Hi all, I need your assistance with the following calculation.
An employee worked only for 15 days during his notice period. Now, do we pay him 15 days of full salary, and deduct the rest of the notice shortfall from either the basic or gross amount?
Please assist....
From India, Noida
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An employee worked only for 15 days during his notice period. Now, do we pay him 15 days of full salary, and deduct the rest of the notice shortfall from either the basic or gross amount?
Please assist....
From India, Noida
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Dear Monica,
What is the length of the notice period? Is it 1 month or even longer? In the normal course, any shortfall in the notice period will be adjusted from the Earned Leave balance in the employee's credit. In the case of your employee, let us assume the notice period is 1 month. Then, as the employee had worked for only 15 days, the remaining 15 days shortfall may be adjusted by deducting from the Earned Leave in his credit. I hope this is clear.
With regards,
Madhusudan
From India, Vijayawada
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43What is the length of the notice period? Is it 1 month or even longer? In the normal course, any shortfall in the notice period will be adjusted from the Earned Leave balance in the employee's credit. In the case of your employee, let us assume the notice period is 1 month. Then, as the employee had worked for only 15 days, the remaining 15 days shortfall may be adjusted by deducting from the Earned Leave in his credit. I hope this is clear.
With regards,
Madhusudan
From India, Vijayawada
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In addition to what Mr. Madhusudan has replied, what is your notice period clause? If it is one month's salary in lieu of the notice period, then it should be gross salary and not basic. Assuming if the employee would have worked for one month, would you pay only the basic pay or the gross pay.
From India, Ahmadabad
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From India, Ahmadabad
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Shraddhavaan labhate gnanam!
Can you please share any legal inference for adjusting pending leave against a shortfall in notice? My employment contract is silent about any such adjustment, and my company does not adjust for unutilised earned leaves and demands full gross payment.
Thanks in advance
From India, Mumbai
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Can you please share any legal inference for adjusting pending leave against a shortfall in notice? My employment contract is silent about any such adjustment, and my company does not adjust for unutilised earned leaves and demands full gross payment.
Thanks in advance
From India, Mumbai
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In such scenario also ask them to deduct the notice period from your Full and Final Settlement, wherein for any unutilized leave you will be getting encashment.
From India, Ahmadabad
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From India, Ahmadabad
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Shortfall of notice period can be calculated only from basic as per compliance. The formula to calculate it is (Basic * Number of shortfall days) / 26. In case you are waiving off the notice period based on the encashable leaves, the remaining shortfall days can be considered for calculation, if any.
From India, Madras
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From India, Madras
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Hi All,
Can anyone help me?
I am serving a notice period of 90 days in my current company. I want to serve the notice period only for 30 days and want to pay out for 60 days.
So how much do I need to pay out to the company?
As per the offer letter, I need to pay only the basic but am not sure.
My basic per month is 20K and EL is 5.
Please do the needful.
Below is the clause from my Offer Letter and a ticket:
"If early release is accepted by Business, the number of Notice period shortfall days will be recovered from your Full and Final settlement considering the Basic pay."
1. Either party can terminate this employment by serving a notice of 90 days on the other. The Company may, at its absolute discretion, make a payment representing salary (basic) in lieu of notice of termination. However, for causes like misconduct, gross negligence, willful insubordination or disobedience, misbehavior, or non-performance, Tech Mahindra Limited may terminate your services with immediate notice. The Company shall have the right to place you under suspension on subsistence allowance and benefits as applicable pending any investigation into potential dishonesty, gross misconduct, misappropriation, gross negligence, fraud, or other circumstances, which expressly provides for termination of your employment, which if proved, would entitle The Company to dismiss your services summarily.
2. In the event of you serving on The Company a notice of termination of employment by submitting a resignation letter, your release will be governed by the relevant policies in force at that point in time, subject to satisfactory handover of your duties, responsibilities, Company documents, Company assets, etc. to the relevant parties.
3. In the case of Associates who are governed by any other service agreement(s) for serving a minimum stipulated period, the associate will need to mandatorily fulfill the requirements of Clause 3(a) along with applicable exit policy clauses under the stipulated service period agreed to and provided therein.
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Can anyone help me?
