Dear All,
I am working as HRD officer and have to do Full and Final Settlement for 4 quit employees. My Question is in Full and Final Settlement, Is Notice Pay Recovery on Gross Base or on Basic? also need to know according to which defination or Act this Notice Pay deduction happens?
From India, Ahmadabad
73I am working as HRD officer and have to do Full and Final Settlement for 4 quit employees. My Question is in Full and Final Settlement, Is Notice Pay Recovery on Gross Base or on Basic? also need to know according to which defination or Act this Notice Pay deduction happens?
From India, Ahmadabad
Hi,
The notice pay deduction has to be done on the basis of your company's terms & conditions of Employment & this is only the basic one and not gross. In some case it is the fixed part of the salary ( i.e Basic +HRA).Find out for a clause in the appointment letter issued to that employee at the time of joining and then do as mentioned there.
Regards
Raul.
From India, Madras
The notice pay deduction has to be done on the basis of your company's terms & conditions of Employment & this is only the basic one and not gross. In some case it is the fixed part of the salary ( i.e Basic +HRA).Find out for a clause in the appointment letter issued to that employee at the time of joining and then do as mentioned there.
Regards
Raul.
From India, Madras
Hi Mr. Bhardwaj,
The Clause Must have been mentioned in contract of the employee before going for any deduction.
Generaly It is Gross Salary which is being deducted from full & Final but again waht is ur company policy u must go throgh.
thanks,
Rahul
From India, Delhi
The Clause Must have been mentioned in contract of the employee before going for any deduction.
Generaly It is Gross Salary which is being deducted from full & Final but again waht is ur company policy u must go throgh.
thanks,
Rahul
From India, Delhi
Mr. Bhardwaj
The payment of the salary and deduction of salary toward the notice pay is solely governed by the terms and conditions of the appointment of the concerned employee and as and when modified by the company from time to time.
Generally there is provision for deducting the gross salary towards the notice period, you may go thru the terms and conditions of appointment and take the further action accordingly.
I hope I have clarified you query.
Thanks
UMESH KAPOOR
From India, Mumbai
The payment of the salary and deduction of salary toward the notice pay is solely governed by the terms and conditions of the appointment of the concerned employee and as and when modified by the company from time to time.
Generally there is provision for deducting the gross salary towards the notice period, you may go thru the terms and conditions of appointment and take the further action accordingly.
I hope I have clarified you query.
Thanks
UMESH KAPOOR
From India, Mumbai
Pay means basic pay, personal pay if any, officiating pay, if any and DA. So notice pay as mentioned in offer is calculated on Basic plus DA only. These are applicable in Govt. Sector, Semi Govt. Sectors. For definition of pay refer clause 19 of swamy's copmpilation of FRSR popularly known as FR rules. In private sectors definition of pay may be different. So recovery in lieu of notice pay will be different.
From India, Calcutta
From India, Calcutta
The term Notice Pay has not been defined by any Labour Act in the sence it is referred to in the present discussion. If you take the ID Act, there is mention about "notice" to be served by an employer to retrench/ discharge an employee or close down an undertaking. It depends upon the size of the undertaking, whether employing 50/ 100 or more than 100 and applicability of chapter V B of the ID Act. Even in these cases, payment in luie of notice means Basic Wages + Dearness Allowance (the same which is taken for Gratuity calculation, Retrenchment pay compensation etc) Therefore, the notice pay on the part of employees shall also mean the same, ie, Basic + DA.
However to be specefic it is advisable to refer to the Standing Orders of the company.
Regards,
Madhu.T.K
From India, Kannur
However to be specefic it is advisable to refer to the Standing Orders of the company.
Regards,
Madhu.T.K
From India, Kannur
Hi
T K Mahu is absolutely right. But you do not need to look at Standing Orders. ID Act defines Notice ofr retrenchment. Same cluse is generally given in Standing Orders as well. Notice Pay. Leave Encashment, PF, Gratuity are all calculated on Basic plus DA
This is applicable to those who are covered under ID Act
Others who are not covered under ID Act are covered by Service Conditions and terms of employment and some of the old companies even today provide specific clause saying that Notice is on bassic plus DA
AIt is better provide such clause to avoid confusion in all letters for those who are not covered under ID Act
Siva
From India, Chennai
T K Mahu is absolutely right. But you do not need to look at Standing Orders. ID Act defines Notice ofr retrenchment. Same cluse is generally given in Standing Orders as well. Notice Pay. Leave Encashment, PF, Gratuity are all calculated on Basic plus DA
This is applicable to those who are covered under ID Act
Others who are not covered under ID Act are covered by Service Conditions and terms of employment and some of the old companies even today provide specific clause saying that Notice is on bassic plus DA
AIt is better provide such clause to avoid confusion in all letters for those who are not covered under ID Act
Siva
From India, Chennai
Notice pay(basic plus da) is required to be paid by incumbant employee only when he has not given notice and leaving the organisation instantly. Suppose in the terms and conditions of his employment he has to give notice of one month and he ask his release after one month from today he need not have to pay notice pay. In case he ask release after 20 days from today he has to pay for ten days only. But when he ask to be released tomorrow itself he has to give pay of one month. The concept of notice pay came into existence with the concept to prevent the employee from leaving the company without handing over his assignment to other substitute or clearing his liability. It is on discretion of management to release him even without recovering notice pay when it is in the interest of the employer.
From India, Calcutta
From India, Calcutta
Hi ,
Small clarification on notice pay to employee ..
In appointment letter -
For Probationary employees given 30 days notice of pay
and clearly mentioned for conformation employees 60 days of basic pay on either side ..
But for probationary employees in gross or basic should be deducted ?
Regards
Naren
From India, Salem
Small clarification on notice pay to employee ..
In appointment letter -
For Probationary employees given 30 days notice of pay
and clearly mentioned for conformation employees 60 days of basic pay on either side ..
But for probationary employees in gross or basic should be deducted ?
Regards
Naren
From India, Salem
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