Notice pay

Dear Mr.Davison Mathew,

 Employees  employed by Industrial establishment / factory are issued appointment order defining the terms and conditions of employemnt. Where an employees wants to leave the service of the company, he has to give notice to the Management( Normally one month for junior cadres and two to three months for senior cadres) so that the Management has adequate time to look for replacement of the outgoing employee. Similarly if the Management opts to remove an employee with or with out any reason the notice period clause provides for the notice period referred above. Further they same clause shall also include a term in lieu of notice which means either party ie, employer or employee can pay the salary equivalent to the notice period in lieu of serving the notice period subsequent to removal or resignation as the case may be. This is a very important mandatory clause in all appointment order issued by the organisation.

All appointment orders will also define salary for the purpose of Gratuity, bonus and P.F. deductions as basic + DA. Hence in line with this the notice pay per month shall be per month basic pay. Payment and deductions for notice period shall be made @ basic pay only and allowances shall not be included. In the above referred case basic pay of Rs.10,000/- shall be taken in to account for notice pay calculations.

Basic pay, HRA and special allowance shall constitute notice pay in this case.

it is mandatory to give notice before leaving the job.  therefore notice of leaving a job by way of resgination is should be given to the employer then only the employee is entitiled for notice pay. The context 'Notice pay' included what you are gaining for last months will continue for further notice period.

nilima

can company recover notice period of 3 month and also bond money of 6 month salary

can company hold Salary bonus PF against recovery of bond notice period

no

Base pay *  Notice period = notice pay