Hi, this is Sneha. Can anyone please tell me if the salary paid during the notice period is the gross salary or only the basic salary is given (excluding conveyance & HRA)? Also, please mention under which section of the Shop & Establishment Act it is written.
From India, Calcutta
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2From India, Calcutta
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Dear Ms. Sneha,
The relevant clause under A.P. Shops and Establishment Act states that:
Termination of the services of an employee by the employer: Sec 47(1) - Termination in cases where an employee has 6 months or one year of service. No employee with continuous service for 6 months can be terminated without one month's notice or payment in lieu of notice. Additionally, for an employee with continuous service of one year, service compensation equivalent to 15 days' wages must be paid.
Eligibility for Service Compensation: Apart from receiving payment in lieu of the notice period, if no notice is given, the terminated employee is entitled to service compensation as per Sec 47(3) - Eligibility of service compensation: An employee with continuous service of not less than one year is eligible for service compensation at the rate of 15 days' wages for every completed year of service. Employees are also eligible for service compensation in the following circumstances: 1) Voluntary cessation of work upon reaching the superannuation age of 60 years, 2) Physical or mental infirmity, 3) Resignation, 4) Death, or Disablement.
Here, the term "salary" refers to gross salary only. The employer is required to pay one month's gross salary in lieu of the notice period to terminate the services of the employee if proper notice was not provided for the termination of services.
Regards,
N.V. Rao
Tanuku
From India, Hyderabad
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The relevant clause under A.P. Shops and Establishment Act states that:
Termination of the services of an employee by the employer: Sec 47(1) - Termination in cases where an employee has 6 months or one year of service. No employee with continuous service for 6 months can be terminated without one month's notice or payment in lieu of notice. Additionally, for an employee with continuous service of one year, service compensation equivalent to 15 days' wages must be paid.
Eligibility for Service Compensation: Apart from receiving payment in lieu of the notice period, if no notice is given, the terminated employee is entitled to service compensation as per Sec 47(3) - Eligibility of service compensation: An employee with continuous service of not less than one year is eligible for service compensation at the rate of 15 days' wages for every completed year of service. Employees are also eligible for service compensation in the following circumstances: 1) Voluntary cessation of work upon reaching the superannuation age of 60 years, 2) Physical or mental infirmity, 3) Resignation, 4) Death, or Disablement.
Here, the term "salary" refers to gross salary only. The employer is required to pay one month's gross salary in lieu of the notice period to terminate the services of the employee if proper notice was not provided for the termination of services.
Regards,
N.V. Rao
Tanuku
From India, Hyderabad
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There are different shop and Estsblishment acts in different states Which one covers yours ?
From India, Mumbai
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From India, Mumbai
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If the employee is working during notice period the regular salary shall be paid. Varghese Mathew 09961266966
From India, Thiruvananthapuram
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From India, Thiruvananthapuram
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Dear Friend,
You did not provide details of the employee who was reported to have resigned on medical grounds after receiving her monthly salary for 30 days. If your management has accepted her resignation, you should pay the remaining balance salary for 10 days. If the resignation has not been accepted, you were expected to terminate the services of the employee by invoking the relevant clause of the standing order, service rule, or appointment order. Failure to take action in this matter would result in the obligation to pay her salary for the remaining 10 days to resolve the issue amicably, as she tendered her resignation on medical grounds. If there is a clause in her appointment regarding the termination of employment, then that should have been followed to terminate her services. However, as she has already resigned, this cannot be done now.
In light of the above, it would be advisable to settle the balance amount for the remaining 10 days as well. Otherwise, if she lodges a complaint with any labor forum, the company may face consequences for failing to pay the salary of the resigned employee.
Regards
From India, Hyderabad
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You did not provide details of the employee who was reported to have resigned on medical grounds after receiving her monthly salary for 30 days. If your management has accepted her resignation, you should pay the remaining balance salary for 10 days. If the resignation has not been accepted, you were expected to terminate the services of the employee by invoking the relevant clause of the standing order, service rule, or appointment order. Failure to take action in this matter would result in the obligation to pay her salary for the remaining 10 days to resolve the issue amicably, as she tendered her resignation on medical grounds. If there is a clause in her appointment regarding the termination of employment, then that should have been followed to terminate her services. However, as she has already resigned, this cannot be done now.
In light of the above, it would be advisable to settle the balance amount for the remaining 10 days as well. Otherwise, if she lodges a complaint with any labor forum, the company may face consequences for failing to pay the salary of the resigned employee.
Regards
From India, Hyderabad
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