wat does SALARY IN LIEU OF NOTICE maen??????
Rupesh Maheshwari (ACA, Dip. IFR (ACCA)) (6166 Points)
07 November 2008wat does SALARY IN LIEU OF NOTICE maen??????
S.Srinivasaraghavan
(Chief Financial Officer and Co)
(11318 Points)
Replied 07 November 2008
Instead of giving notice of certain period, the salary equivalent to that period
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 07 November 2008
| Originally posted by :S.Srinivasaraghavan | ||
| " | Instead of giving notice of certain period, the salary equivalent to that period | " |
not understood sir plz explain more
Garima
(Student)
(1107 Points)
Replied 07 November 2008
In the present day situation, the trouble of interpreting the term will not come as it is very clear in dealing such situations. The notice period one of the conditionalities for getting a job. If the employee given an advance notice of three months, he has to work for that much period, or compensate the shortage of days through payment thereof. However, in the interest of the organisation/establishment, it would be better to retain the employee till his time of leaving as per the notice period so that the firm can make alternate arrangement to substitute the person with equally qualified and experienced one. But if the employee who desires to be relieved earlier by making compensation for the shortage of notice period, it would be better to release the person at the earliest as his/her presence in the organisation/establishment will not contribute anything good.
In the engagement letter (or in contract) itself, it should be clearly be made the conditionalities of service, so that any such eventualities should be dealt with the contract.
CAclubindia
