Hi, This is Sneha. Can any one please tell me that salary paid during notice period is gross salary or only basic salary is given (excluding conveyance & HRA). Also please mention the under which section of shop & establishment act it is written.
From India, Calcutta
Dear Ms Sneha

The relevant clause under A.P Shops and Establishment Act says that

Termination of the services of an employee by the employer: Sec 47(1)Termination in case where, employee is having 6months or One year service. No employee who is having continuous service for 6 months, services can not be terminated unless one month notice is given or pay in lieu of notice is paid. Further in case of employee who is having cotinuous service of one year , in addition to the above, service compensation which is equivalent to 15 days wages shall be paid.

Eligible for Service Compensation: Apart from getting pay in lieu of notice period one month, if notice is not given, the terminated employee is entitled to get service compensation also as per

Sec 47(3)Eligibility of service compensation: Employee who has continuous service for not less than 1 year is eligible for service compensation at the rate of 15 days wages for every completed year of service.Employees is also eligible to get service compensation on account of 1)Voluntary cessation of work on reaching the superannation age of 60 years,2) Physical or Mental infirmity 3) Resignation 4) Death or Disablement.

Here the salary means the gross salary only. The employer needs to pay one month gross salary in lieu of notice period to terminate the services of his employee if he was not given such notice for the termination services.

Regards

NVRao

Tanuku

From India, Hyderabad
There are different shop and Estsblishment acts in different states Which one covers yours ?
From India, Mumbai
If the employee is working during notice period the regular salary shall be paid. Varghese Mathew 09961266966
From India, Thiruvananthapuram
Dear Friend
You did not give the details of employee who was said to be resigned on medical grounds after getting her monthly salary of 30days. If your management has accepted her resignation, you should pay balance salary of 10days.or else if you did not accept the same, you were supposed to terminate the services of such employee by invoking relevant clause of standing order / service rule/ appointment order. By not taking action in this regard, you are supposed to pay her salary for 10days to close the issue amicably as she tendered her resignation on medical grounds. If there is any clause with regard to termination of employment in her appointment, then you should follow the same for terminating her services. But now it could not be done as she already resigned.
In view of the above, it is better to pay balance amount for 10days also. otherwise, if she files complaint with any labor form, the company has to face the consequences for not paying salary for resigned employee
Regards

From India, Hyderabad
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