Dear Rakesh,
You are an HR,
You see that there is a one month notice period in the service letter.
Do we need to give any suggestions here?
It goes without saying that either party has to give one month's notice before separation.
Be it he resigning or you terminating.
You mention company don't want to continue with his employment.
Fair enough.
Do you have solid reason for same?
Perhaps you may have a solution then.
As per the rule, you are to serve the notice period.
If the employee wants an early release, he is to pay the notice period salary.
Similarly if the employer wants to get earlier rid of him, they are to pay the same amount.
It is only in the case of termination on the base of gross misconduct / theft that the employee is terminated on immediate grounds.
Request to all the newly appointed HRs...
Please educate yourself on the policies and procedures of your company and statutory requirements of your state / city.
As an HR this is very necessary.
From India, Mumbai
377You are an HR,
You see that there is a one month notice period in the service letter.
Do we need to give any suggestions here?
It goes without saying that either party has to give one month's notice before separation.
Be it he resigning or you terminating.
You mention company don't want to continue with his employment.
Fair enough.
Do you have solid reason for same?
Perhaps you may have a solution then.
As per the rule, you are to serve the notice period.
If the employee wants an early release, he is to pay the notice period salary.
Similarly if the employer wants to get earlier rid of him, they are to pay the same amount.
It is only in the case of termination on the base of gross misconduct / theft that the employee is terminated on immediate grounds.
Request to all the newly appointed HRs...
Please educate yourself on the policies and procedures of your company and statutory requirements of your state / city.
As an HR this is very necessary.
From India, Mumbai
Hi Amod,
I would like to correct you on 1 of the points you made as follows:
It is not necessary in this case to get an extension for notice period, neither can we deduct the salary.
The employee was not absent, he was told not to come and hence the absence.
There is a difference.
As an HR we can't play double standards to our benefit. We need to be careful to be following laws to set an example for others.
I am however open to understand your view point as well on this.
From India, Mumbai
I would like to correct you on 1 of the points you made as follows:
It is not necessary in this case to get an extension for notice period, neither can we deduct the salary.
The employee was not absent, he was told not to come and hence the absence.
There is a difference.
As an HR we can't play double standards to our benefit. We need to be careful to be following laws to set an example for others.
I am however open to understand your view point as well on this.
From India, Mumbai
Dear All
The provision for one month notice is for the company to get a replacement and to repair the loss as the above said employee is leaving the organisation in case of the Empolyee submiting the resignation. It is not mandatory to pay him for a period he had not worked .
If the company is making the an Employee leave against his will the company has to pay.
Rather it is the relationship HR department is maintaining with the employees reflects in these issues. A better HR Professional should be able to manage this situation and make this feel like done for the Employee
Thank you
From India, Bangalore
The provision for one month notice is for the company to get a replacement and to repair the loss as the above said employee is leaving the organisation in case of the Empolyee submiting the resignation. It is not mandatory to pay him for a period he had not worked .
If the company is making the an Employee leave against his will the company has to pay.
Rather it is the relationship HR department is maintaining with the employees reflects in these issues. A better HR Professional should be able to manage this situation and make this feel like done for the Employee
Thank you
From India, Bangalore
Madhu T.K. I have clearly mentioned that he is asking salary for one month because company released him immediately on May month end, He himself is ready to continue for one month to serve the notice and to get his June months money, where as mentioned by rakesh he actually dose not have anything to work on in the office. This clearly shows that he is just concerned about his money, else he would have told them about the clause of separation in appointment letter while asking for Salary.
Further as Mr. Rakesh said that the appointment letter has the clause to give notice for one month, so they can clearly ask him to serve further notice to get the June months salary or can just pay him the money in lieu of notice. Before accepting the resignation like this HR should check the terms and conditions mentioned in appointment to avoid such issues.
From India, Mumbai
Further as Mr. Rakesh said that the appointment letter has the clause to give notice for one month, so they can clearly ask him to serve further notice to get the June months salary or can just pay him the money in lieu of notice. Before accepting the resignation like this HR should check the terms and conditions mentioned in appointment to avoid such issues.
From India, Mumbai
Hi Ankita,
This is not double standards. HR department also have humans, & there are cases when negotiations are needed beyond boundaries of policies.
Such incidents provides continual learning to HR policies.
