Compensation against notice period


First i would like to thank for the person who started this forum.

My query is regarding my settlement after leaving the company.

As per terms in my previous organization Notice period was three months, falling which employee/company should pay salary for short notice period.

I gave notice for one month and now in settlement letter company is asking to pay complete CTC for two months, where as per my understanding salary should be just basic salary not CTC.

I would like to ask, is there any law supports on seperation of employee from organization and can i take any stand against there settlement letter on asking CTC to me inspite of basic salary.


Kindly check your appointment letter and terms of separation/notice pay agreed upon by you.

You should apply your rapport, persuasion, persistence, negotiation, reasoning skills and convince your line management, HR, good offices of your appointing authority, MD, CEO, Head-HR, Company Secretary and achieve the results desired by you. This is the quickest and easiest solution.

You may offer basic salary + DA, in writing under acknowledgment and obtain a written reply.

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Pls. look into the attachment.

Attached File : 60926 235419 2 what is correct notice pay basic pay or gross pay or ctc.doc downloaded 265 times

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if a company forcefully saying that you will have to serve your notice period and they ary not giving relieving and the employee is unble to serve notice period and also ready to pay for it.He has given this in this in writing but still they are not giving relieving.So in this caee wha t can be done


Relieving letter is issued post all settlements. Employer may/can sit over it. Employer may but can not block supply of work experience/service certificate, FNF statement, last salary slip, acknowledgment of company property and handing over the charge.

Employee should settle all dues to be settled from his end e.g. submission of notice of resignation with effective date of resignation clearly mentioned in it and a gentle request in writing to inform him to whom charge should be handed over and charge should be taken from him within effective date of resignation, to whom company property should be handed over and submission of company property under proper acknowledgment, and a written request that advance/imprested cash  if any/notice pay mat be adjusted in FNF statement. Employee must mention that he/she is willing to train any employee designated as replacement within and up to effective date of resignation, and should cooperate, thus leaving no room for company to charge him/her on any count.

The employee can mention FNF statement may be provided to enable him to make the payment if any by him to company. The employee may also prepare and submit a list of payables by him to company and list of payables by company to him and ask the company to supply a duly certified/verified copy to him to avoid loss of time and funds by both parties.

If the company desires so company may communicate that notice pay is to be tendered by employee first by cash/cheque/DD and employee can a take a call on this and may accept or insist that he shall tender it post receipt of FNF statement only.

Work experience/service certificate, FNF statement, settlement of dues, last salary slip, acknowledgment of company property and handing over the charge, may suffice to be as good as relieving letter. The next employer may absorb on the strength of these or at the mot may ask to submit an affidavit the employee is not employed elsewhere.

Once these are issued employee can chase the employer to issue relieving letter also and if all representations fail legal recourse is the last option which may include o/o Labor commissioner depending upon the profile o the employee.

In today’s business environment employee needs to develop and apply exceptional reasoning, negotiation, persistence, persuasion, rapport building skills.




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