HI,
First of all, if management took the decision on relieving the employee within 15 days (according to your mail, employee requested only at the earliest and not mentioned period), therefore you have to pay full amount and you cannot deduct any thing.
Second, the decision on payment issue belongs to HR, but doesn't belongs to Accounts Department, therefore Accounts Department cannot involve in this.
HR department gives clear instructions, how much amount can be given to the employee at the time of relieving and Accounts Department will implement the same.
Regards,
Manjunath
From India, Hyderabad
7First of all, if management took the decision on relieving the employee within 15 days (according to your mail, employee requested only at the earliest and not mentioned period), therefore you have to pay full amount and you cannot deduct any thing.
Second, the decision on payment issue belongs to HR, but doesn't belongs to Accounts Department, therefore Accounts Department cannot involve in this.
HR department gives clear instructions, how much amount can be given to the employee at the time of relieving and Accounts Department will implement the same.
Regards,
Manjunath
From India, Hyderabad
Dear All,
Thank you for your valuable responses.
What I am stressing at is the Concept of Notice Pay and not about the legality of the action. I understand and agree what the employer done is correct.
I would like to bring to the notice of all that the liability to make Notice Pay is there in the Industrial Disputes Act, 1947(Chapters on Retrenchment and Closure). It was enacted on a socialistic angle to protect workers and given them time to find near jobs and meeting their needs in the meantime.
The Act also kept in mind the capacity to pay of employers by keeping the Notice period one month for small and three months for large organisation.
The system of making employees pay was introduced in the Private Sector with the view to allow the Company space and time in finding
replacement, settlement of dues and recovering if any and handling over of charges and responsibility to the new recruit by the employee who has resigned.
In absence of the above it is really a question on why an employer would want to deduct notice pay as the very basis on which it was inserted in absent.
I am trying to hit at this point only.
Regards,
SC
From India, Thane
Thank you for your valuable responses.
What I am stressing at is the Concept of Notice Pay and not about the legality of the action. I understand and agree what the employer done is correct.
I would like to bring to the notice of all that the liability to make Notice Pay is there in the Industrial Disputes Act, 1947(Chapters on Retrenchment and Closure). It was enacted on a socialistic angle to protect workers and given them time to find near jobs and meeting their needs in the meantime.
The Act also kept in mind the capacity to pay of employers by keeping the Notice period one month for small and three months for large organisation.
The system of making employees pay was introduced in the Private Sector with the view to allow the Company space and time in finding
replacement, settlement of dues and recovering if any and handling over of charges and responsibility to the new recruit by the employee who has resigned.
In absence of the above it is really a question on why an employer would want to deduct notice pay as the very basis on which it was inserted in absent.
I am trying to hit at this point only.
Regards,
SC
From India, Thane
Hi Swastik,
Normally the notice pay is given on either side, both from the employee as well as from the employer. The employee has to give notice in advance so that depending on the importance of the position, the management can look out for other alternative so that he can be handed over the charge before the resigned employee leaves the organization. Likewise, the employer has to give one month notice to enable the employee to search for other alternative job (this is applicable to non-workmen cadre only). It is purely at the discretion of the management and the employee to give notice or not and to pay the notice pay or not. Even there are instances where settlements are made within one hour after submission of resignation by an employee and whatever is written in the appointment order or service rules will be followed without any deviation. It depends on how the particular department and the management views the resignation of an employee.
In addition, Accounts people cannot deduct the notice period amount unless and until there are instructions to do so from the HR/Personnel department and they should go by what was mentioned and approved in the full and final settlement statement. That's all.
Regards,
PRADEEP
From India, Hyderabad
Normally the notice pay is given on either side, both from the employee as well as from the employer. The employee has to give notice in advance so that depending on the importance of the position, the management can look out for other alternative so that he can be handed over the charge before the resigned employee leaves the organization. Likewise, the employer has to give one month notice to enable the employee to search for other alternative job (this is applicable to non-workmen cadre only). It is purely at the discretion of the management and the employee to give notice or not and to pay the notice pay or not. Even there are instances where settlements are made within one hour after submission of resignation by an employee and whatever is written in the appointment order or service rules will be followed without any deviation. It depends on how the particular department and the management views the resignation of an employee.
In addition, Accounts people cannot deduct the notice period amount unless and until there are instructions to do so from the HR/Personnel department and they should go by what was mentioned and approved in the full and final settlement statement. That's all.
Regards,
PRADEEP
From India, Hyderabad
Dear Swastik,
"Earliest possible" means before "Notice period" as per terms & conditions of service/standing order. So no question of confusion.
Hence management can deduct. If management attitude towards employee is not positive then it happens otherwise THEY SHOULD NOT DEDUCT ANY MONEY bze EMPLOYEE ONLY REQUESTED to releive AS EARLY AS POSSIBLE. Employee was willing to work till notice period if management will not accept his request. as per resignation letter.
Based on humanaterian ground, management should not deduct any such sum.
Regards
Sidheshwar
From India, Bangalore
"Earliest possible" means before "Notice period" as per terms & conditions of service/standing order. So no question of confusion.
