Hi Vinodh,
In general, you will have to pay him the salary for the notice period.
The employee has resigned. He is willing to serve the notice period as required by the law.
You are asking him not to come to office for that period, for your convenience. You will have to pay him for that period.
In practice, you can always offer to relieve him with immediate effect. And if he accepts the offer, then he will not get paid for the remaining period. (But you need to make that clear when you offer immediate relieving). If he is the option of joining the new company earlier, he will opt for it. Or in many cases, he will opt for it to get a time to relax before joining a new company, where work will be hectic and stressful initially.
Globally, most companies have a concept of "Gardening Leave". This is a period of notice where the employee is asked not to come to office, but not to join the new company. He is to be available on call till the end of the notice period. This has advantage of being able to call him back to the office for any clarification, or for explanation of training that his replacement will need.
Ultimately, no one is going to court for 1 month salary. The cost and hassles are too high. However, it will leave a bitter taste and if you need anything in future, you will not get it from him. (Say a month later some matter has come up, which you need to ask him what he had done about it). Remember that many things are not recorded in files.
From India, Mumbai
2392In general, you will have to pay him the salary for the notice period.
The employee has resigned. He is willing to serve the notice period as required by the law.
You are asking him not to come to office for that period, for your convenience. You will have to pay him for that period.
In practice, you can always offer to relieve him with immediate effect. And if he accepts the offer, then he will not get paid for the remaining period. (But you need to make that clear when you offer immediate relieving). If he is the option of joining the new company earlier, he will opt for it. Or in many cases, he will opt for it to get a time to relax before joining a new company, where work will be hectic and stressful initially.
Globally, most companies have a concept of "Gardening Leave". This is a period of notice where the employee is asked not to come to office, but not to join the new company. He is to be available on call till the end of the notice period. This has advantage of being able to call him back to the office for any clarification, or for explanation of training that his replacement will need.
Ultimately, no one is going to court for 1 month salary. The cost and hassles are too high. However, it will leave a bitter taste and if you need anything in future, you will not get it from him. (Say a month later some matter has come up, which you need to ask him what he had done about it). Remember that many things are not recorded in files.
From India, Mumbai
I would disagree with you.
You may not find value at this time (since he has resigned).
But your agreement with him (in this case, your appointment letter) requires him to serve notice and you to pay for the time he is under notice period. As per law, you can not disown your liability just because you are not able to derive value from his work at this time.
From India, Mumbai
You may not find value at this time (since he has resigned).
But your agreement with him (in this case, your appointment letter) requires him to serve notice and you to pay for the time he is under notice period. As per law, you can not disown your liability just because you are not able to derive value from his work at this time.
From India, Mumbai
Hi Savio,
I think you are looking at this from a warped perspective.
The employee is not trying to "get the maximum from the company"
He is doing what he is required to do, under his terms of employment. That is, he is giving 1 months notice. He would have asked for a joining date 1 month later with the new company to honour his existing obligation to his current employer.
There is no concept of inconvenienced and inconveniencing party here. He is resigning, which he has a right to do. There is no bonded labour, or a commitment from his side to work for ever or work for 5 years or whatever. If he was leaving without notice, or violating his obligation, then the company would be "Inconvenienced". He has a right to get paid when he is fulfilling his obligation.
It would be illegal for the company to refuse to pay his salary for the period, unless it is mutually agreeable. You can still do it, since the employee will not bother to go to court for 1 month salary, but it does not make it less illegal fr that reason.
From India, Mumbai
I think you are looking at this from a warped perspective.
The employee is not trying to "get the maximum from the company"
He is doing what he is required to do, under his terms of employment. That is, he is giving 1 months notice. He would have asked for a joining date 1 month later with the new company to honour his existing obligation to his current employer.
There is no concept of inconvenienced and inconveniencing party here. He is resigning, which he has a right to do. There is no bonded labour, or a commitment from his side to work for ever or work for 5 years or whatever. If he was leaving without notice, or violating his obligation, then the company would be "Inconvenienced". He has a right to get paid when he is fulfilling his obligation.
It would be illegal for the company to refuse to pay his salary for the period, unless it is mutually agreeable. You can still do it, since the employee will not bother to go to court for 1 month salary, but it does not make it less illegal fr that reason.
From India, Mumbai
Dear All,
It is the moral responsibility of the employer to pay for the notice period which the employee is willing to serve, The contributions of the employee has to be acknowledged.
Mopreover the outgone and the outgoing emplyees are the mobile marketing agent for the culture of the organization. Hence it has to be paid if the case is as per the discussion subject.
Thanks,
Vivek.
From India, New Delhi
It is the moral responsibility of the employer to pay for the notice period which the employee is willing to serve, The contributions of the employee has to be acknowledged.
Mopreover the outgone and the outgoing emplyees are the mobile marketing agent for the culture of the organization. Hence it has to be paid if the case is as per the discussion subject.
Thanks,
Vivek.
From India, New Delhi
Dear All,
Thanks. There are agreements and disagreements. There is logic for both sides. However logic should be supported with some reasoning and case law. We have our opinions and opinions may not necessarily rights always.
I still prefer to have a some case law or opinion who have encountered with such situations.
Anyway thanks for passionate inputs and discussion…
Regards,
From India, Pune
Thanks. There are agreements and disagreements. There is logic for both sides. However logic should be supported with some reasoning and case law. We have our opinions and opinions may not necessarily rights always.
I still prefer to have a some case law or opinion who have encountered with such situations.
Anyway thanks for passionate inputs and discussion…
Regards,
From India, Pune
I would like to quote statements from Vinod's and Savio's (respectively) posts:
.."employee RESIGNS and is ready to serve the notice period, but company wants to relieve him IMMEDIATELY".
