Sunil is right in pointing out that this will set up a bad example for other employees ....
people leaving w/o a notice period is a nightmare for most cos...
eg if a sales guy leaves a cos w/o notice plus the company doesnt hv a effective CRM in place, they will lose a lot... his accounts ahll be lost forever...
surya
From India, Delhi
41people leaving w/o a notice period is a nightmare for most cos...
eg if a sales guy leaves a cos w/o notice plus the company doesnt hv a effective CRM in place, they will lose a lot... his accounts ahll be lost forever...
surya
From India, Delhi
Dear Sunil
You have to pay notice pay to him under this condition as One month notice is part of appointment letter / contract. The Only other remedy to take application from him for early relieving voluntarily. Please understand the meaning of 'NOTICE PAY'
Regards.
From India, Nasik
You have to pay notice pay to him under this condition as One month notice is part of appointment letter / contract. The Only other remedy to take application from him for early relieving voluntarily. Please understand the meaning of 'NOTICE PAY'
Regards.
From India, Nasik
I agree to Mr. Sunil Joshi's contention that it is more of a cultural issue than a legal issue. This is because normally, the appointment letter has a clause that the employee will have to serve a specified notice period before resigning from the job. Employer has also an obligation to give a similar notice to the employee before terminating his/her service. In both the cases, cash settlement in lieu of notice period can also be specified.
Looking at the logic, the notice by the employee is to enable the employer to arrange for a replacement for the employee who is resigning, which may be either by the way of recruiting a new person or by training a new person. However, if the employer already has an employee who is trained on the job that is being carried out by the departing employee, the employer may dispense with the notice period, and make it look like they are doing the employee a favour, right? Please remember that their obligation is only to relieve the employee within the notice period, and not to extend the notice period arbitrarily, which would then become illegal. But if the employer says, " we know you are supposed to give us two months' notice, but we are waiving off the notice period and are relieving you of your duties with immediate effect", would it become a breach of terms of employment? Hardly illegal, but certainly unfair, because the employee will probably be unable to support himself and his family for the rest of the planned notice period, since the employer would not be paying him any salary during the said period.
After all, not many employers consider the departing employees as their good will ambassadors, but are generally full of vengeance towards anyone resigning, given the alarming rate of attrition most of the industries are facing today.
More thoughts on this are welcome.
From India, Mumbai
Looking at the logic, the notice by the employee is to enable the employer to arrange for a replacement for the employee who is resigning, which may be either by the way of recruiting a new person or by training a new person. However, if the employer already has an employee who is trained on the job that is being carried out by the departing employee, the employer may dispense with the notice period, and make it look like they are doing the employee a favour, right? Please remember that their obligation is only to relieve the employee within the notice period, and not to extend the notice period arbitrarily, which would then become illegal. But if the employer says, " we know you are supposed to give us two months' notice, but we are waiving off the notice period and are relieving you of your duties with immediate effect", would it become a breach of terms of employment? Hardly illegal, but certainly unfair, because the employee will probably be unable to support himself and his family for the rest of the planned notice period, since the employer would not be paying him any salary during the said period.
After all, not many employers consider the departing employees as their good will ambassadors, but are generally full of vengeance towards anyone resigning, given the alarming rate of attrition most of the industries are facing today.
More thoughts on this are welcome.
From India, Mumbai
"After all, not many employers consider the departing employees as their good will ambassadors, but are generally full of vengeance towards anyone resigning, given the alarming rate of attrition most of the industries are facing today."
nicely summed up:
well it dpends on the bargaining power of the company, if they dont hv anyone to pick up the respnsibility, and these days good candidates cometimes take months to find...then thye are in areal mess..
secondly most cos fail to improve their policies/ structure/procedures/ wrong hires/ competitor standing etc on the basis on the exit interviews...
subjective question, the HR person shall hv to make the boss aware of he signifuance of various factors..
surya
From India, Delhi
nicely summed up:
well it dpends on the bargaining power of the company, if they dont hv anyone to pick up the respnsibility, and these days good candidates cometimes take months to find...then thye are in areal mess..
secondly most cos fail to improve their policies/ structure/procedures/ wrong hires/ competitor standing etc on the basis on the exit interviews...
subjective question, the HR person shall hv to make the boss aware of he signifuance of various factors..
surya
From India, Delhi
Dear Friend, It all depends on the terms and conditions that has been accepted in the joining letters. Kindly follow them. Regards, Pravin
From India, Madras
From India, Madras
Dear Liz327,
I have stated this on my earlier post and is stating this again that the Company is absolutely right in not paying "Notice Pay".
The liability of paying Notice pay by the Company arises only and only in case of termination.
