Hi Anonymous
Please go through the termination clause and Bonus clause.
Most of the Bonus clauses will state such, If an employee resigns, gives notice of termination or his/her employment terminates with the Company for any reason (whether voluntarily or involuntarily) prior to the date a bonus payment is made, the employee will not be eligible to receive any payment under the bonus clause of the company.
If your company policy is stating the above clause then you would not be eligible for Bonus payment because the target date is 31st March 2013 and you have resigned in Jan 2013 itself. Hence I would suggest you to go through the clause clearly.
Regarding the Notice Period - If the clause states that termination on either side by notice or payment in lieu then you would be eligible for Notice Period Pay for the remaning days.
These are my suggestion and thoughts
Thanks and Regards
Srinivas Marnade
From India, Hyderabad
5Please go through the termination clause and Bonus clause.
Most of the Bonus clauses will state such, If an employee resigns, gives notice of termination or his/her employment terminates with the Company for any reason (whether voluntarily or involuntarily) prior to the date a bonus payment is made, the employee will not be eligible to receive any payment under the bonus clause of the company.
If your company policy is stating the above clause then you would not be eligible for Bonus payment because the target date is 31st March 2013 and you have resigned in Jan 2013 itself. Hence I would suggest you to go through the clause clearly.
Regarding the Notice Period - If the clause states that termination on either side by notice or payment in lieu then you would be eligible for Notice Period Pay for the remaning days.
These are my suggestion and thoughts
Thanks and Regards
Srinivas Marnade
From India, Hyderabad
Hi Anonymous,
First and foremost, it is never advisable to quit your job unless you have the other one on hand. If you do that
you are reducing your market value.
Are you working with a BPO or a multinational? This kind of practices are normally followed by BPOs and
Multinational who do not follow the Indian Employment Regulations. If your bonus entitlement specifies that you are eligible for bonus only if you continue to work till 31st March, then you are in a problem because by asking for relieving date as 13th March, you are not fulfilling the contract and company is not liable to pay your bonus.
As per my knowledge, if an employee resigns, the company has a right to relieve the employee even after confirmation of the date of relieving. But this will be done subject to payment of his/her full dues till the date of relieving as mentioned in the resignation and acceptance. This means you will not be attending the office but will be paid your salary and dues you are eligible to receive.
I would suggest, talk to your HOD, take him into confidence, explain the issues and ask him to recommend full payment based on your performance record till date. Or compromise and accept reduced bonus amount.
Lastly never quit a job until you have a good, new and secured job in hand.
Wishing you all the best
Archana Bhatt
First and foremost, it is never advisable to quit your job unless you have the other one on hand. If you do that
you are reducing your market value.
Are you working with a BPO or a multinational? This kind of practices are normally followed by BPOs and
Multinational who do not follow the Indian Employment Regulations. If your bonus entitlement specifies that you are eligible for bonus only if you continue to work till 31st March, then you are in a problem because by asking for relieving date as 13th March, you are not fulfilling the contract and company is not liable to pay your bonus.
As per my knowledge, if an employee resigns, the company has a right to relieve the employee even after confirmation of the date of relieving. But this will be done subject to payment of his/her full dues till the date of relieving as mentioned in the resignation and acceptance. This means you will not be attending the office but will be paid your salary and dues you are eligible to receive.
I would suggest, talk to your HOD, take him into confidence, explain the issues and ask him to recommend full payment based on your performance record till date. Or compromise and accept reduced bonus amount.
Lastly never quit a job until you have a good, new and secured job in hand.
Wishing you all the best
Archana Bhatt
Greetings sir viewers
this is Ramakrishna i have bean working as hr in small organization and i am dealing with pay roll policy
but i don't know any thing about pay roll policy please can any one help me
thanking you sir
From India, Chennai
this is Ramakrishna i have bean working as hr in small organization and i am dealing with pay roll policy
but i don't know any thing about pay roll policy please can any one help me
thanking you sir
From India, Chennai
If you are an eligible employee and has worked for more than 30 days during the financial year,you shall certainly be entitled to receive bonus for that financial year.The reason is that it is a statutory liability and cannot be deprieved to an employee by making any contradictory provisions in the service rules of the Company.Moreover, if there is any conflict between the statue and the service rules of the Company,then the former will prevail.It is immaterial whether bonus was declared prior to or subsequent to your release order.If it is not paid,you can challenge it before the court.
