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BHAVAN (MANAGER HR & ADMIN)     30 June 2012

Recovery of notice salary

Dear Seniors,

I need one clarification about recovering notice salary.

If an employee doesn't give the required notice for separation and leave the company, whether the company can recover the notice salary from a) Leave encashment payable b) allowances part of CTC payable c) salary withheld since the employee has submitted the resignation d) salary for the no. of days worked during the notice period.

The employee has been communicated about the 3months' notice salary clause and he has accepted this without any reservation at the time of appointment.

Kindly give your valued opinion.  Also let me know whether there is any court ruling in such matters and if so from where I can get that.

Regards

Bhavan

 

 

 



Learning

 2 Replies

Kumar Doab (FIN)     30 June 2012

Employer can recover notice pay from payables. The purpose of FNF statement is compute payables by company to employee and by employee to company.

You have wisely not mentioned adjustment from PF and Gratuity. If your company encashes leave on the basis of Basic+DA the same may be applied to notice pay.

You may comply with Industrial Employment Standing orders Act, SE Act if these are applicable to your establishment.

Valuable advice of learned experts/members is sought.

shiv (AGM)     01 July 2012

Dear HR manager,

Company can recover notice salary. but you should giove to employee a reasonble notice mentioning your contract terms and cause. failing thereby file recovery suit in civil court.and damages.

GM-legal-Mumbai-0730-3134711


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