There is an important update for salaried employees who plan to leave their jobs without passing the stipulated notice period. Under the new rules, employees will be required to pay 18 percent goods and services tax (GST) on the salary recovered during the reporting period.
According to the Gujarat Authority of advance ruling, the employee who leaves the company without completing the notification period will have to pay 18% GST along with the salary amount to the company for the remaining period.
The rule came during an authority hearing in which an employee of Ahmedabad-based Amneal Pharmaceuticals claimed a prejudice. The employee had demanded that he want to leave the job without completing the three-month notice period.
While listening to the case, the authority decided that the outgoing employee will either have to fulfill the notice period mentioned in the appointment letter or will have to pay 18 percent of the GST while paying the salary amount to the company for the remaining period.
A company or organization mentions a notice period in the employee's appointment letter, which varies depending on the requirements and position of the company, so that the company can arrange a replacement. Therefore, before leaving the company, any employee must work during this notification period if he cannot meet the notification period or is working less than the period mentioned in the appointment letter, he will be responsible for paying the days or period remaining.Also Read: Union Budget 2021: Check date, time and other key details