I worked with a company for 15 months. As per the appointment letter, the notice period was 3 months. Since I gave only 1 month's notice, the company has deducted 2 months' gross salary. Is it not illegal to cut gross salary? The company has paid me only basic salary in lieu of PL encashment. Should not the company deduct only the basic salary for 2 months as notice pay? I understand allowances and perquisites are not counted as salary unless the person actually works and earns it. Hence, in case of PL encashment or notice pay cut, the salary means basic salary. Why does the company then consider gross salary in case of notice pay?
From India, Thana
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Pls avoid using the company name. Read the appt. letter terms on N.Period shortfall recovery as to whether on basic or gross. PL encashment is different from N.Pay. Both can not be correlated. Pon
From India, Lucknow
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616From India, Lucknow
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The appointment letter states just "Salary" in lieu of a shortfall in the notice period. Normally, reputable companies deduct only the basic salary. I will remove the company name by editing the same. However, I thought that CiteHR also tries to convince the said company to adopt good HR practices. Anyway, I will remove the company name now.
From India, Thana
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From India, Thana
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Salary Break Up - Performance Pay.xls