on the gross earnings of the employee.

From India, Madras

Calculate the salary for the days he has worked, ie, 24 days. Take the notional salary for 90 days/ three months. Deduct the salary payable for 24 days from the notional salary for three months and pay it.

Remember that even when there is a clause that the employee should serve 90 days' notice or pay salary in lieu of that notice, you are not expected to hold the salary for the days an employee worked. You can collect the notice pay, if the law allows, but you cannot hold the salary earned by an employee. Also remember that an employee coming under the scope of Industrial Disputes Act need not give you any notice while he leaves the company whereas in order to terminate an employee you have to give notice. Therefore, when demanding notice pay or recovering notice pay or adjusting the notice pay from the salary due, you should remember these things.

From India, Kannur
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