From India, Delhi
From India, Delhi
Dear All ,
I have gone through all the opinions on both the issues,i.e. Notice period and the eligibility for the performance pay.
I am sorry to say that on the first issue, I have entirely different opinion.
It is relevant to refer the relevant clauses in the offer of appointment. In all probabilities, it says that either party may terminate the contract of employment by giving one/three months notice or salary in lieu thereof.
If an employee decides to terminate such employment contract, he has to give a notice of termination of contract of employment (resignation) and serve for the period of notice or deposit the salary in lieu thereof. why is such provision? This period is required to be given to the employer to make alternative arrangement, so that in the absence of resigning employee his business does not get adversely affected.
Likewise, when termination of contract of employment is initiated by the employer, he is bound to give a notice of termination with a notice period (of one/three months). why this period is given by the employer? This perod will be utilised by the employee to find out another employment.
Now in the light of above, it would be evident that in case of resignation by the employee( termination of contract of employment), it will be the right of employer to get three months notice.However,in the event, employer is in a position to relieve you before three months, you cannot force him to continue till the expiry of three months. In fact, employer in such case may relieve you on any day during the period of notice.
On the second issue, I agree to the opinion of Mr. Srinivas Marnade to certain extent, however, there is still some possibility to get your performance pay on pro rata basis for the period you served, provided you are ready to challenge the arbitrary policy on the subject made by the employer.
From India, Pune
I have gone through all the opinions on both the issues,i.e. Notice period and the eligibility for the performance pay.
I am sorry to say that on the first issue, I have entirely different opinion.
It is relevant to refer the relevant clauses in the offer of appointment. In all probabilities, it says that either party may terminate the contract of employment by giving one/three months notice or salary in lieu thereof.
If an employee decides to terminate such employment contract, he has to give a notice of termination of contract of employment (resignation) and serve for the period of notice or deposit the salary in lieu thereof. why is such provision? This period is required to be given to the employer to make alternative arrangement, so that in the absence of resigning employee his business does not get adversely affected.
Likewise, when termination of contract of employment is initiated by the employer, he is bound to give a notice of termination with a notice period (of one/three months). why this period is given by the employer? This perod will be utilised by the employee to find out another employment.
Now in the light of above, it would be evident that in case of resignation by the employee( termination of contract of employment), it will be the right of employer to get three months notice.However,in the event, employer is in a position to relieve you before three months, you cannot force him to continue till the expiry of three months. In fact, employer in such case may relieve you on any day during the period of notice.
On the second issue, I agree to the opinion of Mr. Srinivas Marnade to certain extent, however, there is still some possibility to get your performance pay on pro rata basis for the period you served, provided you are ready to challenge the arbitrary policy on the subject made by the employer.
From India, Pune
Dear All,
The concern raised by Mr. Jha should must be appreciated. The logic for the termination of employment contract (from either side) is 100% correct. But, in concern of payment terms, even if the employer wants to relieve the employee before the end of his / her notice period, its employer's liability to pay the complete amount i.e. Salary till the notice period, bonus, LTA, Medical Claim, Unpaid Leave ect whatsoever with his F & F Settlement.
We must understand that "why the notice period is required in case of termination of employment contract (from either side)" and "salary and other benefits should be paid to employee or not in any such cases" ; both are different issues.
Again, for employees benefits (other than salary), everything should must be calculated assuming the relieving date (as per the notice period) as the last working day of employee even if the employer does not want his / her services till the last day of notice period.
This is what I have stated as per my knowledge and experience. I would be grateful if someone can provide me written statuary evidence regarding such issues.
Regards,
Prabhat
0970470475
From India, Mumbai
The concern raised by Mr. Jha should must be appreciated. The logic for the termination of employment contract (from either side) is 100% correct. But, in concern of payment terms, even if the employer wants to relieve the employee before the end of his / her notice period, its employer's liability to pay the complete amount i.e. Salary till the notice period, bonus, LTA, Medical Claim, Unpaid Leave ect whatsoever with his F & F Settlement.
We must understand that "why the notice period is required in case of termination of employment contract (from either side)" and "salary and other benefits should be paid to employee or not in any such cases" ; both are different issues.
