Notice period deduction
Querist :
Anonymous
(Querist) 01 May 2011
This query is : Resolved
I was working for a small time unlisted company for about 7 months before leaving to join another, as per my appointment letter, there is a clause of serving 30 day notice period, however, no mention of how it would be deducted. there is neither an HR department nor any policy document on it too, on top of that, there was no mention of any amount to be deducted at the time of resignation as well. I served a notice period of 15 days before getting relieved. now they are deducting a 15 day gross salary as my notice shortfall. As per industry standards are they justified in doing so? if not, then what can I do to get my dues back? AS per my knowledge, the notice period should be on basic salary. Please advice if my understanding is correct. thanks
R.Ramachandran
(Expert) 01 May 2011
The culture of notice period, and deduction in lieu of notice period etc., are all opposed to labour laws. This needs to be challenged. But only the affected can challenge it and not others. The affected persons some how other, by weeping and wailing, pay up the notice amount and join the other job. Thus, unless one challenges such practices and get a ruling on the matter, these attrocities would continue.
Having said that, I do not understand as to on what basis you say that if at all only basic pay is to be deducted and not the gross?
Suppose the reverse is the position. The management terminate you without any notice. They have to pay you in lieu of notice period, would you have been satisfied if they offered only basic pay and not the Dearness Allowance etc.?
Querist :
Anonymous
(Querist) 01 May 2011
thanks for the reply and I agree that what I mentioned before was my understanding and not a fact, I have switched 4 organisations in past and each time the new company had re-imbursed the notice payoff, I got a F&F sheet from last organisation where it was mentioned that the notice deduction was on basic salary. Now in this company, there was no such mention of either. my question is when there is a mention of servifn 30 day notice period and NO mention of any deduction if one doesnt, on what grounds can they deduct the entire 15 day salary. what should be my action in the present scenario.
Amit Minocha
(Expert) 01 May 2011
send them a legal notice asking for your dues else complaint to Labour Commissioner
Uma parameswaran
(Expert) 01 May 2011
Yes.You can Send a legal notice as suggested by Expert.Amit
Guest
(Expert) 01 May 2011
Unlisted or list, question has no relevance in terms of employment. If that was unlisted company that comes under the purview of the Sops and Establishment Act of the State concerned.
So, there is no use of sending any notice, as advised by two experts, as deduction of salary/wages for the period short of notice period can be made under the provision o Shops and Establishment Act of the concerned state. However, you if you feel any discriminatory deduction, what is not prescribed under the provisions of the Act, you may better verify about that from the Act, as you have not mentioned about salary your structure.
