Hi I am working for a US company that is contracting me via an Indian HR payroll company. In my agreement, the following clause was present: "If you or the company wishes to terminate your employment, then one month’s notice or payment in lieu of notice will be given by either party." I would like to know how much would I legally owe to the company if I don't intend to serve the notice period. (The payroll company generally gets a 20% of my salary pm as commission from my us company).
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The payment of the salary and deduction of salary toward the notice pay is solely governed by the terms and conditions of the appointment of the concerned employee and as and when modified by the company from time to time.
Generally there is provision for deducting the gross salary towards the notice period,
One months basic salary will be deduce for not serving the notice period
1. The salary you actually get at your hand is liable t be deducted.
2. The commission , if any, changes at hand between the companies has got no connection wile paying off your notice period money.
Hi
You would have give them one month (notice period) salary to the company if you break the service agreement.
Thanks
More often than not, T&C of your appointment will be considered, as such, the payment will be Basic pay which you need to pay.
Certain companies will specify the amount also i.e., it could be gross pay for the month.
Third party involvement will not be considered.
As per the agreement, you will have to serve a minimum 1 month notice period or failure to serve would mean payment in lieu of notice period.
The payment will be decided by the company after you serve a notice stating you wish to be relieved before 1 month. If the payment that is fixed by the management is agreeable to you then you can quit immediately, if not you will have to serve out the notice period.
The payment to be decided by the company would broadly be determined on how much it spent for your training and other expenses incurred by it for educating you. Since you are on payroll the company hiring you will ultimately decide on this as well.
You may be liable to pay one month salary paid by your company by a salary certificate towards the monthly salary .
The commission or whatever deduction will not be considered in terms of the compensation to be paid on leaving the office by putting down your papers.
See as per the agreement you shall be liable to pay the amount received by you as one months salary they cannot seek commission amount too from you as you are on their payroll not US company who is originally paying.
Full one month payment. Indian company may charge and not US comp.
Generally Notice buyout is calculated on Basic salary. But before go for conclusion first read contract letter/ appointment letter thoroughly. Because sometimes company has already mentioned this type of things in offer letter. So if they have not mentioned anything then that amount will calculate on Basic salary.
1. You shall pay one month's basic pay in lieu of the notice period for leaving the Company.
2. The commission which your Company pay to the payroll company is of no consequence in the instant matter.
1. A month's salary is to be paid by you if you do not wish to serve the notice period.
2. Irrespective of the cut which the payroll company gets you are liable to pay a month's salary to the employer.
If you leave the employer without serving notice period then you have to pay basic salary of a month which you are recieving after deducting commission of payroll company.
