Notice Period Calculation - Appointment Letter

Hi Dear All,

I have just resigned from my company because of some family/personal reasons after 10 months of service. I did not give any notice period (one month) to my company. Now, I got an FNF letter saying that I have to pay Rs. 15,000 to the company since I have not served the notice period. In the FNF, the company has considered my 19 PL as Basic Salary for adjustment, and for the notice period amount, they have calculated it as Gross Salary. Is this correct as per Maharashtra Labor Law?

In my appointment letter, it is mentioned that I have to pay one month's salary if I do not give the notice period, but it is not specified whether it should be Gross or Basic. Please suggest me.

Regards,
Sujit

Normally, an appointment letter clearly states whether the salary is based on basic or gross pay. If the letter simply mentions "salary," it implies gross salary only.

Pon, Chennai

Thank you, pon1965,

If it is the gross salary, then how can they consider PL adjustment as the Basic salary? This is also not mentioned anywhere in the Appointment Letter. Is it correct? Please comment.

Thanks once again.

Rule should be the same for recovery also. They should consider gross salary for PL adjustments towards the shortfall. They are trying to exploit you. Explain and express your non-acceptance of the unilateral calculation.

Pon

Dear Sujit,

There are no specific rules for encashment of leaves. Companies prepare their own rules for this purpose. In most cases, companies process encashment at the time of full and final settlement based on the basic salary only. This is because many employees do not take paid leave and choose to accumulate them for encashment. The accumulation of leave is typically limited to a fixed number, which varies from state to state. Since the benefit of paid leave was not utilized in time, encashment is calculated based on the basic salary.

I hope this information is helpful for you.