Dear Sirs
We normally pay Salary as basic+DA+ HRA + conveyance allowances.
When we terminate an executive working under 3 month's notice, what all we have to pay.Are allowances included ?
When some one quits without notice, what all we need to recover. Are allowances also recoverable.
Kindly enlighten.
Regards
Suresh
From India, Nagpur
10We normally pay Salary as basic+DA+ HRA + conveyance allowances.
When we terminate an executive working under 3 month's notice, what all we have to pay.Are allowances included ?
When some one quits without notice, what all we need to recover. Are allowances also recoverable.
Kindly enlighten.
Regards
Suresh
From India, Nagpur
When he is working during the notice period he is entitled to all allowances, what is the confusion in it? You are getting the service of the person on notice period and will it be proper if you deny a part of the salary? It is okay if the matter is like we need to relieve him earlier or he wants to get relieved earlier. In such a situation normally there will be an agreed norm, ie, pay basic salary and dearness allowance as notice pay and relieve.
For deciding if any thing can be recovered from the salary of an employee who absconds himself without serving the notice period, you have to first describe whether the concerned employee is a worker or a manager and if a worker if there is any provision regarding notice period from a worker in your certified standing orders. If your certified standing orders provides that a worker should give one month/ three months (!) notice before leaving the company and a worker remains absent after having submitted resignation, then whatever pending amounts( like unpaid salary, leave encashment, unpaid bonus etc) due to him excepting his gratuity can be adjusted against the notice pay. This will be the case with managers and other executives also. But on the other hand, if you do not have a standing orders of your own and the concerned person is a worker having no supervisory rights, then you cannot deny any amounts due to him. This is because in order to terminate a worker the employer should give one/ three months notice as per Industrial Disputes Act but the Act is silent about the notice from a worker who wishes to leave the employer.
Again gratuity cannot be adjusted against any sum due including notice pay from the employee. This is so in the case of managers and executives also.
Madhu.T.K
From India, Kannur
For deciding if any thing can be recovered from the salary of an employee who absconds himself without serving the notice period, you have to first describe whether the concerned employee is a worker or a manager and if a worker if there is any provision regarding notice period from a worker in your certified standing orders. If your certified standing orders provides that a worker should give one month/ three months (!) notice before leaving the company and a worker remains absent after having submitted resignation, then whatever pending amounts( like unpaid salary, leave encashment, unpaid bonus etc) due to him excepting his gratuity can be adjusted against the notice pay. This will be the case with managers and other executives also. But on the other hand, if you do not have a standing orders of your own and the concerned person is a worker having no supervisory rights, then you cannot deny any amounts due to him. This is because in order to terminate a worker the employer should give one/ three months notice as per Industrial Disputes Act but the Act is silent about the notice from a worker who wishes to leave the employer.
Again gratuity cannot be adjusted against any sum due including notice pay from the employee. This is so in the case of managers and executives also.
Madhu.T.K
From India, Kannur
Even if ID Act is silent regarding notice period from workman, yet the provision under section 30 of Shops and Establishment and pari materia provisions in other State Acts are applicable because of silence of provision on it under the ID Act. Thus that period pay can be recovered.
From India, New Delhi
From India, New Delhi
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