Legal Question in Employment Law in India

Upon submitting a resignation letter I was relieved without having to serve the notice period of 1 month, as required by my employment contract. However, in full and final settlement the notice pay (which should consist of monthly gross salary) was listed under separate heading and did not include a component associated with leave travel and for tax computation no tax exemptions for Housing Rent and other items was made on the notice pay. Is that appropriate? I should be able to get the tax exemption on HRA for the notice period, even if I did not have to work, but still paid rent. Should I not recieve the LTC for that month as well? After all it is part of my gross salary.

Asked on 10/26/13, 8:45 am

1 Answer from Attorneys

Fca Prashant Chavan Expert Edge LLP
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Answered on 10/26/13, 9:44 am

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