733
Hi Everyone,
I have a question regarding the notice period clause in a contract of employment. If the contract stipulates that an employee must give 1 month notice to resign from the job or pay 1 month's salary in lieu of notice, is 1 month treated as date to date from Date of Resignation. Also, if the employee does not work the full notice period how calculate salary and the money owed to company.
For example, the date of resignation is May 21st. Is notice period May 21st to June 21st ? If the employee only works till June 7th and his salary is 20,000 does the employee owe the company 10,000 rupees.
Thanking you,
Suchitra.N
I have a question regarding the notice period clause in a contract of employment. If the contract stipulates that an employee must give 1 month notice to resign from the job or pay 1 month's salary in lieu of notice, is 1 month treated as date to date from Date of Resignation. Also, if the employee does not work the full notice period how calculate salary and the money owed to company.
For example, the date of resignation is May 21st. Is notice period May 21st to June 21st ? If the employee only works till June 7th and his salary is 20,000 does the employee owe the company 10,000 rupees.
Thanking you,
Suchitra.N
Dear Suchitra,
If according to the appointment terms Notice period is of one month.. Then one has to serve the notice period of same period..
If the employee remains absent after a certain time of serving the notice period.. then his notice period will be assumed of only those present days..
Otherwise the same will be deducted from his available Leave balance...
It means if one gives notice on 21st may that he will be separating after completing one month of notice period i.e on 21st June..
But comes there till 10th June only.. then only 20 days of notice wil be served or it might be deducted in the form of his available leave balance..
Regards,
Amit Seth.
From India, Ahmadabad
If according to the appointment terms Notice period is of one month.. Then one has to serve the notice period of same period..
If the employee remains absent after a certain time of serving the notice period.. then his notice period will be assumed of only those present days..
Otherwise the same will be deducted from his available Leave balance...
It means if one gives notice on 21st may that he will be separating after completing one month of notice period i.e on 21st June..
But comes there till 10th June only.. then only 20 days of notice wil be served or it might be deducted in the form of his available leave balance..
Regards,
Amit Seth.
From India, Ahmadabad
Hi,
As per the emp. contract the employee should pay you 15 Days Salary back or you can hold the 15 Days pay for which he has worked.
And if the employee has not handovered what is expected from him then you can ask him to give explanation for not participating in smooth transistion, still he acts funny, you can stop proceeding with Relieving formalities.
regards
Vamsee
From India, Hyderabad
As per the emp. contract the employee should pay you 15 Days Salary back or you can hold the 15 Days pay for which he has worked.
And if the employee has not handovered what is expected from him then you can ask him to give explanation for not participating in smooth transistion, still he acts funny, you can stop proceeding with Relieving formalities.
regards
Vamsee
From India, Hyderabad
Thanks a lot for taking the time to explain it in such detail. Now I feel more confident about the decision I made. If you have read the other responses you will notice that a couple of people are saying that when an employee has to pay, Basic salary is used not Gross salary. What is your response to that?
Suchitra
Suchitra
Using Basic salary when an employee has to pay and Gross salary when the employer has to pay. What is the logic behind that? Does this have any legal basis? Suchitra
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Notice period.jpg
Notice Period Extension Letter Format.doc