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Vivek (Manager)     09 April 2014

Notice period dues

Hi,

as per my employment letter, I have following term for notice period 

"...you as well as your company has the right to terminate the service with a notice period of 90 days or payment in lieu of the notice period..."

can anyone please guide me what does payment means here? Does that mean Gross salary or basic salary. As per HR it's gross salary however please note that if company terminates they pay only basic salary. Also, if you could guide me on legal actions if they force to go the wrong way

An early response will be appreciated.

 

regards,

vivek



Learning

 3 Replies

Kumar Doab (FIN)     09 April 2014

If employer tenders notice pay @ Basic then it shall be @Basic for employee as well.

Do you have any evidence that employer tenders notice pay @ Basic? If yes quote it and close the matter.

It is not necessary that if notice period mentioned in appointment letter is 90 days it shall be 90 days. Notice period/pay (a part of Service conditions) is stated in standing orders (certified/model) applicable to the establishment and extended to designation of employee and standing orders shall prevail upon appointment letter and any service condition inconsistent with standing orders shall not survive. As per Model standing orders Notice period/pay during probation period is NIL and after confirmation is 1 month.

Notice period/pay is also stated in (Name of state) Shops and Commercial Establishments Act. It is max.1 month.

Designation alone does not decide individual shall be covered as ‘Workman’ as in ID Act and ‘Employee’ as in  (Name of state) Shops and Commercial Establishments Act.

 

Approach your lawyer with copies of all docs on record.

Vivek (Manager)     09 April 2014

Thanks Kumar for the quick response. Ignoring what employer pays, what should payment mean here bais or gross or something else ?

Kumar Doab (FIN)     10 April 2014

Without ignoring anything keep is as ;Same as of employer. Nothing else. 

One approach can be since employer disburses leave encashment, Bonus, Gratuity,OT @ Basic+DA............

 


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