Hi Bhaskar
Really appreciate your enlightening reply, but I din"t understand the following part of your comment:
"In case of Resignation only the employee need to be paid with Notice Pay and Retrenchment Compensation. But the resigned employee should be paid with Leave pay and Gratuity whatever he is eligible to get."
What does this mean? Also it will be helpful if you can highlight the difference between notice pay and retrenchment pay.
Regards
Anshu
From India, Delhi
4Really appreciate your enlightening reply, but I din"t understand the following part of your comment:
"In case of Resignation only the employee need to be paid with Notice Pay and Retrenchment Compensation. But the resigned employee should be paid with Leave pay and Gratuity whatever he is eligible to get."
What does this mean? Also it will be helpful if you can highlight the difference between notice pay and retrenchment pay.
Regards
Anshu
From India, Delhi
Dear Anshu
I appreciate your observation and thanks for bringing the same to my knowledge. It is due to typing error. I have omitted "not" in the first sentence.
"In case of Resignation only the employee need not to be paid with Notice Pay and Retrenchment Compensation. But the resigned employee should be paid with Leave pay and Gratuity whatever he is eligible to get."
Means the employer need not to pay the Notice Pay and Retrenchment compensation to the employee who submits his resignation, whereas the employer has to pay the Leave pay and gratuity to the employee as per his eligibility.
But for termination all the above must be given to the employee.
Notice Pay will be available in the Offer of employment and accordingly either party has to pay. The Retrenchment Compensation is to be paid with 15 days Salary for every completed 1 year of service to the employee at the time of Retrenchment of an employee.
Please refer ID Act Section 25F reproduced below for your ready reference.
Conditions precedent to retrenchment of workmen.
25F. No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
45 <link updated to site home> ( Search On Cite | Search On Google ) [***]
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay 46 <link updated to site home> [for every completed year of continuous service] or any part thereof in excess of six months;
and
(c) notice in the prescribed manner is served on the appropriate Government 47 <link updated to site home> ( Search On Cite | Search On Google ) [or such authority as may be specified by the appropriate Government by notification in the Official Gazette].
From India, Kumbakonam
I appreciate your observation and thanks for bringing the same to my knowledge. It is due to typing error. I have omitted "not" in the first sentence.
"In case of Resignation only the employee need not to be paid with Notice Pay and Retrenchment Compensation. But the resigned employee should be paid with Leave pay and Gratuity whatever he is eligible to get."
Means the employer need not to pay the Notice Pay and Retrenchment compensation to the employee who submits his resignation, whereas the employer has to pay the Leave pay and gratuity to the employee as per his eligibility.
But for termination all the above must be given to the employee.
Notice Pay will be available in the Offer of employment and accordingly either party has to pay. The Retrenchment Compensation is to be paid with 15 days Salary for every completed 1 year of service to the employee at the time of Retrenchment of an employee.
Please refer ID Act Section 25F reproduced below for your ready reference.
Conditions precedent to retrenchment of workmen.
25F. No workman employed in any industry who has been in continuous service for not less than one year under an employer shall be retrenched by that employer until—
(a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice;
45 <link updated to site home> ( Search On Cite | Search On Google ) [***]
(b) the workman has been paid, at the time of retrenchment, compensation which shall be equivalent to fifteen days' average pay 46 <link updated to site home> [for every completed year of continuous service] or any part thereof in excess of six months;
and
(c) notice in the prescribed manner is served on the appropriate Government 47 <link updated to site home> ( Search On Cite | Search On Google ) [or such authority as may be specified by the appropriate Government by notification in the Official Gazette].
From India, Kumbakonam
Dear
The importance/purpose of 1 month notice period from both parties point of view.
If employee is submitting resignation, then 1month notice is required to be given, which gives an employer, time to take necessary steps to fill the gaps.
If employer is terminating an employee then 1month salary/1month notice is given which would support the employee till he gets another livelihood.
Notice period clause becomes applicable to both the parties.
JMK
From India, Hyderabad
The importance/purpose of 1 month notice period from both parties point of view.
