Can a company deduct salary if a notice period is not served?
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Yes, in the event that an employee fails to serve the required notice period, employers may take from their final settlement an amount equal to the employee’s salary during that notice period. This is not taxable and is referred to as notice period recovery. Depending on the employee’s position and the company policy, the notice period may have different durations. For instance, in India, senior and mid-level positions may have a 60–90 day notice time, but freshers usually have a 30-day notice period.