Can notice pay and the cost of assets be recovered from his Bonus dues?

An employee has left the organization without notice and without handing over the company's assets, and his only remaining dues are the statutory bonus for 2016-17.

The query is, can notice pay and the cost of assets be recovered from his bonus dues?

Have you communicated in writing to the last known address of the employee about the amount due towards Notice Pay and non-returning of Company assets? You can recover the dues to the company from the Bonus Amount payable with proper documentation. Please put proper systems in place to avoid such situations in the future.

First of all, send a letter to the employee for the notice period as well as handing over the company asset immediately, or he/she will face legal consequences. After due notices, if the employee fails to return the company asset, please formally file an F.I.R. Then, lastly, you can recover the said money from his bonus if it suffices.

Notice pay is applicable when retrenchment under section 25F of the ID Act is carried out or when resorting to approval petition under section 33(2)(b) of the ID Act is necessary.

For more information, visit: [Lawyers Club India - Notice pay](http://www.lawyersclubindia.com/forum/Notice-pay-2576).

Employees working in industrial establishments or factories receive appointment orders that outline the terms and conditions of employment. When an employee wishes to resign, they must provide notice to the management. Typically, junior cadres give a one-month notice, while senior cadres give two to three months. This allows the management sufficient time to find a replacement. Similarly, if the management decides to terminate an employee, the notice period clause specifies the applicable notice period mentioned earlier. Additionally, the clause may include a provision for payment in lieu of notice. This means that either the employer or the employee can pay an amount equivalent to the notice period instead of serving the notice period after resignation or termination. This clause is crucial and is mandatory in all appointment orders issued by organizations. Appointment orders also detail the salary structure for purposes such as gratuity, bonus, and PF deductions, typically comprising basic pay plus DA. Therefore, the notice pay per month is calculated based on the basic pay alone. Payments and deductions during the notice period are calculated at the basic pay rate, excluding allowances. In the case mentioned, the basic pay of Rs.10,000/- is considered for notice pay calculations.

Yes, recovery can be made from the bonus. Prepare full and final settlement. Send a letter for payment of dues along with FnF statement.

If an employee has been absent for the last 15 days or more without informing us, we typically send them a notice for absenteeism. Does anyone have a notice format that we can use to remove the employee's name from our company muster with just one notice in a legal manner?

Dear Rashmita,

If an employee is separated from the organization, the initial step should be to issue a show cause notice for their absenteeism from the workplace. Even if there is no response to the show cause notice, you may proceed with termination following a proper inquiry and the preparation of a chargesheet against the employee. Subsequently, you can process the employee's full and final settlement details, and if necessary, deduct any bonus dues for recovery. In case of a shortfall in the amount, you are authorized to send recovery letters to the employee's registered address at regular intervals. After the issuance of three such letters, you have the option to pursue legal action and file a lawsuit against the individual.

Please let me know if you require any further assistance or clarification.

Best regards,
[Your Name]