Notice Period Salary Pay Recovery Letter Certificate Format

Under the employment contract with the company, most of the employees are bound by the condition of serving notice period before leaving the company. Hence, while resigning, most employees serve 1-3 months' advance notice and, thereby, inform about their intention to leave the organisation.

Employees who fail to serve notice period are required to pay an amount equal to their 1-3 months' salary.

Example: Mr. Harry is required to serve 1 month's notice period. His monthly salary is INR60,000. If he fails to serve notice period, he will have to pay INR60,000 to the company.

If he fails to serve only half of the notice period, he will have to pay INR30,000 to the company. If he does not pay, the company will recover the amount from any payments due to him.

Notice pay recovery letter may be asked by the employee's new employer to prove the last drawn salary amount. Here is a sample of such notice pay recovery letters/ certificates.

TEMPLATE

Ref: _________

Date: ________

TO WHOMSOEVER IT MAY CONCERN

This is to inform that an amount of Rs. _________ (Indian Rupees __________________ only) was recovered from the final settlement of (Name of the Employee), Employee code: _________, who separated from the company with effect from (Date).

The said amount was recovered towards notice pay for the shortfall in serving the notice period by (Name of the Employee).

This certificate is being issued at the request of Ms. / Mr. ____________ for submitting to her/ his new employer.

Sincerely,

For (Name of the Organisation),

    (Signature)

(Name of the Officer)

(Designation)