Dear Sirs,
We normally pay salary as basic + DA + HRA + conveyance allowances. When we terminate an executive working under 3 months' notice, what all do we have to pay? Are allowances included? When someone quits without notice, what all do we need to recover? Are allowances also recoverable?
Kindly enlighten.
Regards,
Suresh
From India, Nagpur
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10We normally pay salary as basic + DA + HRA + conveyance allowances. When we terminate an executive working under 3 months' notice, what all do we have to pay? Are allowances included? When someone quits without notice, what all do we need to recover? Are allowances also recoverable?
Kindly enlighten.
Regards,
Suresh
From India, Nagpur
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When he is working during the notice period, he is entitled to all allowances. What is the confusion in it? You are getting the service of the person on notice period, and will it be proper if you deny a part of the salary? It is okay if the matter is like we need to relieve him earlier or he wants to get relieved earlier. In such a situation, normally there will be an agreed norm, i.e., pay basic salary and dearness allowance as notice pay and relieve.
For deciding if anything can be recovered from the salary of an employee who absconds himself without serving the notice period, you have to first describe whether the concerned employee is a worker or a manager. If a worker, check if there is any provision regarding the notice period from a worker in your certified standing orders. If your certified standing orders provide that a worker should give one month/three months' notice before leaving the company and a worker remains absent after having submitted resignation, then whatever pending amounts (like unpaid salary, leave encashment, unpaid bonus, etc.) due to him excepting his gratuity can be adjusted against the notice pay. This will be the case with managers and other executives also. But, on the other hand, if you do not have standing orders of your own and the concerned person is a worker having no supervisory rights, then you cannot deny any amounts due to him. This is because in order to terminate a worker, the employer should give one/three months' notice as per the Industrial Disputes Act, but the Act is silent about the notice from a worker who wishes to leave the employer.
Again, gratuity cannot be adjusted against any sum due, including notice pay, from the employee. This is so in the case of managers and executives also.
Madhu.T.K
From India, Kannur
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For deciding if anything can be recovered from the salary of an employee who absconds himself without serving the notice period, you have to first describe whether the concerned employee is a worker or a manager. If a worker, check if there is any provision regarding the notice period from a worker in your certified standing orders. If your certified standing orders provide that a worker should give one month/three months' notice before leaving the company and a worker remains absent after having submitted resignation, then whatever pending amounts (like unpaid salary, leave encashment, unpaid bonus, etc.) due to him excepting his gratuity can be adjusted against the notice pay. This will be the case with managers and other executives also. But, on the other hand, if you do not have standing orders of your own and the concerned person is a worker having no supervisory rights, then you cannot deny any amounts due to him. This is because in order to terminate a worker, the employer should give one/three months' notice as per the Industrial Disputes Act, but the Act is silent about the notice from a worker who wishes to leave the employer.
Again, gratuity cannot be adjusted against any sum due, including notice pay, from the employee. This is so in the case of managers and executives also.
Madhu.T.K
From India, Kannur
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Even if the Industrial Disputes Act is silent regarding the notice period for workmen, the provisions under Section 30 of the Shops and Establishments Act and similar provisions in other State Acts are applicable due to the lack of provision in the ID Act. Therefore, the payment for that period can be recovered.
From India, New Delhi
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From India, New Delhi
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Notice pay recovery certificate.doc