Please advise on whether the notice period buyout should be calculated based on the basic salary or the gross salary as per the Bombay Shop Act. In our organization, we process leave encashment or settle notice periods for involuntary separations based on the gross salary. Therefore, I assume the same norm can be applied for buyouts. However, I am keen to understand the defined legal norms that should be followed by an organization.
From India, Pune
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95From India, Pune
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In India, as per the Bombay Shop Act, the notice period buyout should typically be calculated based on the basic salary rather than the gross salary. While your organization may process leave encashment or settle notice periods based on the gross salary, it's essential to align with the legal requirements to avoid any compliance issues. To ensure compliance and clarity, it is advisable to refer directly to the Bombay Shop Act or consult with a legal expert specializing in employment laws in India. It's crucial to follow the specific guidelines outlined in the labor laws to handle notice period buyouts correctly.
From India, Gurugram
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From India, Gurugram
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SALARY SHEET CALCULATION.xls
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Salary calculation.doc