Hence management can deduct. If management attitude towards employee is not positive then it happens otherwise THEY SHOULD NOT DEDUCT ANY MONEY bze EMPLOYEE ONLY REQUESTED to releive AS EARLY AS POSSIBLE. Employee was willing to work till notice period if management will not accept his request. as per resignation letter.
Based on humanaterian ground, management should not deduct any such sum.
Regards
Sidheshwar
From India, Bangalore
Dear All
If employee has mentioned in his resignation that he wants to serve a notice period of one month and the company decides to relieve him early the company cannot deduct the notice period pay but if the employee has himself requested for the early relieving then the due notice period pay needs to be adjusted against the earned leaves.
Aneesh
If employee has mentioned in his resignation that he wants to serve a notice period of one month and the company decides to relieve him early the company cannot deduct the notice period pay but if the employee has himself requested for the early relieving then the due notice period pay needs to be adjusted against the earned leaves.
Aneesh
Swastik -do you mean to say that the vacancy casued by this employee's resignation will not be filled up, so therefore there is no question of needing time to find a replacement and handing over charge to him?
If yes, then I do not think the notice pay should have been deducted, because the company does need any time to find a suitable replacement. And the recovery of dues and outstandings must have been done in the 15 days itself. However, the HR dept or Dept Head should EXPLICITLY inform Accounts not to deduct Notice pay, this being a rare situation.
If no, if a replacement is needed, then Accounts Dept has done the right thing by deducting notice pay, as u have urself acknowledged.
Regards,
Devjit
From India, Gurgaon
If yes, then I do not think the notice pay should have been deducted, because the company does need any time to find a suitable replacement. And the recovery of dues and outstandings must have been done in the 15 days itself. However, the HR dept or Dept Head should EXPLICITLY inform Accounts not to deduct Notice pay, this being a rare situation.
If no, if a replacement is needed, then Accounts Dept has done the right thing by deducting notice pay, as u have urself acknowledged.
Regards,
Devjit
From India, Gurgaon
Dear All,
Thank you for the responses. Sid, you are right in your interpretation but what I want to say is this should a policy of a Company depends on the relationship it have with an individual employee?? Policy should be same for all. The other thing is the decision of release date was left with the Company and not the employee.
My point is that once you accept someone's resignation and release him, it signify that he has cleared all dues and proper charge handing over had been done.
No point of time did the employee leave the organisation, he waited for the Company to find suitable replacement, handed over charges and all dues payable was adjusted and settled.
Regards,
SC
From India, Thane
Thank you for the responses. Sid, you are right in your interpretation but what I want to say is this should a policy of a Company depends on the relationship it have with an individual employee?? Policy should be same for all. The other thing is the decision of release date was left with the Company and not the employee.
My point is that once you accept someone's resignation and release him, it signify that he has cleared all dues and proper charge handing over had been done.
No point of time did the employee leave the organisation, he waited for the Company to find suitable replacement, handed over charges and all dues payable was adjusted and settled.
Regards,
SC
From India, Thane
Dear Swastik,
Your querry is right.....policy is for all, not for any individual. But I would like to highlight that our company has made such provision to consider based on gravity of case/situation. In our company we are suppose to give 3 months notice but one clause also included in favour of employee that management has right to take right decision whether to deduct or not. So every thing depend upon management decision under applicable laws.
Regards
Sidheshwar
From India, Bangalore
Your querry is right.....policy is for all, not for any individual. But I would like to highlight that our company has made such provision to consider based on gravity of case/situation. In our company we are suppose to give 3 months notice but one clause also included in favour of employee that management has right to take right decision whether to deduct or not. So every thing depend upon management decision under applicable laws.
Regards
Sidheshwar
From India, Bangalore
Swastik :
Siddhu is correct.
In the case presented by you, the employee prefers to leave early. Hence the notice period clause is effective. Company can deduct payment for the shortfall of notice period.
Despite the common rule on notice period and recovery clause, management can take a decision on waiver of the clause.
Rgds. Venkat
From India, Mumbai
Siddhu is correct.
In the case presented by you, the employee prefers to leave early. Hence the notice period clause is effective. Company can deduct payment for the shortfall of notice period.
Despite the common rule on notice period and recovery clause, management can take a decision on waiver of the clause.
Rgds. Venkat
From India, Mumbai
My opinion:
Having accepted the resignation the company has effectively waived the notice period.
Since the requirement for the notice period has been waived- the question of deducting 15 days wages does not arise.
Ofcourse it would be advisable to check the exact wordings of the correspondence excahnged between the management and employee.
Thanks,
Sinceely,
S.D.Lahkar.
From India, Delhi
Having accepted the resignation the company has effectively waived the notice period.
Since the requirement for the notice period has been waived- the question of deducting 15 days wages does not arise.
Ofcourse it would be advisable to check the exact wordings of the correspondence excahnged between the management and employee.
Thanks,
Sinceely,
S.D.Lahkar.
From India, Delhi
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