Unfortunately we are confronted with a problem of having too many 'experts' in this forum! Everyone seems to think that he or she has to contribute his/her two cents worth, without bothering about the consequences, especially the adverse effect it has on the young and growing HR professionals by giving them wrong information.
May I request all to understand the difference between the law, the industry norms and the practice in your own organisations - past or present. While the law is sacrosanct, and the industry norms constitute desirable practices, what your own organisation follows need not be the right policy - even if it was started by an expert who was or is heading your HR department. Also, except where it is legally binding, due to the fact that it is laid down in an Act or Law under that governing your company, and hence is binding (Eg. Shops and Establishments Act, Payment of gratuity Act, Provident Fund rules etc.), your organisation is free to frame its own rules and regulations in matters like notice period and cash in lieu of notice. What is important is that the employee, while accepting the offer of employment, should be made aware of such internal rules by inclusion in the appointment letter, and must accept them (by signing the letter).
As HR professionals, what we must ensure is that any such provisions also meet the principles of natural justice. Thus, if you pay your employees are paid only the basic pay when he or she encashes the accumulated leave, it only logical that you recover basic pay only against deficient notice period as well. Same goes with the payment against notice period from the employer's side, if the company is terminating the services of an employee.
It would be nice if those who claim that certain provisions are given elsewhere (like in the webpage of HRD Ministry etc.) also provide the link to it, or at least personally check and satisfy himself/herself that the same is ture, before making such a claim.
I have taken he liberty of writing such a long posting only because I am shocked to see the amount of misinformation posted by the self-proclaimed experts here. Please do not take it as a personal attack against any individual(s) who contributes to this forum.
From India, Mumbai
3May I request all to understand the difference between the law, the industry norms and the practice in your own organisations - past or present. While the law is sacrosanct, and the industry norms constitute desirable practices, what your own organisation follows need not be the right policy - even if it was started by an expert who was or is heading your HR department. Also, except where it is legally binding, due to the fact that it is laid down in an Act or Law under that governing your company, and hence is binding (Eg. Shops and Establishments Act, Payment of gratuity Act, Provident Fund rules etc.), your organisation is free to frame its own rules and regulations in matters like notice period and cash in lieu of notice. What is important is that the employee, while accepting the offer of employment, should be made aware of such internal rules by inclusion in the appointment letter, and must accept them (by signing the letter).
As HR professionals, what we must ensure is that any such provisions also meet the principles of natural justice. Thus, if you pay your employees are paid only the basic pay when he or she encashes the accumulated leave, it only logical that you recover basic pay only against deficient notice period as well. Same goes with the payment against notice period from the employer's side, if the company is terminating the services of an employee.
It would be nice if those who claim that certain provisions are given elsewhere (like in the webpage of HRD Ministry etc.) also provide the link to it, or at least personally check and satisfy himself/herself that the same is ture, before making such a claim.
I have taken he liberty of writing such a long posting only because I am shocked to see the amount of misinformation posted by the self-proclaimed experts here. Please do not take it as a personal attack against any individual(s) who contributes to this forum.
From India, Mumbai
AS PER THE LEGAL YOU MUST PAY / DEDUCT ONLY THE SALARY OF THE EMPLOYEE FOR THE NOTICE PERIOD LIKE IF HE IS SUPPOSED TO GIVE ONE MONTH NOTICE THAN FROM THE DATE OF INTIMATION TO THE LAST DAY ON THE DAY HE HAND OVER ALL HIS CHARGE TO THE COLLEGE TO THE DEFINE PERSON AS SAID BY THE MGT. YOU SHOULD DEDUCT ONLY THE SALARY( BASIC + DA) SINCE OTHER ARE SAID TO GIVEN ONLY IF HE URNS THE SALARY.SO ONLY THE BASIC IS TO BE DEDUCTED OR THE SAME HAS TO BE PAID .
Hi Amit,
Can there be a case where company takes gross salary in lieu of notice and pays basic salary in lieu of notice.
Also if a company adopts a practise of encashing leaves on basic, then how salary in lieu of notice should be taken.
Is there is any law pertaining to this.
Awaiting your response.
Thanks
Ravi
Can there be a case where company takes gross salary in lieu of notice and pays basic salary in lieu of notice.
Also if a company adopts a practise of encashing leaves on basic, then how salary in lieu of notice should be taken.
Is there is any law pertaining to this.
Awaiting your response.
Thanks
Ravi
Dear All,
I want to ask personal question.
I left the company on 2nd july with given notice period of only 2 days. After that company has not communicated anything regarding the F&F Settlement. and also about releiving letter. As per company's HR policy it should be done in 45 days. But till date nothing is communicated.
In this case what can be done from my side.
regards,
Ravikumar
From India, Pune
I want to ask personal question.
I left the company on 2nd july with given notice period of only 2 days. After that company has not communicated anything regarding the F&F Settlement. and also about releiving letter. As per company's HR policy it should be done in 45 days. But till date nothing is communicated.
In this case what can be done from my side.
regards,
Ravikumar
From India, Pune
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Full n final settlement.doc