Hello everyone! We have had a couple of employees who absconded/just left a message saying they aren't coming back. We sent them termination letters. During calculating final settlement, do I include notice period recovery? Technically, they didn't resign or serve out the notice period. On the other hand, on the record, it's the employer who has terminated.
I believe the notice period should be recovered but would like to know your views and what is right by law.
Thanks in advance.
From India, Bangalore
3I believe the notice period should be recovered but would like to know your views and what is right by law.
Thanks in advance.
From India, Bangalore
If you have mentioned in the termination letter that they are terminated for absconding, then yes, you can and should recover notice pay.
If you have not mentioned that, just ensure your internal processes records are kept in case anyone ever brings up the matter.
From India, Mumbai
If you have not mentioned that, just ensure your internal processes records are kept in case anyone ever brings up the matter.
From India, Mumbai
Dear Colleague,
As rightly mentioned by the Colleague, if you send normal termination letter then you as employer is liable to pay notice pay as per the clause of appointment order. What you need to do is give a brief that the talents are absconded form such and such date and you had sent letters ( give all reference) despite which no action from the talents and hence under the ground of " Abandonment of Service" the termination notice is sent. Then you may also add clause claiming notice pay etc. But in reality no one after leaving paying back the notice pay. If at all they worry about getting relieving order or experience certificate from your organization, there are remote changes of getting it back. But you may put it on paper and sent it as a communication for records.
From India, Chennai
As rightly mentioned by the Colleague, if you send normal termination letter then you as employer is liable to pay notice pay as per the clause of appointment order. What you need to do is give a brief that the talents are absconded form such and such date and you had sent letters ( give all reference) despite which no action from the talents and hence under the ground of " Abandonment of Service" the termination notice is sent. Then you may also add clause claiming notice pay etc. But in reality no one after leaving paying back the notice pay. If at all they worry about getting relieving order or experience certificate from your organization, there are remote changes of getting it back. But you may put it on paper and sent it as a communication for records.
From India, Chennai
In cases of abandonment of service, the notice period salary can be recovered from the terminal dues of the employee. This has been done in many cases.
From India, Mumbai
From India, Mumbai
Dear All,
Lot of discussions happen on this topic, but still lot of ambiguity prevail on this.
We can deduct from terminal dues... but we cannot deduct from gratuity as it is protected from deductions, and cannot deduct from bonus as that also protected by law. The only option is to deduct notice pay from final wages and EL wages.
Also during notice period if the exiting employee remain absent for more than a week and can we deduct pay or can we ask the employee to extend notice period.
I would like to know the legal advise on this..
From India, Coimbatore
Lot of discussions happen on this topic, but still lot of ambiguity prevail on this.
We can deduct from terminal dues... but we cannot deduct from gratuity as it is protected from deductions, and cannot deduct from bonus as that also protected by law. The only option is to deduct notice pay from final wages and EL wages.
Also during notice period if the exiting employee remain absent for more than a week and can we deduct pay or can we ask the employee to extend notice period.
I would like to know the legal advise on this..
From India, Coimbatore
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GST ON RECOVERY OF UNSERVICED NOTICE PERIOD.docx
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