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shaukat hussain
6


Happy Holy

A. While employees are retrenched or terminated they are being paid notice period on the basis of Basic pay only. It is observed that many employers are charging gross salary against unnerved notice period is it correct in law? What is rule ?

B. At the time of full and final settlement of an out going employee can any employer recover or deduct outstanding from gratuity amount? Or Gratuity can be adjusted against outstanding?
Best wishes
Shaukat Hussain
+919414169247

From India, Jaipur
Madhu.T.K
3891

Compensation is always worked out on Basic salary and dearness allowances. But if the salary is structured in such a fashion that basic salary is restricted to a small amount so as to reduce burden of so many statutory contributions and payments by the employer like, PF, Bonus, etc, and if the worker is in a position to prove that the total salary has been structured like Basic + HRA+ other allowances just for employer's convenience and at the same time the the employer used to collect NOTICE PAY on GROSS SALARY, then compensation on retrenchment should also be calculated on that gross salary.

Amount of gratuity payable to an employee should not be adjusted against any dues from the employee. Even a loan from the company can not be adjusted against gratuity. Gratuity can be forfeited only to the extend of damages caused by the employee due to his militant attitude during the course of employment. Similarly, gratuity can be withheld if the employee is dismissed for an offence involving moral turpitude and not for any offence less than that.

Regards,

Madhu.T.K

From India, Kannur
shaukat hussain
6

Dear Madhu, I am very thankful to you, providing such valuable information.You are realy so helpful to me.Kindly respond my all threads in future also. Best Wishes Shaukat Hussain
From India, Jaipur
shaukat hussain
6

Dear Madhu
I wanted to know about some doubt regarding minimum wages, whether it should be Basic or gross wages ? Minimum wages as prescribed by govt.is different in every state.
Regards
Shaukat Hussain

From India, Jaipur
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