Hi all,
I have an offer from another firm, and they would like me to join them ASAP.
I don't want to serve the notice period of one month in my current organization as my prospective employers cannot wait for that long. I put down my resignation today and had a word with my HR manager regarding this, and she asked me to write down on a piece of paper that I'm ready to pay one month's salary in lieu of the notice period, which I did. I inquired regarding the amount that I have to pay off in lieu of the notice period, and she said it would be my gross salary as mentioned in my offer letter.
Now, what I'm confused about is:
1) How should I calculate the amount that I need to pay them? Should it be one month's basic salary (Rs. 5000) or one month's gross salary (Rs. 16750)?
The terms and conditions in my offer letter state: "If you wish to resign from the services of the company during the period of your contractual services with us, you are liable to give one month notice in advance to the management or pay a sum equivalent to your one month's salary in lieu of notice." Now here they have not specified whether the one-month salary is the gross or basic, and hence the confusion.
2) My prospective employers are understanding and have waived off the requirement of me submitting my experience letter/resignation acceptance letter from my current firm. Should I just not bother about paying the one month's salary in lieu of the notice period as I don't require the experience letter/resignation acceptance letter? What can be the consequences? Can my current organization take legal action on this basis to claim the money?
3) Suppose I do pay them and do the full and final settlement. I have 12 PL's left to be encashed. I am not sure how the PL's are going to be encashed, i.e., whether on the basic salary or the gross salary or the take-home salary. I guess if the pay in lieu of notice period is going to be on the basic pay, then the PL's will be encashed on basic pay, and if it's on the gross pay, then the PL's will be encashed on gross pay... let me know if this is correct.
4) If I decide to pay them off, my full and final settlement will include me paying them and them encashing my PL's. Now, should the full and final settlement include the eight days I have worked for so far in this month, or can they decide not to pay me for the eight days I have worked for?
I know this is a very long query... but please help me out here.
Thanks,
Sanal
From India, Vadodara
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I have an offer from another firm, and they would like me to join them ASAP.
I don't want to serve the notice period of one month in my current organization as my prospective employers cannot wait for that long. I put down my resignation today and had a word with my HR manager regarding this, and she asked me to write down on a piece of paper that I'm ready to pay one month's salary in lieu of the notice period, which I did. I inquired regarding the amount that I have to pay off in lieu of the notice period, and she said it would be my gross salary as mentioned in my offer letter.
Now, what I'm confused about is:
1) How should I calculate the amount that I need to pay them? Should it be one month's basic salary (Rs. 5000) or one month's gross salary (Rs. 16750)?
The terms and conditions in my offer letter state: "If you wish to resign from the services of the company during the period of your contractual services with us, you are liable to give one month notice in advance to the management or pay a sum equivalent to your one month's salary in lieu of notice." Now here they have not specified whether the one-month salary is the gross or basic, and hence the confusion.
2) My prospective employers are understanding and have waived off the requirement of me submitting my experience letter/resignation acceptance letter from my current firm. Should I just not bother about paying the one month's salary in lieu of the notice period as I don't require the experience letter/resignation acceptance letter? What can be the consequences? Can my current organization take legal action on this basis to claim the money?
3) Suppose I do pay them and do the full and final settlement. I have 12 PL's left to be encashed. I am not sure how the PL's are going to be encashed, i.e., whether on the basic salary or the gross salary or the take-home salary. I guess if the pay in lieu of notice period is going to be on the basic pay, then the PL's will be encashed on basic pay, and if it's on the gross pay, then the PL's will be encashed on gross pay... let me know if this is correct.
4) If I decide to pay them off, my full and final settlement will include me paying them and them encashing my PL's. Now, should the full and final settlement include the eight days I have worked for so far in this month, or can they decide not to pay me for the eight days I have worked for?
I know this is a very long query... but please help me out here.
Thanks,
Sanal
From India, Vadodara
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hi you have to pay gross salary of 1 month to the company .... but since you have 12 days of earned leave you can pay only 18 days salary and do the settlement. Regards, Gaurav
From India, Vadodara
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3From India, Vadodara
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Hi,
1. As per the terms, you have to pay one month's gross salary.
2. Your remaining 12 PLs will be encashed based on the basic pay.
3. Gaurav's suggestion that the 12 PLs can be considered, and you can pay for 18 days is not feasible, as per my understanding.
Sanju
From India, Hyderabad
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1. As per the terms, you have to pay one month's gross salary.
2. Your remaining 12 PLs will be encashed based on the basic pay.
3. Gaurav's suggestion that the 12 PLs can be considered, and you can pay for 18 days is not feasible, as per my understanding.
Sanju
From India, Hyderabad
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Hi Sanju,
Well, it depends on the company! I had encountered the same issue earlier, and the company accepted it. It's not an argument, but what if I put in 12 days of PL leave and once it gets accepted, I submit my papers on the same day; then, the 12 days are considered in the notice period. Some companies do accept earned leave in calculating the notice period, but encashment will only happen on the basic salary, no matter what.
Regards,
Gaurav
From India, Vadodara
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Well, it depends on the company! I had encountered the same issue earlier, and the company accepted it. It's not an argument, but what if I put in 12 days of PL leave and once it gets accepted, I submit my papers on the same day; then, the 12 days are considered in the notice period. Some companies do accept earned leave in calculating the notice period, but encashment will only happen on the basic salary, no matter what.
Regards,
Gaurav
From India, Vadodara
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Full n final settlement.doc