Jay (PCE) 16 November 2010

Final Settlement Problem while seperation from company

Hi,

I work for an MNC in chennai. Now that i have got a better offer i have submitted my formal resignation giving them a notice period of 40 days. As per my appoinment order, i have to serve a notice period of 3 months or else i have to pay my gross salary equivalant to my unserved notice period. since i have given them 40 days notice the company asks me to pay the gross salary for the remaining 50 days.

My salary break up contains Basic, HRA, Conveyance, Medical allowance, Educational Allowance, Special Allowance, LTA, PF, Superannuation, Ex Gratia ( Detuction from salary and will be paid as bonus at year end)

1) Why should i pay my gross salary for the remaining notice period? since all other items are applicable only when i am in the role of the organisation.

2) I have an previlage leave of about 40 days, which the company has to pay me. They are not willing to adjust the PL for the balance notice period. They say they will be paying the basic salary for the 40 days of PL, while i have to pay the gross salary for 50 days of unserved notice.

3) Company has detucted around Rs.12000/- in my first year salary as a security deposit in case i will be leaving the concern with in 4 years. I am quiting by 3 years and 7 months. Does this security deposit has any role to play with respect to payment from my end for the unserved notice period.

Will i be eligible for any kind of legal action in case the company stronlgy demands to pay the gross salary instead of basic for the unserved notice period.

The company doesnt have any clear justification or written policies indicating clearly why we need to pay gross instead of basic salary??

Kindly provide me your opinions in this regard.

Awaiting the reponse at the earliest.

Regards,

Reply Follow

4 Replies

V. VASUDEVAN (LEGAL COUNSEL) 16 November 2010

There can't be two yard sticks one for the company and another for the employee. In any case, the amount payable in lieu period is always the basic pay and no allowance needs to be paid. Please make a statement of your claim, listing down your entitlements, including leave pay - set off the amount payable by you towards notice period and lodge with a simple letter with the management. They are bound to consider this statement. If they refuse to accept this by hand, serve this on the HR Manager & the CEO by separate copies, by speed post with acknowledgement due. This should yield fair results.

vasudevan

2 Like

Jay (PCE) 17 November 2010

Thanks Mr.Vasudevan. Will surely consider your suggestion in case they the company demands the gross pay even after my formal request.

Regards,

Jay

Namit (engineer) 19 November 2010

Sir,

I have resigned from organization on 11 month of my joining date. I am serving a notice period of 2 months.
I am told by HR that PL is application only after 12 months of service but since I have put up my papers before 12 months I am not entitled for PL encashment. I have checked the company employee handbook for any such clause but couldnt find. Please advice what is correct and give me any reference to law that is applicable in this case. I work in Gurgaon in an engineering firm.

Thanks & Regards
Namit