Dear Khan,
I think there is an ambiguity in your query. An employee worked for a company for 5 years. At a point in time, the company was not happy with his performance and asked him to resign. You state that they deducted 1 month's salary from the full and final settlement.
A. Did they deduct the salary for 1 month that the employee actually worked before he resigned?
B. OR did they deduct the salary for the notice period that the employee was not allowed to complete?
If it is A, there is no excuse, and the action is both wrong in law and in principle/ethics.
If it is B, they are free to relieve the employee immediately after resignation. It is the wish of the company. In terms of ethics, since they asked for resignation, they should have given him the salary. In terms of legality, their action is not out of line (I am sure there is no written request to the employee to resign).
A bit depends also on the resignation letter. Did he say he will complete notice pay? Or did he ask for immediate relieving?
From India, Mumbai
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2638I think there is an ambiguity in your query. An employee worked for a company for 5 years. At a point in time, the company was not happy with his performance and asked him to resign. You state that they deducted 1 month's salary from the full and final settlement.
A. Did they deduct the salary for 1 month that the employee actually worked before he resigned?
B. OR did they deduct the salary for the notice period that the employee was not allowed to complete?
If it is A, there is no excuse, and the action is both wrong in law and in principle/ethics.
If it is B, they are free to relieve the employee immediately after resignation. It is the wish of the company. In terms of ethics, since they asked for resignation, they should have given him the salary. In terms of legality, their action is not out of line (I am sure there is no written request to the employee to resign).
A bit depends also on the resignation letter. Did he say he will complete notice pay? Or did he ask for immediate relieving?
From India, Mumbai
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No employee can be terminated on the basis of poor performance. If forced resignation is a routine practice in the case of poor performance, this is not at all a good HR practice. This tool must be used only in extreme cases, and even if this tool is used, notice pay shall be paid by the company to the concerned employee.
The problem of the so-called poor performance can be solved by personal counseling and providing proper training. In many cases, some good employees are also labeled as poor performers due to job ambiguity. Therefore, job clarity must be established, and clear communication of jobs and responsibilities must be provided to the employee. It is also necessary to check whether an employee is interested in performing that job. It is preferable for the employer to assess the employee's interest in performing a particular job and fitting into the culture before hiring.
Job rotation, changes in job profiles, proper training, and counseling can make a remarkable difference in an employee's performance. It is highly unjust if an employee is labeled as a poor performer only by superficial analysis. Unfortunately, many senior managers also do this.
From India, Mumbai
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The problem of the so-called poor performance can be solved by personal counseling and providing proper training. In many cases, some good employees are also labeled as poor performers due to job ambiguity. Therefore, job clarity must be established, and clear communication of jobs and responsibilities must be provided to the employee. It is also necessary to check whether an employee is interested in performing that job. It is preferable for the employer to assess the employee's interest in performing a particular job and fitting into the culture before hiring.
Job rotation, changes in job profiles, proper training, and counseling can make a remarkable difference in an employee's performance. It is highly unjust if an employee is labeled as a poor performer only by superficial analysis. Unfortunately, many senior managers also do this.
From India, Mumbai
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Taking the case submitted in the forum, it is felt that as per natural justice, if an employee is dismissed for poor performance during the present, but no issues were raised during the past five years. Of course, it is the assessment and evaluation of the manager/team leader, hence no postmortem now.
If an employee is asked to leave, it is the primary responsibility of the HR Manager/Company to settle the account with all the pending amounts payable to the employee. This includes gratuity for his past services for five years, any leave, especially earned/annual/privilege leave, bonus/incentive, and any other payments as per the company's policy.
The employee should not be harassed with any other assignments whatsoever while quitting the company.
If any other conditions are stipulated to the employee by the company or by the HRD, it is intentional to aggravate the concerned employee.
From India, Pune
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If an employee is asked to leave, it is the primary responsibility of the HR Manager/Company to settle the account with all the pending amounts payable to the employee. This includes gratuity for his past services for five years, any leave, especially earned/annual/privilege leave, bonus/incentive, and any other payments as per the company's policy.
The employee should not be harassed with any other assignments whatsoever while quitting the company.
If any other conditions are stipulated to the employee by the company or by the HRD, it is intentional to aggravate the concerned employee.
From India, Pune
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Dear NK,
Employment is a contract that generally states it can be terminated by either party by giving one month's notice on either side or salary in lieu thereof. When you resign, it becomes difficult to determine whether you were asked to resign or did so voluntarily. The implementation of this clause is audited by the auditor.
Therefore, it is crucial that the resignation letter is worded properly.
If you were asked to resign, you should have stated, "I am resigning with one month's notice and should be released upon its expiry." By clearly expressing this, the company would have released you immediately and paid one month's salary in lieu of notice, as they have shortened the notice period. If you resigned and requested immediate release without salary deduction, it indicates a forced resignation, which must be noted in any testimonial or future reference. Failing to do so undermines the purpose of requesting resignation. I trust you comprehend the importance of correctly wording a resignation letter.
