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Employment Law/Full and Final Settlement Issue



I was working in an BPO company and I had to leave the company in May 2013 because of my daughter, and I could not serve the full notice period. I served only three days notice period and I had my leave balance of 10 when I left. Now when I have asked for the Full and Final settlement to pay that and get my Relieving Letter,the company has asked for more than INR 50000 stating that they will cover 57 days of Gross Salary. As per my knowledge the settlement should be on the Basic salary not On the gross. And also I had 10 days earned leaves which I am not getting benefited. Please help me because 50000 is a big amount and moreover I am not working.



ANSWER: Dear Neelam,

Hope you're doing fine.

What was your last gross salary or CTC and last designation.

---------- FOLLOW-UP ----------

QUESTION: CTC was 3.20 Lakhs PA and the designation was Senior Process Associate.
Please suggest if the deduction should be on Gross or Basic.


Dear Neelam,

Hope you're doing fine.

Regarding deducting notice pay on basic pay or gross salary it's upto the employer. How is the practice in the Organisation. If they recover notice pay on basic pay for all other cases in the past but in your case recovered on gross than this is not justified please find out.

Also it seems notice period was sixty days and you served notice only for three days therefore they wish to recover against balance 57 days. Adjusting notice period against pending leaves is again upto the employer.

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Umesh Chaudhary


Any question related to HR processes, legal compliance of labour ONLY in India


Over 12 years in the field of Human Resources, industrial relations, labour laws and administration

1. An article published in India Today on sexual harassment, 2. People challenges on How to retain talent 3. Management & Human Resource

MBA (HR), M.Phil (HR). I hold various accreditation in the area of Human Resources, Industrial Relations and Employment Laws. I strongly feel the more knowledge you share the more you'll get to learn. There is no age to learning therefore I stay abreast with new developments into HR and Labor Laws; I prefer to attend regular seminars, professional gathering, workshops and lectures. I am also associated with All India Management Association, National HRD Network (Delhi Chapter).

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