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Vijay Bhaskar (Law student)     26 April 2023

Notice period pay basic vs full pay

Dear Sir/Mam.

May I please ask a question on Notice Period Pay by Employer & Employee.

Contract does not mention about how much employee has to pay to buyout notice period, but Company would pay Basic pay. Under this circumstance if Company demands "full pay" from employee to buyout notice period is this maintainable in court. Or employee only needs to pay Basic pay only?

 

Following Employment Contract excerpts on Notice period,

-------------------

>>Notice Period:

>>Notice period - 90 days

>>Company reserves the right to make  payment of basic pay in lieu of such Notice period.

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Thanks & Regards

Vijay

 



Learning

 2 Replies

T. Kalaiselvan, Advocate (Advocate)     26 April 2023

The compensation amount for notice period from employer as well as the employee would be mentioned in the employment offer letter.

If the terms of compensation payment amount from employee is missing in the employment offer letter, then the employee can pay the same amount that the employer is obliged to pay to the employee.

Vijay Bhaskar (Law student)     26 April 2023

Thank you so much Sir. In such cases, if employer takes to court to pay full pay instead of basic, would it be maintainable in court. 
 

Regards

Vijay

 

 


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