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Joana (Writer)     13 November 2014

Notice period pay out

I resigned from my organization and does not want  to serve the entire notice period due to some circumstances. I am ready to go for a buy out option. But my organization is asking me to pay the entire gross amount. The explanation they gave is that during notice period they are paying us Gross salary, so we need to be giving then gross. I definitely don't want to pay the gross. I guess its only the Basic that we are supposed to pay. Please help me on this.

Our service agreement says" Either 90 days of notice period, or salary in lieu of that."

Additionally, My new salary came effect from September 1, I got the appraisal letters in October and the effective salary only after I resigned. I resigned by October mid.

So what all should be considered while going for buy out?



Learning

 2 Replies

Kumar Doab (FIN)     14 November 2014

1. First thing first: The notice period of 90 days may not be necesswarily applicable in your case. If it is commercial establishment and you are covered by the def.of employee as in Shops and Commercial Establishment Act the notice period/pay shall be governed by this Act.In no state it is more than 30 days as per tenure of service. The rate of notice pay is also defined in the Act. 2. If revised salary has been paid wef September then it is applicable.

Kumar Doab (FIN)     14 November 2014

If standing orders (Model/Certified) are applicable to establishment and you then notice period/pay shall apply according to standing orders. During probation period it is MIL after confirmation 30 days only...

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