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prashant_rai2007 (n/a)     28 July 2008

Deduction of notice pay

Dear All,

In deducting notice pay can one deduct all components of the salary or is there a legal provision for the same.

Regards,

Roy.



Learning

 9 Replies

Krishnan Venkatachalam (Legal professional)     28 July 2008

No. 


Basic salary + DA shall be taken to consideration for deduction of notice pay as other allowances shall be relating to the attendance of the employee only.


 

H. S. Thukral (Lawyer)     28 July 2008

Notice pay is one month salary payable to an employee if all conditions of service are fulfilled.

Kadali RK Rao (Asst. General Manager (Personnel))     29 July 2008

Notice pay comprises basic Pay + DA only.


regards.


krk rao

prashant_rai2007 (n/a)     29 July 2008

but is there any legal justification for the same. What if company wants to deduct every component of the salary as all part are equally deducted in time of no pay.

H. S. Thukral (Lawyer)     29 July 2008

As said earlier, full salary shall be deductible. If suggestions of few of my learned friends find their way, then an employee can remain on leave without pay for indefinite period surrendering only basic pay plus DA while earning all other allowances.     

ram (hr )     29 July 2008

Dear all


wages include basic,da and all other allowances also,usually in appointment orders employer dictate to be x month notice in lieu of wages, it means the gross which includes the employer contribution has to paid as notice pay, am also searching of is there any preceedings related to this notice pay,expecting more views


regards


ram

Saravana Rajan   30 July 2008

Pls refer to the clauses in your appointment order. In case if you serve the notice period, obviously entitled for the full salary and when you do not serve notice period, the entire salary you might have to pay in lieu.


You get qualified for allowances only if you work for that period in that organisation (medical / travel / HRA / etc)


Experts pls comment.


Saravana Rajan

Saravana Rajan   30 July 2008

Adding to the previous post, there seem to be no legal reference for regulating working hours of staff category employees - be it shops and establishments or industrial establishments.


Saravana Rajan

Guest (n/a)     26 August 2008

Dear Prashant,


Kindly illustrate more facts of the case. As for deductions, each establishment has its own parameters of permissible deductions from the salary of employees, or follow the guidelines of State or central govt guidelines for deductions.


I would like to hear more on the matter, before giving  analysis result pl.


S.K.Sarraf


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