Jay (Team Member) 11 September 2009

Resignation

Hello, I am working in a BPO in Mumbai and i have resigned with the notice period of 1 month. As our company's policy is to serve notice period of 2 months or pay in lieu of the same. So i am going to work for 1 month and pay them for 1 month. However, my issue is that they are asking to pay the FULL CTC and NOT ONLY BASIC amount. They say that its their company's policy.

I have heard that in this case i am liable to pay only BASIC amount and NOT FULL CTC. I would like to know that can anything be done in this matter.

I dont know exactly whether they have taken this in writing from us or not. However, what if yes or no? If yes, then does company rule applies or govt. rule overwrite the same irrespect of them mentioning this in their agreement.

Please Advise.

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6 Replies

PJANARDHANA REDDY (ADVOCATE & DIRECTOR) 11 September 2009

THE TERMINATION/REG/DISMISAL POLICY IS DEPENDS UPON IND COMPNY, ANY U CAN ASK FOR BASIC OR SALARY (BASIC+DA) AS GENERAL RULE.

Suresh C Mishra (advocate) 12 September 2009

yes i am also agree with Mr P Janardhana Reddy .

P.ESAKKIMUTHU (LABOUR CONSULTANT) 14 September 2009

normally month salary means full salary including basic ,DA and other allowances.

GUDAKESH (LAW OFFICER) 22 September 2009

The purpose notice period is to make sure by the employer that its fuctioning does not get hindered due to sudden resignattion of its employees. Therefore all you are required to do complete all you in process tasks before date of discontinuation of service. if you do so you can very well ask your employer to waive off the salary or CTC you are required to pay in lieu of notice period. If the employer disagrees you can certainly ask you employer to explain for what you are required to pay. Do thay intend to penalise you for resigning from their services. If yes their action is illegal and arbitrary. If no payment to be made by you in lieu of notice period is to be waived off.

Amardeep Srivastava (Senior Law Officer) 22 September 2009

Dear Mr. Jay,

This is for the first time I am hearing that CTC is being demanded in lieu of notice period. CTC includes the notional monetary value of many perks which are actually not paid in cash and is usually calculated on annual basis. While the amount to be paid in lieu of notice period varies from company to company generally it is either the basic salary or emoluments. Emoluments could include DA, CCA, HRA, Conveyance etc. i.e. anything shown in your salary slip. I would advise you to re look in your appointment offer that you have accepted. You will find the correct position from there. You are not bound by anything that you have not accepted.

Amardeep

Ashish Ovalekar (Manager Legal & Compliance) 23 September 2009

Dear Jay,

Firstly check the Termination clause of your appointment letter. It should mention the Notice pay in lieu of Notice. If it mentions on Basic then you would only have to pay basic amount, but if it mentions CTC value then you would have to reimburse the same, less the Statutory deductions such as Provident Fund contribution for that month. You would also have to exculde the costs of the Company such as Company's Provident Fund Contribution, Gratuity Provision, Bonus provision etc.

Thanks,

Ashish

If it mentions that in th event of termiation of services by either pa