In case of resignation the Company has the sole right after accepting the resignation; to decide on the date of releasing subjected to the maximum period of Notice Period as per contract of employment.
So, it is not justified to claim notice pay when a person resigns since the liability in case of company arises in case of termination and termination only.
Regards,
SC
From India, Thane
I have stated this on my earlier post and is stating this again that the Company is absolutely right in not paying "Notice Pay".
The liability of paying Notice pay by the Company arises only and only in case of termination.
In case of resignation the Company has the sole right after accepting the resignation; to decide on the date of releasing subjected to the maximum period of Notice Period as per contract of employment.
So, it is not justified to claim notice pay when a person resigns since the liability in case of company arises in case of termination and termination only.
Regards,
SC
From India, Thane
Hi I think if you are relieving him earlier, you should pay him one month salary. Please read his appointment letter. Does it read one month in lieu of notice on either side? Regards Marvin
From India, Coimbatore
From India, Coimbatore
I agree with the inputs shared by swastik73.
When the separation is triggered by the employee, the employee is obligated to serve the notice period or pay the notice pay to the extent the notice period is unserved. The employer can choose to waive off the notice period. Also, the employer is not obligated to pay any amount in case they choose to waive off the notice period.
However, in case of separation initiated by the Company, the employer should provide a notice to the employee or pay notice pay in case sufficient notice is not given. On similar lines, in such a case if the employee decides to leave earlier, the employee is not obligated to pay notice pay to the Company, as the obligation is on the employer.
Nivedita
When the separation is triggered by the employee, the employee is obligated to serve the notice period or pay the notice pay to the extent the notice period is unserved. The employer can choose to waive off the notice period. Also, the employer is not obligated to pay any amount in case they choose to waive off the notice period.
However, in case of separation initiated by the Company, the employer should provide a notice to the employee or pay notice pay in case sufficient notice is not given. On similar lines, in such a case if the employee decides to leave earlier, the employee is not obligated to pay notice pay to the Company, as the obligation is on the employer.
Nivedita
If the employee's cause of separation is due to voluntary resignation, Management has no liabilities except for the pay due to the employee as stipulated in the contract prior to his resignation.
It is one of management's prerogatives to terminate employees but due process must be observed to avoid illegal dismissal. If Management fails to give due process, the employee has the right to file a case against the management. To avoid the hassles in labor cases, management must settle it with the employee, thus compensation comes up.
From Philippines, Cebu
It is one of management's prerogatives to terminate employees but due process must be observed to avoid illegal dismissal. If Management fails to give due process, the employee has the right to file a case against the management. To avoid the hassles in labor cases, management must settle it with the employee, thus compensation comes up.
From Philippines, Cebu
Hi Liz,
Its a complicated situation, I can understand it.....
If the company had initiated termination then you could have relieved the employee with out any compensation or notice period.
Since the employee has put the resignation, and he is ready to serve the notice period , you have to go as per the terms of employment, since it is a legal obligation for the company.
--------->
Please let me know if the company wants to terminate him on ethical grounds or performance grounds....
If he has to be terminated on the performance grounds, a written communication should have been given to the employee and his notice period should have been set against the performance improvement period(followed as performance improvement plan)... and then he could have been terminated on performance grounds(A time period has to be mentioned for the same.
If he has to be terminated on the ethical grounds, same should have been documented. The grounds of offence that has been commited and a reporting procedure has to be documented, employee should be given a oppurtunity to give his comments on the offence commited and a committe comprising of HR and Senior leaders should be formed so as to evalute the offence/breach and give the decision. In which employee has to be a part and each and every aspect should have been documented.
---------------->
In case you are not satisfied with this, pls let me know the exact situation so that i can help you with a solution.
Warm Rgds
From India, Bangalore
Its a complicated situation, I can understand it.....
If the company had initiated termination then you could have relieved the employee with out any compensation or notice period.
Since the employee has put the resignation, and he is ready to serve the notice period , you have to go as per the terms of employment, since it is a legal obligation for the company.
--------->
Please let me know if the company wants to terminate him on ethical grounds or performance grounds....
If he has to be terminated on the performance grounds, a written communication should have been given to the employee and his notice period should have been set against the performance improvement period(followed as performance improvement plan)... and then he could have been terminated on performance grounds(A time period has to be mentioned for the same.
If he has to be terminated on the ethical grounds, same should have been documented. The grounds of offence that has been commited and a reporting procedure has to be documented, employee should be given a oppurtunity to give his comments on the offence commited and a committe comprising of HR and Senior leaders should be formed so as to evalute the offence/breach and give the decision. In which employee has to be a part and each and every aspect should have been documented.
---------------->
In case you are not satisfied with this, pls let me know the exact situation so that i can help you with a solution.
Warm Rgds
From India, Bangalore
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