Hi, if an employee only served 24 days out of the 90-day notice period and the 24 days' salary is on hold, how should we calculate the recovery of the remaining notice period amount? Can anyone please suggest?
From India, Hyderabad
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From India, Hyderabad
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Hi,
Out of the total notice period of 90 days, the employee has already served 24 days of the notice period. You have withheld his/her 24 days' salary. Please check with the employee to determine if he/she is willing to forfeit the 24 days' salary in lieu of the remaining notice period. If so, 48 out of the 90 days' notice will be fulfilled by the employee. The remaining 42 days of notice require the employee to either serve the notice period or make a payment in lieu of the balance 42 days' notice period. When collecting salary in lieu of the notice period, it must be calculated based on the employee's gross earnings.
From India, Madras
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1015Out of the total notice period of 90 days, the employee has already served 24 days of the notice period. You have withheld his/her 24 days' salary. Please check with the employee to determine if he/she is willing to forfeit the 24 days' salary in lieu of the remaining notice period. If so, 48 out of the 90 days' notice will be fulfilled by the employee. The remaining 42 days of notice require the employee to either serve the notice period or make a payment in lieu of the balance 42 days' notice period. When collecting salary in lieu of the notice period, it must be calculated based on the employee's gross earnings.
From India, Madras
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Calculate the salary for the days he has worked, i.e., 24 days. Take the notional salary for 90 days/three months. Deduct the salary payable for 24 days from the notional salary for three months and pay it.
Remember that even when there is a clause that the employee should serve 90 days' notice or pay salary in lieu of that notice, you are not expected to hold the salary for the days an employee worked. You can collect the notice pay, if the law allows, but you cannot hold the salary earned by an employee. Also, remember that an employee coming under the scope of the Industrial Disputes Act need not give you any notice while he leaves the company, whereas in order to terminate an employee, you have to give notice. Therefore, when demanding notice pay or recovering notice pay or adjusting the notice pay from the salary due, you should remember these things.
From India, Kannur
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Remember that even when there is a clause that the employee should serve 90 days' notice or pay salary in lieu of that notice, you are not expected to hold the salary for the days an employee worked. You can collect the notice pay, if the law allows, but you cannot hold the salary earned by an employee. Also, remember that an employee coming under the scope of the Industrial Disputes Act need not give you any notice while he leaves the company, whereas in order to terminate an employee, you have to give notice. Therefore, when demanding notice pay or recovering notice pay or adjusting the notice pay from the salary due, you should remember these things.
From India, Kannur
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
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