Notice pay

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This query is : Resolved

Yatesh Prakash Renuke (Querist)

21 July 2012 Dear All,
One of my friend has resigned from his employment. As per his appointment letter, he needs to serve 3 months from the date of resignation. His appointment letter says that 3 months of notice period or salary in lieu of notice will have to be given. He has served 1 month in the company & he is ready to pay 2 months of salary in lieu of notice. Now his company is asking for Full Salary i.e. CTC for 2 months. But as per our knowledge it should be only BAsic Salry. Can any body help me in this regard for the following:
1. HOW CAN HE DEFEND IT?
2. UNDER WHICH LAW/ACT (WITH SECTION OR PROVISION) HE CAN DEFEND?
THIS IS REALLY VERY URGENT. YOUR EARLY REPLY WILL BE HIGHLY APPRECIATED.
You can mail me your responses on my personal e-mail: cayateshrenuke@gmail.com

Thanking you all in advance.

Regards'

Yatesh Renuke.
+91-9011024099
+91-9403355599

CA Amit Jaiswal

CA Amit Jaiswal (Expert)

21 July 2012 In industry, the notice pay is paid/given for full monthly salary (including all components)

If the employer is giving the notice pay, for separating an employee from his duty they give full salary.
In the same way if the employee is not serving the notice period, then he will have to pay the full amt.

Further, these matters can be settled between employer and the employee at the mutually agreed terms.
If your friend wants the Relieving letter, then he will have to comply with the conditions.

CA Amit Jaiswal

CA Amit Jaiswal (Expert)

21 July 2012 Mutual discussion can help in arriving at a mutually acceptable conclusion.

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