.."In case of a forced resignation you will have to pay the compensation for the notice period not served / enforced. In case of a voluntary resignation, there is no need to pay any compensation for the notice period not enforced".
Here in this case, the resigned employee is ready to serve notice period, but employer does not allow him to do so, is this not a forced relieving? Is this employee not be effected or inconvenienced because of employer's act?.
In my opinion, here this employee must be compensated with.
These all depends on the clause mentioned in the employment contract, whether terms are as mentioned in Mr. Saji's comments or Savio's comments.
If you take this case other way round, If employee wants to get relieved quickly, won't company deduct his notice period compensation from his full & final settlements?
Better think of win-win situation than going for complications and conflicts.
Suresh
From India, Pune
.."employee RESIGNS and is ready to serve the notice period, but company wants to relieve him IMMEDIATELY".
.."In case of a forced resignation you will have to pay the compensation for the notice period not served / enforced. In case of a voluntary resignation, there is no need to pay any compensation for the notice period not enforced".
Here in this case, the resigned employee is ready to serve notice period, but employer does not allow him to do so, is this not a forced relieving? Is this employee not be effected or inconvenienced because of employer's act?.
In my opinion, here this employee must be compensated with.
These all depends on the clause mentioned in the employment contract, whether terms are as mentioned in Mr. Saji's comments or Savio's comments.
If you take this case other way round, If employee wants to get relieved quickly, won't company deduct his notice period compensation from his full & final settlements?
Better think of win-win situation than going for complications and conflicts.
Suresh
From India, Pune
Dear All,
Though many of you have cited different situation and given necessary explanation as well. But I still feel that the query raised by Vinod is still answered.
The situation is "Employee has resigned and want to serve 1 month notice period whereas employer want to relieve him immediately". Whether Company hhas to pay for early relieving.
The correct answer is "YES" provided the resignation / termination clause reads as under "1 month notice or salary in liu there of from either side". Also the wordings of resignation letter has a great bearing on interpretetion. If it is like resignation may be acccepted and relieved on or before a particular date than the company may relieve any time during notice period and not liable to pay any amount on account of shortfall of notice period. But if the request is for 1 month then of course, Company has to pay subject to wordings in appointment letter.
Regards,
Prahalad Singh
DGM-HR
From India, Delhi
Though many of you have cited different situation and given necessary explanation as well. But I still feel that the query raised by Vinod is still answered.
The situation is "Employee has resigned and want to serve 1 month notice period whereas employer want to relieve him immediately". Whether Company hhas to pay for early relieving.
The correct answer is "YES" provided the resignation / termination clause reads as under "1 month notice or salary in liu there of from either side". Also the wordings of resignation letter has a great bearing on interpretetion. If it is like resignation may be acccepted and relieved on or before a particular date than the company may relieve any time during notice period and not liable to pay any amount on account of shortfall of notice period. But if the request is for 1 month then of course, Company has to pay subject to wordings in appointment letter.
Regards,
Prahalad Singh
DGM-HR
From India, Delhi
Dear Vinod,
Obligation on the employee is fulfilled by serving resignation with prescribed notice period. Employer can relieve the employee any time during the notice period without any compensation for the remaining period, as initiative for termination of service was on the part of the employee, not that of the employer. There is no need for any case law on the issue.
From India, Delhi
Obligation on the employee is fulfilled by serving resignation with prescribed notice period. Employer can relieve the employee any time during the notice period without any compensation for the remaining period, as initiative for termination of service was on the part of the employee, not that of the employer. There is no need for any case law on the issue.
From India, Delhi
Not sure which country you are in... There must obvipusly be some labour laws that have clauses that cover such a situation. In Zimbabwe for example it is a legal requirement to give notice either side and compensation must be given either side i.e. in case of breaches. If employer releases an employee earlier that the termination date, he is required to pay full package to termination date. If employee leaves earlier than provided at law, he/she pays employer an equivalent of salary for notice period not served. The appointment letter must therefore comply with labour laws otherwise it would be ultra vires! It's scary that you can afford tell an employee to go away. This has some major ramifications i.e. on remaining employees and the departing employees!
One interesting scenario is where you illtreat an employee and with the passage of time, you also leave and become a subordinate to that person whom you illtreated! Great. I saw this in 1991!
From Zimbabwe, Harare
One interesting scenario is where you illtreat an employee and with the passage of time, you also leave and become a subordinate to that person whom you illtreated! Great. I saw this in 1991!
From Zimbabwe, Harare
HI
If the employee tender resignation with a request to relieve him on completion of notice period, the following options are:-
1. After tendering his resignation, we have to see whether any clause to this effect is mentioned in his appointment/offer of appointment letter.
2. The management has its own discretion that the employee can be relieved immediately provided the employee has to be paid the salary for the notice period in case, the clause has been mentioned in his appointment letter which is as per law otherwise no problem.
3. Further, some company is not doing so and obtaining concurrence letter from the employee that no payment will be paid as he has resigned on his own and this will be taken as tool, even if the employee is approaching the court.
I hope this will be clear your doubt.
Regards.
R. Karunakaran
From India, Madras
If the employee tender resignation with a request to relieve him on completion of notice period, the following options are:-
1. After tendering his resignation, we have to see whether any clause to this effect is mentioned in his appointment/offer of appointment letter.
2. The management has its own discretion that the employee can be relieved immediately provided the employee has to be paid the salary for the notice period in case, the clause has been mentioned in his appointment letter which is as per law otherwise no problem.
3. Further, some company is not doing so and obtaining concurrence letter from the employee that no payment will be paid as he has resigned on his own and this will be taken as tool, even if the employee is approaching the court.
I hope this will be clear your doubt.
Regards.
R. Karunakaran
From India, Madras
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