I worked with a company for 15 months. As per appointment letter the notice period was 3 months. Since I gave only 1 months notice, the company has deducted 2 months Gross salary. Is it not illegal to cut gross salary? The company has paid me only basic salary in lieu of PL encashment. Should not the company deduct only the Basic salary for 2 months as notice pay? I understand allowances and perquisites are not counted as salary unless the person actually works and earns it. Hence incase of PL encashment or Notice pay cut, the salary means basic salary. Why the company then considers gross salary incase of notice pay?
From India, Thana
Pls avoid using the company name. Read the appt. letter terms on N.Period shortfall recovery as to whether on basic or gross. PL encashment is different from N.Pay. Both can not be correlated. Pon
From India, Lucknow
The appointment letter says just "Salary", in lieu of shortfall in notice period. Normally good companies deduct only basic salary.
Will remove the company name by editting the same. But, I thought , the citeHR also tries to convince the said company for good HR practices. Anyway will remove the company name now.

From India, Thana
Since its mentioned only "Salary" in the offer letter it refers to Gross salary.. As far as I know the Notice Pay recovery is on Gross salary in many companies (where I have worked).
From India, Mumbai
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