Hi, I have a query regarding the notice period. When an employee resigns, the notice period will start from the date of resignation. In that case, does the company have the freedom to issue a termination letter for a valid reason?

Kindly guide.

From India, Pune
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Hi,

Yes, if there is a valid reason, then there is no question. But valid reasons have to be justified and put forward professionally. For example, if you have not issued a poor performance report to him during his regular job period (assuming the employee is a poor performer) and suddenly you are saying we are terminating you on the basis of performance, it's not justified. It is not a question about legality but about the approach. That means management is expected to be mature, professional, and unbiased in the situation.

But if there is a case where the person is engaged in theft (e.g. data theft) or is involved in anti-organizational activities, and there is proof for this, then you can terminate the person.

Regards, Tikam
tikamindia@rediffmail.com

From India, Pune
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Hi,

Yes, the company can issue a Termination letter for the resigned employees with a valid reason subject to the concern that the reason must be detailed and supported by strong reasons to terminate.

Regards,
Raul

From India, Madras
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Hi,

Yes, of course, the company reserves the right to terminate any employee as per the signed employment contract, but, of course, it should be for a valid reason. If the employee is serving his/her notice period, they are still on the company's payroll, and when the employee is on the company's payroll, he/she will be bound by the company's rules and regulations.

Best of luck,
Aman Khan.

From India, Hyderabad
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Hi,

There can be two types of notice periods:
1. The company has given one month's notice to an employee.
2. The employee has given one month's notice period.

In the first case, if the company wants to terminate the employee 15 days after issuing the notice period, it can do so with a valid reason. However, in the second case where the employee has given and is willing to serve the full notice period, and in such a scenario, if the company wants to terminate the employee, then the company should pay for the notice period for the remaining days from the date it wants to remove the employee until the last day of the notice period.

Regards,
Harshad

From India, Mumbai
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Dear All,

Thank you for the response.

The actual case is that an employee has submitted his resignation. As per the company rules, the notice period is three months. The employee was willing to pay the notice period amount; however, the company required his services for the entire three months for a proper handover. Consequently, the request to accept the notice period amount was denied.

As a result, the departing employee feels demotivated, leading to a disruption in work quality and quantity, causing some financial loss for the company.

Based on the feedback received, the company may need to issue a termination letter citing the aforementioned reasons to the departing employee.

I hope this course of action is deemed appropriate.

Looking forward to your response.

Thanks and Regards,
Aun M V

From India, Pune
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Dear Mr. Arun,

If you have any clause in the appointment letter stating that an employee should serve "3 months notice or PAY," then you have to accept the pay and take care of the situation. If the clause is not mentioned in the appointment letter, you can advise him to stay back for 3 months. If the employee wants to quit immediately, then the management should decide whether to keep the candidate or relieve them. If the employee received any performance award or anything similar, then you can advise them properly on the action to take. Taking immediate action like termination may create problems in the present environment as coworkers may not accept such decisions. So before making any decision, think about the organizational culture and environment. Any decision that does not affect the environment, please proceed accordingly.

Regards,
Saran

From India, Hyderabad
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Hi,

For the reasons specified in your post, you cannot terminate him. It will amount to vindictiveness, and if it goes to court, he will receive very good compensation from you for spoiling his career. He has submitted his papers and was willing to pay for the notice period. The clause always reads, "shall give three months notice or pay three months' salary in lieu of notice pay." The option here is for the employee and not for the employer. You must facilitate his handover at the earliest as desired by him.

Siva

From India, Chennai
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Dear Arun,

How you will treat this employee will also signal and communicate with all other employees. The right thing to have done was to understand that severance mustn't be vindictive and seen by the organization as that. Severance must be treated with dignity, care, and sensitivity.

You may either continue to keep the person on rolls (thus ensuring that he is available to you for critical info) for his notice period and continue to pay his salary without his needing to come to the office daily (and thus be a source of demotivation for all), OR pay him his salary in lieu and terminate with immediate effect.

The whole aim of HR, and the effectiveness of our function is to be proactive and ensure the organization doesn't get into messy/sticky situations. Also, that employees feel cared for and wanted not only when we hire them, but also when we let go of them for whatever reason.

I am sure you have the skill/ability to handle the situation with elan. Best of luck and God bless.

Joseph

From India, Kochi
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Dear Arun,

I agree with T. Sivasankaran that you need to sit with the concerned employee and convince him to hand over his responsibilities and charges to the relevant person before he can leave. This is where the real role of HR begins.

Regards,
Vinayak

From India, Mumbai
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Dear Rajesh,

I am working in the service sector, in which we are terminating some employees who have been absent for 1-2 months by issuing a seven-day notice period. However, the attendance of the employee is nil. In that case, is it required to pay him the notice period amount?

Thanks,
Rajesh

From India, New Delhi
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What action can an employee take if he is terminated without any reason just after the appointment (say about 15 days)? What rights will the employee have, even if he has not been provided with an appointment letter, completed 15-20 days in an organization, and even collected a salary for 15 days.

Thank you.

From India, Vadodara
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There can be two types of Notice Period:

1. Company has given one month's notice to an employee.
2. Employee has given one month notice period.

In the first case, if the company wants to terminate the employee 15 days after issuing the notice period, it can do so with a valid reason. But in the second case, where the employee has given and is willing to serve the full notice period, and in such a case the company wants to terminate the employee, then the company should pay for the notice period for the remaining days from the date it wants to remove the employee until the last day of the notice period.

From India, Noida
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