Aarif (COO) 29 March 2013

Notice pay deduction after approving reduced notice period

I have a simple query, if someone can help. I was a VP at an advertising agency. My contract included a 3-month notice period. When I resigned on 12th December 2012, I'd requested for reduction of my notice to 1 month. But my CEO insisted on serving at least 2 months notice, which I served. Now when its time to pay my final dues, the company has deducted one month's salary from my final dues, which is a huge amount.

Can my employer do that? Can they deduct a month's salary even after approving my reduced notice period? According to them, they relieved me in 2 months because I had asked for it, and that notice pay will be deducted as per 'company policy'. Is that right, and more importantly, is that fair?

Lastly, if I was even told that there would still be deductions even after such an approval, I would have perhaps served the entire three months. But it wasn't even told to me.

Can anyone please help? Any advice will be highly appreciated.

Thanks.

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Kumar Doab (FIN) 29 March 2013

Apparently in your notice pf resignation you have made a request for reliving before expiry of notice period or you have tendered notice of resignation less than 3 months as stated on appointment letter issued to you.

As per details posted by you the stand of the company seems to be correct.

The company has deducted notice pay for shortfall in notice period as per contract signed by you. Company does have the power/discretion to waive off the notice period and notice pay. If your CEO decided he can waive of the notice pay.

You may go thru language of terms in the contract, and notices of resignation submitted by you, and show it to your lawyer.

If you have not mentioned notice period of 1 or 2 months/if you have written language like notice period as per clause number ……..in appointment letter dated……issued to you, you may have a chance…..

Valuable advise of learned experts/members is sought.