With present case experience, now this HR will never ask any contracted employee to leave without serving notice period, if they do not want to pay him. But in the incident that has already happened, the 6-8 days of June which are already gone can't be left un-accountable. This will be difficult to sort out for employee, as well as organization. Hence the suggestion was to mutually agree for it to be non-paid (or paid, if the policies allow) leave. If it is paid leave, then there will be no issue, but then the leave balance of employee reduces un-necessarily (Monitory loss?). If it is unpaid leave, then in order for company to pay him for 1 month salary, the notice period would extend for these leave days.
This will provide justice for the payment company is making, as well as there will be no 'gap' in the employment record for the employee.
This should be very much in line with company ethics, & I do not see any reason not to negotiate this solution with employee.
Only, as I have already mentioned that this is only possible, if company has not yet issued relieving letter to the employee.
Now, as per Rakesh's latest post, company acknowledges the contract for one month notice period & agree to the notice period buyout option, but also, "company not want to continue that employee and don’t want to pay salary of June month". I do not think this argument is really logical. If the employee is persistent, then may have to end up paying this one month salary to the employee.
I always end up my reply with "Best of luck" in such queries, but this time my wishes are with the employee...
Best Regards,
Amod.
This is not double standards. HR department also have humans, & there are cases when negotiations are needed beyond boundaries of policies.
Such incidents provides continual learning to HR policies.
With present case experience, now this HR will never ask any contracted employee to leave without serving notice period, if they do not want to pay him. But in the incident that has already happened, the 6-8 days of June which are already gone can't be left un-accountable. This will be difficult to sort out for employee, as well as organization. Hence the suggestion was to mutually agree for it to be non-paid (or paid, if the policies allow) leave. If it is paid leave, then there will be no issue, but then the leave balance of employee reduces un-necessarily (Monitory loss?). If it is unpaid leave, then in order for company to pay him for 1 month salary, the notice period would extend for these leave days.
This will provide justice for the payment company is making, as well as there will be no 'gap' in the employment record for the employee.
This should be very much in line with company ethics, & I do not see any reason not to negotiate this solution with employee.
Only, as I have already mentioned that this is only possible, if company has not yet issued relieving letter to the employee.
Now, as per Rakesh's latest post, company acknowledges the contract for one month notice period & agree to the notice period buyout option, but also, "company not want to continue that employee and don’t want to pay salary of June month". I do not think this argument is really logical. If the employee is persistent, then may have to end up paying this one month salary to the employee.
I always end up my reply with "Best of luck" in such queries, but this time my wishes are with the employee...
Best Regards,
Amod.
Hi Ankita,
You have quoted that:
Please tell me under which law does it fit, to put a clause in a employment contract, to ask employee to pay for buyout of the "notice period", for which he is not providing his services to the organisation? or even for a company to pay such amount to employee in the same case?
You have quoted that:
Please tell me under which law does it fit, to put a clause in a employment contract, to ask employee to pay for buyout of the "notice period", for which he is not providing his services to the organisation? or even for a company to pay such amount to employee in the same case?
Point well taken Mr. Amod,
But the salary we pay in lieu of not serving the notice is actually the opportunity cost.
Usually the company takes that because there will be some hamper in the work whilst you are away and they have not placed someone to take over since you are leaving early.
This are the clauses usually put up on the appointment letter.
Many times when the employees are planning to move on, they keep their line managers in loop saying they are looking for growth opportunities.
(Saying so after speaking to many candidates. And let me tell you I am working in a consultancy speaking to many people everyday)
In such case, the employee will get early relief and may not also have to pay the amount.
But when an employee wakes up in the morning and resigns and wants to be relieved in a few days time.... what the company can do?
Surely the company can't force him to stay back especially when he is not willing to work.... but they can surely ask him to compensate for the loss they will have in their absence till they look out for some one.
I hope I have tried to solve the doubt.
Regards,
Ankita
From India, Mumbai
But the salary we pay in lieu of not serving the notice is actually the opportunity cost.
Usually the company takes that because there will be some hamper in the work whilst you are away and they have not placed someone to take over since you are leaving early.
This are the clauses usually put up on the appointment letter.
Many times when the employees are planning to move on, they keep their line managers in loop saying they are looking for growth opportunities.
(Saying so after speaking to many candidates. And let me tell you I am working in a consultancy speaking to many people everyday)
In such case, the employee will get early relief and may not also have to pay the amount.
But when an employee wakes up in the morning and resigns and wants to be relieved in a few days time.... what the company can do?
Surely the company can't force him to stay back especially when he is not willing to work.... but they can surely ask him to compensate for the loss they will have in their absence till they look out for some one.
I hope I have tried to solve the doubt.
Regards,
Ankita
From India, Mumbai
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