Again, for employees benefits (other than salary), everything should must be calculated assuming the relieving date (as per the notice period) as the last working day of employee even if the employer does not want his / her services till the last day of notice period.
This is what I have stated as per my knowledge and experience. I would be grateful if someone can provide me written statuary evidence regarding such issues.
Regards,
Prabhat
0970470475
From India, Mumbai
Termination of an employment contract can be done by either party i.e. employer or employee subject to comliance with the termination-clause contained in the said contract.If there is a provision to terminate the contract at any time by either party by serving 3 months notice or 3 months pay in lieu thereof,then the employer/employee has to comply with the same.However, it is fully at the discretion of the employer to wave the notice period.
In view of the above, if the employee has served a notice and the employer has accepted the same,then in case of releasing him before the date specified in the notice, the employer has to pay him for the premature termination.
From India, Delhi
In view of the above, if the employee has served a notice and the employer has accepted the same,then in case of releasing him before the date specified in the notice, the employer has to pay him for the premature termination.
From India, Delhi
Dear Prabhat,
As far as the bonus is concerned, you will have to check the HR policy on the same. however as far as the date of relieving is concerned, the company has the right to relieve you earlier since you are the one who has given notice to the company. Similarly if the company gives you notice, they will have to give you a three months notice, but you have the right to leave earlier if you so desire.
The company gives you time so that you can plan your resettlement and Individual gives notice so that the company can plan your reliever.
For the bonus go through the company policy on bonus where there would be a cut off date for bonus or minimum period to be served in a year when bonus becomes due. so quote the policy and ask for your bonus. Max the company can reduce your bonus on prorata basis.
Have a nice Day
Manoj
From India, Delhi
As far as the bonus is concerned, you will have to check the HR policy on the same. however as far as the date of relieving is concerned, the company has the right to relieve you earlier since you are the one who has given notice to the company. Similarly if the company gives you notice, they will have to give you a three months notice, but you have the right to leave earlier if you so desire.
The company gives you time so that you can plan your resettlement and Individual gives notice so that the company can plan your reliever.
For the bonus go through the company policy on bonus where there would be a cut off date for bonus or minimum period to be served in a year when bonus becomes due. so quote the policy and ask for your bonus. Max the company can reduce your bonus on prorata basis.
Have a nice Day
Manoj
From India, Delhi
Dear jhadevbrat
I differ with your contention that it will be the right of employer to relieve before three months.
This is only acceptable in case the employer pays the notice pay for thee remaining period of the notice i.e. 3 months.
This matter has also been discussed several times on this forum. Irrespective of whether your company practices this; it can not be termed fair or legal. Else, companies will keep having a longer notice period (say six months or 1 year) and whenever an employee puts up a resignation notice, they can RELIEVE that employee Without Pay !!!!
The best way to understand such unfairness is to view things from the other side; having empathy i.e. put oneself in place of the employee. Then the matter will become crystal clear.
Warm regards.
From India, Delhi
I differ with your contention that it will be the right of employer to relieve before three months.
This is only acceptable in case the employer pays the notice pay for thee remaining period of the notice i.e. 3 months.
This matter has also been discussed several times on this forum. Irrespective of whether your company practices this; it can not be termed fair or legal. Else, companies will keep having a longer notice period (say six months or 1 year) and whenever an employee puts up a resignation notice, they can RELIEVE that employee Without Pay !!!!
The best way to understand such unfairness is to view things from the other side; having empathy i.e. put oneself in place of the employee. Then the matter will become crystal clear.
Warm regards.
From India, Delhi
Dear Mr. Manoj,
Once again we are mistaken to understand the primary issue. Being an HR Professional, we should must be specific to the point. I do agree with what you have stated in favor of right of termination of employment agreement, followed by relieving of employee (by either parties). But in regards of the payment terms, it is obligatory from both side to pay complete notice period amount, along with all other statuary benefits.
Regards,
Prabhat
From India, Mumbai
Once again we are mistaken to understand the primary issue. Being an HR Professional, we should must be specific to the point. I do agree with what you have stated in favor of right of termination of employment agreement, followed by relieving of employee (by either parties). But in regards of the payment terms, it is obligatory from both side to pay complete notice period amount, along with all other statuary benefits.
Regards,
Prabhat
From India, Mumbai
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