Ajay Sinha (Private) 17 April 2012

Short notice period with psu

I have resigned from a PSU (FCI), after almost 7 months. As per their rules I have to serve one month notice period or have to deposit pay and allowances for the shortfall. I serve 13 days. They want pay and allowances for 17 days.

Now, my question is, if I have to deposit CPF also (12% of basic+da), which they claim. Their regulation claims:

***Explanation: The term “allowances” used in this Regulation means and includes Dearness Allowances and Additional Dearness Allowance only and does not include any compensatory or other allowances

Also they refuse to give salary for the notice period, though I think their rules sates otherwise. Please help. I am quoting exactly from the FCI Staff regulations act:

*21. Resignation:
(1) No employee shall resign from the service of the Corporation except by giving such notice or by paying compensation in lieu of such notice or for the shortfall in the notice period, as the case may be, as an employee of equivalent rank would have received under Regulation 19 or under Regulation 15(3), as the case may be, if his services were to be terminated or compensation paid in lieu of such notice.
Provided that it shall be open to the appointing authority to waive such notice.

(2) Resignation may be accepted by the appointing authority with immediate effect or at any time before the expiry of the period of notice in which case an employee shall be paid pay in respect of unexpired period of notice given by him. In case a shorter period of notice is accepted at the request of an employee, he shall be entitled to receive his pay and allowances only in respect of actual period spent on duty in the Corporation.

(3) The resignation submitted by an employee will become effective only when it is accepted and the employee is relieved of his duties.

(4) An employee leaving the service of the Corporation without giving proper notice or compensation paid in lieu of such notice or without acceptance of his resignation or without being relieved of his duties shall be liable to disciplinary action under these Regulations.

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3 Replies

Kumar Doab (FIN) 17 April 2012

Apparently the notice pay applicable to employee and corporation seems to be the same and you need to tender @Basic Pay + DA.

Notice period is counted in service and salary and attached/applicable benefits are paid. Regulation 19 and 15(3) are not known.

It shall be appropriate on your part to ask in writing under acknowledgment to provide you FNF statement so as to enable you to make the payment. FNF statement shall express all payables and receivables and in case of an error you can point out.

Your appointing authority can waive off the notice pay. You may try for it.

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Ajay Sinha (Private) 18 April 2012

Thanks, Kumar. I asked them for calculation details for 17 days pay and allowances, over 2 months ago. But they haven't provided me. I will ask for FNF statement (I think FNF refers to Full and Final Settlement). Since they refuse to pay 13 days salary, can I quote them Regulation 21 (2) and ask them for it. Also they accept my resignation and will provide final release subject to payment of pay and allowances for 17 days.

I have quoting regulation 15(3) and 19 also.

Regulation 15(3) states:

*15(3) During the period of probation an employee directly recruited shall be liable to be discharged from service without assigning any reason by giving him a notice of 30 days or pay and allowances in lieu thereof.

*Explanation:
The term “allowances” used in this Regulation means and includes Dearness Allowance and Additional Dearness Allowances only and does not include any compensatory or other allowances.

Regulation 19 states:

19. Termination of service and discharge:
(1) The services of any employee who has appointed on a regular basis to any post in the Corporation and has satisfactorily completed his period of probation may be terminated by the competent authority on giving such employee 90 days notice or [pay and allowances in lieu thereof]*.
Provided that services of a transferred employee shall not be terminated except as a consequence of abolition of posts or a reduction in their number. Termination of service consequent on such abolition or reduction shall take place in the order of juniority in the grade concerned in the Corporation and the period of notice or *[pay and allowances in lieu thereof] * in such cases shall not be less than the period or *[pay and allowances in lieu thereof]* to which such a transferred employee was entitled if he had continued in Government service.
**(2) The services of any employee appointed under sub-clause (b) or sub-clause (c) of clause (3) regulation 7 may be terminated by the competent authority on giving him 30 days notice or [pay and allowances in lieu thereof.]
(3) The competent authority for purposes of this regulation will be an authority not lower in rank than the appointing authority.
(4) Nothing contained in this regulation shall affect the right of the appropriate authority for dismissal, removal from service or compulsory retirement of an employee as a result of disciplinary proceedings or in pursuance of the provision relating to retirement under regulation