If employee is submitting resignation, then 1month notice is required to be given, which gives an employer, time to take necessary steps to fill the gaps.
If employer is terminating an employee then 1month salary/1month notice is given which would support the employee till he gets another livelihood.
Notice period clause becomes applicable to both the parties.
JMK
From India, Hyderabad
Thank you all for the contribution.
Dear S. Bhaskar
However i want to understand clearly what you wrote above.
Do you mean that if an employee has exceed more than a year in an organisation and he is eventually sacked. His entitlement should include Gratuity+Leave pay for the year+two weeks in lieu of notice+salary prorated?
From Nigeria, Akowonjo
Dear S. Bhaskar
However i want to understand clearly what you wrote above.
Do you mean that if an employee has exceed more than a year in an organisation and he is eventually sacked. His entitlement should include Gratuity+Leave pay for the year+two weeks in lieu of notice+salary prorated?
From Nigeria, Akowonjo
@ JMK
I really appreciate your comment, do you mean one month salary+one month notice or either of them?
However the employee in question even received more than his salary for a month after calculating the days worked + 2weeks in lieu of notice.
Thanks.
Tosin.
From Nigeria, Akowonjo
I really appreciate your comment, do you mean one month salary+one month notice or either of them?
However the employee in question even received more than his salary for a month after calculating the days worked + 2weeks in lieu of notice.
Thanks.
Tosin.
From Nigeria, Akowonjo
hiu
as a HR person, please dont immediately dont try to punish a person / employee. if case of any misconduct, and if it cause any damage to the company's property then you may take action against the employee. you must have a valid and approved standing order mentioning that such and such misconducts are punishable .
But keep it in mind and be reasonable on your act. Punishment is not the only solution for all . Make hime realise the mistake committed and try to feel better.
regards
r devarajan
From India, Madras
as a HR person, please dont immediately dont try to punish a person / employee. if case of any misconduct, and if it cause any damage to the company's property then you may take action against the employee. you must have a valid and approved standing order mentioning that such and such misconducts are punishable .
But keep it in mind and be reasonable on your act. Punishment is not the only solution for all . Make hime realise the mistake committed and try to feel better.
regards
r devarajan
From India, Madras
Dear Pankaj,
A company (ltd or pvt. ltd) registered under factory act or any another act is bound to pay the notice pay otherwise legal action can be taken by an employee. Notice pay is the social security to an employee n remember, most of the laws are in favor of labours or employees.
HR Representative duty is to get the win win situation to both parties.
From India, Gurgaon
A company (ltd or pvt. ltd) registered under factory act or any another act is bound to pay the notice pay otherwise legal action can be taken by an employee. Notice pay is the social security to an employee n remember, most of the laws are in favor of labours or employees.
HR Representative duty is to get the win win situation to both parties.
From India, Gurgaon
Hi,
If an employee is found in negligence of duties;
1. was any show cause notice served to him.?
2. any inquiry conducted? If in an enquiry even if he is found quilty and the employer wants to terminate his service then also he as to give one months notice or salary in lieu thereoff.
We do not work for the employer we work for the organisation and do justice to your job by being neutral and then take any decission that is not lop sided. As an organisation supports the employees and their family hence we need to work in that direction.
An employee does not have access to the employer and employers are business men and business men want only money we are appointed to take care of human resource to let his business grow and do not get entangled in any legal hassles.
Sanjeev
From India, Pune
If an employee is found in negligence of duties;
1. was any show cause notice served to him.?
2. any inquiry conducted? If in an enquiry even if he is found quilty and the employer wants to terminate his service then also he as to give one months notice or salary in lieu thereoff.
We do not work for the employer we work for the organisation and do justice to your job by being neutral and then take any decission that is not lop sided. As an organisation supports the employees and their family hence we need to work in that direction.
An employee does not have access to the employer and employers are business men and business men want only money we are appointed to take care of human resource to let his business grow and do not get entangled in any legal hassles.
Sanjeev
From India, Pune
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