Dear Friends,
Last month, we terminated one of the workers in our company to reduce manpower. We now need to settle their Full and Final (F&F) dues.
Notice Pay Calculation
I have a question: Do we need to provide notice pay equivalent to one month's salary? If so, should this notice pay be calculated based on the gross salary or the basic salary plus Dearness Allowance (DA)?
Could you please provide an easy example to illustrate this?
Thanks in advance.
Regards,
Venkatesh J
From India, Madras
Acknowledge(0)
Amend(0)
3Last month, we terminated one of the workers in our company to reduce manpower. We now need to settle their Full and Final (F&F) dues.
Notice Pay Calculation
I have a question: Do we need to provide notice pay equivalent to one month's salary? If so, should this notice pay be calculated based on the gross salary or the basic salary plus Dearness Allowance (DA)?
Could you please provide an easy example to illustrate this?
Thanks in advance.
Regards,
Venkatesh J
From India, Madras
Acknowledge(0)Amend(0)
Notice Pay Calculation
The notice pay shall be based on the gross salary, i.e., Basic + DA + HRA + Conveyance allowance + any other allowance = total, unless the contract itself defines notice pay otherwise.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(1)Amend(0)
The notice pay shall be based on the gross salary, i.e., Basic + DA + HRA + Conveyance allowance + any other allowance = total, unless the contract itself defines notice pay otherwise.
Regards,
B. Saikumar
HR & Labour Law Advisor
Mumbai
From India, Mumbai
Acknowledge(1)Amend(0)
If no appointment letter is issued by an employer and an employee's appointment is suddenly terminated verbally, can management pay notice pay only on the basic pay from the date of verbal notice? Is there any relevant leading case law on an identical matter?
From India, Delhi
Acknowledge(0)Amend(0)
From India, Delhi
Acknowledge(0)Amend(0)
There is no fixed rule followed by people; it depends on:
1. What is your current practice.
2. What are the terms & conditions defined in the appointment letter.
- Few companies pay on gross salary.
- Some companies pay basic + DA + HRA.
- Some companies pay basic + DA only.
From India, Mumbai
Acknowledge(0)Amend(0)
1. What is your current practice.
2. What are the terms & conditions defined in the appointment letter.
- Few companies pay on gross salary.
- Some companies pay basic + DA + HRA.
- Some companies pay basic + DA only.
From India, Mumbai
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Full n final settlement.doc