I was working in X company and was a confirmed employee. As per the appointment/confirmation letter, I have to give 3 months notice or pay the amount in lieu of notice period if I resign. I had given resignation letter on January 28, 2008 and was relieved on March 15, 2008. The company has taken 16 days notice pay on gross salary which includes basic salary, HRA, conveyance, medical reimbursement, special allowance, personal pay. Is it valid as per Labour Law.

I would like to state here that the company while giving normal salary also does not ask for medical bills, if it is not submitted at the end of the year, tax is deducted on the amount for which bills are not submitted.

Further, there is a clause which states that a confirmed employee before 1 year cannot avail LTA. Is it valid as per Labour Law.

Thanks in advance.
Shaikh

Dear

The deduction on not notice pay has to be on basic and not Gross, as all the emoluments / benefits / allowances are given to an employee when he /she is currently working in any organisation, so when you are not working then the notice pay deduction can not include any component other than basic.


Regards
Kanupriya