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Indian Law/Notice Period


Hi Arun,

I was working with an america based multi national Company for 3.5 years and was a permanent employee. If I resign, I had to serve 3 months of notice period or I had to pay my salary to the company for the short fall period.

After my resign, I served 1 month of notice period and for remaining 2 months, I had to pay my 2 month salary. My employer charged me my GROSS salary istead of the basic salary.

I had 20 working days of vacation in my account ie 1 month of vacation. So for that the employer paid me the BASIC salary.

For another company 'LnT', I have seen the policy, the vacations are adjusted against the notice period and the rest of the notice time is chargeable with the BASIC salary of the employee. And after the adjustment in notice period, vacations's basic salary is still paid to the employee.

Is this ethical that while paying me, they game me Basic Salary and when I am supposed to pay, I have to pay with my Gross Salary.
Can I raise this issue in the labour court and ask for permanent change in the Policy of the company?

I have all the proofs, how they calculated my dues and how I paid with the Draft.

Please suggest me, if I can challenge this in the court of law. I have a lawer around me, if possible please refer to the section also, I will read out get his help.

Saurabh Gupta

Please go through the terms of your appointment and ensure that your notice is as per the terminatin clause contained in the contract.The notice pay is payable as per the terms of your engaement to be read with the service rules of the company.''Pay'' for the purpose of notice-pay may be simply on basic pay or on gross-salary or on some other basis.It varies from organisation to organisation and there is no hard and fast rule in this regard.However, there should be uniformity in principle while making the adjustment against your leave.There cannot be contradictory rules for the same calculation.
Apparently, there seems to be some logic beyond your grievance.However, please take appropriate action in the matter through a competent lawyer and follow his advice.Moreover, to stregthen your case , if possible, please try to collect a copy of the relevant service rules of the company.

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Arun Kumar Maitra


Contract Law,Companies Act,Sale of Goods Act,Partnership Act,Negotiable Instument Acts,Constitution of India,Arbitration Act,Consumer Protection Act,Maternity Act,Payment of Gratuity Act,Payment of Bonus Act,Shops & Establishment Act etc.The answer to the grievance of the particular online query depends on the facts of the particular case and law applicable to it.However,my comments relating to the various queries raised through the "All Experts" should not be treated as legal advices and should not at all be relied upon.I do not accept any responsibility for them.They will only give you some ideas about the probable merits of your cases.Ultimate actions/decisions in the matter may please be taken in consultation with the Legal Experts in the relevant fields.My purpose of giving the comments is to increase my own knowledge on the subjects and share it with others.It is purely of academic interest to me. I strongly feel the more knowledge we share,the more we shall be able to learn because there is neither any age nor any end to learning.


I have experience of dealing with matters relating to holdings of board/general meetings,maintenance of statutory registers,filing of necessary returns with the RoC,obtaining licenses for import,replies to Parliament Questions,dealing with the Parliamentary Committees,appearing before various courts to defend my employers,filing affidavits/counter -affidavits,preparing written statements/re-joinder,giving advice to management on complicated legal issues,preparation,drafting and vetting of contracts etc. I have more than 35 years of experiences to deal with the Company Law and Other Commercial Laws of leading Organisations in the country both in Public as well as Private Sectors.

Member,Inst. of Chartered Accountants of India Member,Inst. of Company Secretaries of India; Member,Bar Council of India Member,All India Management Association Member,Delhi Management Association Ex. Vice-Chairman,Durgapore Chapter of the I.C.A.I. Expert ,CA Club India Expert ,Lawyers Club India Expert,AllExperts Ex. Faculty ,I.C.S.I as well as I.C.W.A of India Retd. Co. Secy. & G.M.(Law)/NFL(A Mini-Ratna A Schedule Central P.S.U.),New Delhi Ex.V.P.(Secretarial Dept.),Jaiprakash Associates Ltd. Ex. Co. Secy.,MAMC(A Govt. of India Enterprise),Durgapore



Awards and Honors
Obtained ''A'' Grade Certificate in the Parliamentary Procedure from the Secy. General of Parliament in 1994-95.It was in connection with a training course conducted by the BPE for PSU Executives.

Past/Present Clients
I am presently working as a Company Secretary in Old World Hospitality Pvt. Ltd.located in Delhi.It is engaged in Hospitality Industry.It has Units in India and abroad.It has been given the responsibility to look after operation & Management of ''India Habetat Centre'' located at Lodhi Road,New Delhi.

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