B R Grovedr
From India, Delhi
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Employment is a contract that generally states it can be terminated by either party by giving one month's notice on either side or salary in lieu thereof. When you resign, it becomes difficult to determine whether you were asked to resign or did so voluntarily. The implementation of this clause is audited by the auditor.
Therefore, it is crucial that the resignation letter is worded properly.
If you were asked to resign, you should have stated, "I am resigning with one month's notice and should be released upon its expiry." By clearly expressing this, the company would have released you immediately and paid one month's salary in lieu of notice, as they have shortened the notice period. If you resigned and requested immediate release without salary deduction, it indicates a forced resignation, which must be noted in any testimonial or future reference. Failing to do so undermines the purpose of requesting resignation. I trust you comprehend the importance of correctly wording a resignation letter.
B R Grovedr
From India, Delhi
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Dear Khan,
Following are the scenarios:
1. Employee is under probation/training during which period notice period is not required to be served by both parties:
- Resignation on employee's own accord - Notice period not required/notice period money need not be paid.
- Resignation sought by company - Notice period not required to be paid. Even if the employee wants to serve the notice period, the company can relieve without notice pay.
2. If the employee is confirmed OR as per the appointment letter, the notice period is required to be served to terminate services by either of the parties:
- Resignation on the employee's own accord - Notice period to be served/Notice period pay needs to be paid to the company.
- Resignation sought by the company - If the employee wants to serve the notice period, the company needs to pay if they want to relieve early. If the employee mentions "pl. relieve immediately" or indicates any such message, the employer can relieve the employee as requested by the employee but need not pay the notice period pay.
From India, Hyderabad
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Following are the scenarios:
1. Employee is under probation/training during which period notice period is not required to be served by both parties:
- Resignation on employee's own accord - Notice period not required/notice period money need not be paid.
- Resignation sought by company - Notice period not required to be paid. Even if the employee wants to serve the notice period, the company can relieve without notice pay.
2. If the employee is confirmed OR as per the appointment letter, the notice period is required to be served to terminate services by either of the parties:
- Resignation on the employee's own accord - Notice period to be served/Notice period pay needs to be paid to the company.
- Resignation sought by the company - If the employee wants to serve the notice period, the company needs to pay if they want to relieve early. If the employee mentions "pl. relieve immediately" or indicates any such message, the employer can relieve the employee as requested by the employee but need not pay the notice period pay.
From India, Hyderabad
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If the said person mentions in the resignation letter "resigned as per company's demand" duly acknowledged by the management, he can approach the concerned ACL for its redressal.
If proof is not available, the company will treat this as a voluntary resignation and will recover one month's notice pay as per practice/contract.
Regards,
S Rao
From India, Hyderabad
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If proof is not available, the company will treat this as a voluntary resignation and will recover one month's notice pay as per practice/contract.
Regards,
S Rao
From India, Hyderabad
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I think there is an ambiguity in your query. An employee worked for a company for 5 years. At a point in time, the company was not happy with his performance and asked him to resign. You state that they deducted 1 month's salary from the full and final payment.
A. Did they deduct the salary for the 1 month that the employee actually worked before he resigned?
B. OR did they deduct the salary for the notice period that the employee was not allowed to complete?
Here, the case is B: He has been asked to resign and agreed to serve the notice period of 1 month as per his contract of employment. Now, the organization has accepted his resignation with immediate effect and deducted the one-month notice period.
Attribution: https://www.citehr.com/460645-notice...#ixzz2UgBfc69Q
From India, Delhi
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A. Did they deduct the salary for the 1 month that the employee actually worked before he resigned?
B. OR did they deduct the salary for the notice period that the employee was not allowed to complete?
Here, the case is B: He has been asked to resign and agreed to serve the notice period of 1 month as per his contract of employment. Now, the organization has accepted his resignation with immediate effect and deducted the one-month notice period.
Attribution: https://www.citehr.com/460645-notice...#ixzz2UgBfc69Q
From India, Delhi
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Dear MN KHAN,
I second Debddatta. Ethically, the company could have paid the notice pay, but as it is not a termination; the company reserves the right to deduct the notice pay. A lot depends on the employee's resignation letter, which mentions the notice period. The employee stands a chance to get the salary if:
1. He can prove that he was ready to serve the notice period, but management demanded immediate relieving.
2. He has the termination in writing, as any verbal intimations do not hold true in the eyes of the law.
Furthermore, you might want to revisit the performance evaluation process in the company. Asking a 5-year-old employee to leave immediately due to a performance issue, especially based on the last 9 months, is strange.
Regards,
Hiral Mehta
From India, Ahmedabad
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I second Debddatta. Ethically, the company could have paid the notice pay, but as it is not a termination; the company reserves the right to deduct the notice pay. A lot depends on the employee's resignation letter, which mentions the notice period. The employee stands a chance to get the salary if:
1. He can prove that he was ready to serve the notice period, but management demanded immediate relieving.
2. He has the termination in writing, as any verbal intimations do not hold true in the eyes of the law.
Furthermore, you might want to revisit the performance evaluation process in the company. Asking a 5-year-old employee to leave immediately due to a performance issue, especially based on the last 9 months, is strange.
Regards,
Hiral Mehta
From India, Ahmedabad
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