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Ramaraj Venkatesh (Own Buisness)     16 November 2011

Notice pay recovery

Dear Sir : I have a friend who worked in a Pvt Insurance Company for short period his resignation was accepted on the same day of Resigning but he was been recoverd from his pay as "Notice Pay Recovery" what is the law governing this, were i need to approach to get back my pay

Thanks in Advance



 3 Replies

kameswarao S (Head HR)     17 November 2011

until and unless we know about the notice pay clause in the appointment letter we may not be in a position to comment on the same.

If the management want to relieve the employee on the same day with out any request from the employee then they should not deduct the amount towards notice pay. If the employee writes in his resignation letter to relieve him immediately by deducting the amount towards notice pay is acceptbale otherwise no.

Pl. verify and confirm.

Regards - kamesh

1 Like

Kumar Doab (FIN)     17 November 2011

Mr.Kameswarao has given valuable advice. Kindly follow it.

If the employee submits resignation without mentioning the notice period or effective date of resignation the company may accept it with immediate effect. Since employee has not tendered any notice company can recover notice pay.

Usually this is the trick/technique applied by Pvt. Insurance companies. The employee is asked verbally/on phone by bosses/HR to submit resignation and no notice pay shall be deducted. The ill informed employee becomes a game and is taken for a ride.

If the employee has mentioned period of notice/effective date of resignation in notice of resignation and if the same is accepted before effective date of resignation, it can be termed illegal. If the resignation letter was collected under coercion or by force employee can withdraw the same and lodge a complaint.

It is always better to consult elders in the family, competent and experienced well wishers, lawyer/law firm before signing a document than blindly signing a document without understanding repercussions and repenting later.

1 Like

Nadeem Qureshi (Advocate/ nadeemqureshi1@gmail.com)     18 November 2011

Dear Mr. Readdy

its depend on appointment letter's terms and conditions,

1 Like

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