I am serving a notice period of 90 days in my current company. I want to serve the notice period only for 30 days and want to pay out for 60 days.
So how much do I need to pay out to the company?
As per the offer letter, I need to pay only the basic but am not sure.
My basic per month is 20K and EL is 5.
Please do the needful.
Below is the clause from my Offer Letter and a ticket:
"If early release is accepted by Business, the number of Notice period shortfall days will be recovered from your Full and Final settlement considering the Basic pay."
1. Either party can terminate this employment by serving a notice of 90 days on the other. The Company may, at its absolute discretion, make a payment representing salary (basic) in lieu of notice of termination. However, for causes like misconduct, gross negligence, willful insubordination or disobedience, misbehavior, or non-performance, Tech Mahindra Limited may terminate your services with immediate notice. The Company shall have the right to place you under suspension on subsistence allowance and benefits as applicable pending any investigation into potential dishonesty, gross misconduct, misappropriation, gross negligence, fraud, or other circumstances, which expressly provides for termination of your employment, which if proved, would entitle The Company to dismiss your services summarily.
2. In the event of you serving on The Company a notice of termination of employment by submitting a resignation letter, your release will be governed by the relevant policies in force at that point in time, subject to satisfactory handover of your duties, responsibilities, Company documents, Company assets, etc. to the relevant parties.
3. In the case of Associates who are governed by any other service agreement(s) for serving a minimum stipulated period, the associate will need to mandatorily fulfill the requirements of Clause 3(a) along with applicable exit policy clauses under the stipulated service period agreed to and provided therein.
Acknowledge(0)Amend(0)CiteHR.AI
(Fact Checked)-The clause from your offer letter indicates that the notice period shortfall will be deducted from your Full and Final settlement based on Basic pay, as mentioned in the offer letter. You would need to pay for the 60 days shortfall based on the Basic pay of 20K per month. Thank you for sharing the details. (1 Acknowledge point)
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Hi, I resigned from a reputed organization stating, "Due to some medical complications with my family, I am not able to concentrate on work, so I decided to take a break in my career. I couldn't continue my work with immediate effect."
I had a discussion with HR and the manager on the same day. As I have genuine reasons, they agreed to the buyout option (I submitted all company properties to HR at the same time).
I am not sure how the buyout is calculated - do I need to pay the gross salary of 3 months or only the basic salary? Please help me here.
Thanks.
From India, Hyderabad
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I had a discussion with HR and the manager on the same day. As I have genuine reasons, they agreed to the buyout option (I submitted all company properties to HR at the same time).
I am not sure how the buyout is calculated - do I need to pay the gross salary of 3 months or only the basic salary? Please help me here.
Thanks.
From India, Hyderabad
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Dear All, We have a policy to complete 3 months and if an employee serves 45 days of notice then what will be the calculation. Regards Ankita
From India, New Delhi
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From India, New Delhi
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(Fact Checked)-The calculation should be based on the actual notice period served. For 45 days served, pay the full salary for those days. Deduct the remaining days from the amount. Thank you for your question. (1 Acknowledge point)
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Hi,
As the employee completes a 45-day notice period, the remaining 45 days of notice are to be deducted from the full and final settlement to be paid to the employee. This deduction is applicable only if this clause is explicitly mentioned in the appointment or employment order.
From India, Madras
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As the employee completes a 45-day notice period, the remaining 45 days of notice are to be deducted from the full and final settlement to be paid to the employee. This deduction is applicable only if this clause is explicitly mentioned in the appointment or employment order.
From India, Madras
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Sir,
If we terminate our contract labor when our job is completed, how many days' notice period shall be paid to that employee, and how should we calculate the same? If we have given notice before work completion, is notice pay applicable or not?
Regards,
Santosh Ku Panda
HR Executive
From India, Bhubaneswar
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If we terminate our contract labor when our job is completed, how many days' notice period shall be paid to that employee, and how should we calculate the same? If we have given notice before work completion, is notice pay applicable or not?
Regards,
Santosh Ku Panda
HR Executive
From India, Bhubaneswar
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CiteHR.AI
(Fact Checked)-The user's reply is correct. They appropriately highlight the importance of considering the notice period clause and paying based on gross salary rather than basic salary. (1 Acknowledge point)