Hi All, Wanted some clarity on recovering shortfall in notice period. Is the shortfall calculated on basic salary or gross salary? What is the industry practice for the same. Regards, Afrin Kanga
From India, Mumbai
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From India, Mumbai
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Industry practice is recovery to be made from gross salary.
But why do you want to recover the shortfall in the notice period? Instead, you can ask the employee to surrender his earned leave for adjusting the shortfall in the notice period.
From India, Aizawl
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651But why do you want to recover the shortfall in the notice period? Instead, you can ask the employee to surrender his earned leave for adjusting the shortfall in the notice period.
From India, Aizawl
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The recovery of notice period is based on the policy of the company, maximum companies recover the same on basic pay. Thanks
From India, Gurgaon
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From India, Gurgaon
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In general concept, Notice period recovery rate is quite simillar to rate of leave enchament rate paid while final settlement.
From India, Gurgaon
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From India, Gurgaon
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Dear Friend,
Recovery of notice period salary is based on the contract of employment. It is always specified in the contract of employment whether the recovery will be made on the basic salary or gross salary.
Warm Regards,
Bharat Gera
AV Consultants
9322404765
From India, Thane
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Recovery of notice period salary is based on the contract of employment. It is always specified in the contract of employment whether the recovery will be made on the basic salary or gross salary.
Warm Regards,
Bharat Gera
AV Consultants
9322404765
From India, Thane
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Its generally calculated with gross pay. However need to check with terms & condition clauses mentioned in appointment letter before execute. Regards, Kannan R
From India, Bangalore
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From India, Bangalore
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Generally, it is seen in any job offer letter or offer of appointment under the separation clause (Notice of Termination) that "you shall be serving ___ months' notice to the company, should you seek separation from the company or ___ months' salary in lieu of the notice period."
This is a general clause; whether it is one month's notice or one month's salary OR three months' notice or salary depends on the company and the position. Thus, it is written as salary, and salary need not be basic salary alone; it often includes DA, HRA, etc.
Therefore, it is not wrong to say that the shortfall in the notice period is calculated based on the full monthly salary and not just on the basic salary.
From India, Aizawl
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This is a general clause; whether it is one month's notice or one month's salary OR three months' notice or salary depends on the company and the position. Thus, it is written as salary, and salary need not be basic salary alone; it often includes DA, HRA, etc.
Therefore, it is not wrong to say that the shortfall in the notice period is calculated based on the full monthly salary and not just on the basic salary.
From India, Aizawl
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