Salary in lieu of Notice Period
Himanshu
(Querist) 23 December 2013
This query is : Resolved
Hi,
I resigned from a PSU about a month ago and as it was urgent I had pay 1 month notice period pay to get the relieving.
As they recovered full months salary including HRA and other perks along with Basic plus DA. now my question is whether a PSU can recover the gross salary or not because most companies recover only basic plus da..
Also if there is any DPE guideline for that effect..
And if I have to file a RTI shall I confirm the facts first with any ministry or directly ask the PSU for its policy
please guide
venkatesh Rao
(Expert) 23 December 2013
It is one month's salary which is inclusive of other allowances which normally would have been allowed, had you not resigned.
Kumar Doab
(Expert) 24 December 2013
The notice period/pay in lieu of notice period is stated in standing orders (Certified/Model) applicable to the establishment and it shall prevail upon appointment letter.
In case of Model Standing orders the rate is 1 month’s pay.
If standing orders are certified and extended to your designation you may go thru these and look into rate of notice pay.
The standing orders are certified after parleys with employer, employee’s representative and certifying officer.
Therefore the rate mentioned in it shall stand.
If it is Basic+DA in standing orders then employer can not deduct@ Gross pay even if it is stated so in appointment letter.
The rate of notice pay should be equitable to both employer and employee.
If employer adjusts notice pay @ Gross pay then it should also tender @ Gross pay if it has initiated termination?
If employer in cases of terminations initiated by it has not been tendering notice pay @ Gross then you may succeed to agitate.
You are right in your observation that “most companies recover only basic plus da” as employer tenders OT, Gratuity, Leave encashment, Bonus at this rate.
However you may restrict yourself to the service conditions and rules applicable to your establishment and agitate only if a variance is noted.
Otherwise the establishment is not at fault.
Himanshu
(Querist) 27 December 2013
Thank you all for your valuable suggestions.
From where can I get the standing orders applicable?
Kumar Doab
(Expert) 27 December 2013
Employer or concerned HR person designated by employer or CO (certifying Officer) which might be DLC in O/o Labor Commissioner. The Employees union must also have a copy.
The standing orders if applicable to the establishment are to be displayed at a conspicuous place/on notice Board/near entrance.
