Hi, Need assistance If we want recover notice period salary from employee. Is calcuated on Basic or Gross salary or Net Salary ? Regards, Vijay
Thanx Sushil, But Notice Period salary recover on what basis. IS Gross Salary / NET SALARY/ BASIC SALARY? Regards, Vijay
Dear Rekha,
It seems the employee does not know the method of formal communication. In his resignation letter, he is supposed to write either "with immediate effect' or with effect from date so and so;it seems, he has loosely said he is willing to work till the end of the notice period instead of specifying that he would like to be relieved at the end of the notice peroid. And you have caught him!
Well, it is his bad luck that your company wants to stick to the letter of the agreemnt and not the spirit of the agreement. Not paying him the notice pay, might seem legally valid but in my opinion it goes against all norms of HR. Your company is also a confused and crafty set up; instead of havng courage to terminate the services of a redundant employee, it has waited (or, maybe, prompted even) for the employee to resign and has jumped at an unwitting mistake made by the employee.
Shreyas Munshi
From India, Mumbai
1It seems the employee does not know the method of formal communication. In his resignation letter, he is supposed to write either "with immediate effect' or with effect from date so and so;it seems, he has loosely said he is willing to work till the end of the notice period instead of specifying that he would like to be relieved at the end of the notice peroid. And you have caught him!
Well, it is his bad luck that your company wants to stick to the letter of the agreemnt and not the spirit of the agreement. Not paying him the notice pay, might seem legally valid but in my opinion it goes against all norms of HR. Your company is also a confused and crafty set up; instead of havng courage to terminate the services of a redundant employee, it has waited (or, maybe, prompted even) for the employee to resign and has jumped at an unwitting mistake made by the employee.
Shreyas Munshi
From India, Mumbai
Hello Rekha
As we all know the reason for having notice e period, i.e. is to have a smooth handing over and taking over and the same time may be used to look for a suitable replacement.
As Mr Sunil Joshi has rightly said that , “The question is not whether the company should pay for the remaining notice period or not but what is logical in the situation. How would you differentiate an employee who has an offer and wants to leave after serving 10 days notice period with a person who as per the appointment agreement is willing to serve the stated 30 days notice.
If the employee leaves without serving the full notice we surely recover the shortfall in notice, but why penalise an employee who probably have negotiated with the prospective employer for a DOJ later than 30 days (pl note that by joining early s/he may increase her/his earning, assuming s/he is moving for atleast a 10 - 15 % increase).
By releasing an employee earlier than the notice period without compensating would force her/ him to be unemployed for the such period the employee wanted to serve as notice which the company doesn’t.
From another angle, in future most of the employees who resign will make sure that their DOJ with prospective employers is not beyond 10 days (knowing how the company treats an employee willing to serve full notice)”.
As per Sanjeev …….....the case of resignation...the onus is an employee to serve the complete notice period or pay in lieu of it and it is the discretion of company if they can relieve the person early.
As per Pooja …………..Notice period is either from the company's end when they terminate your services/ they pay the salary in lieu but if the notice period is due to voluntary resignation of the employee, the decision lies on the company whether they want to relieve him in 2 days/ 20/30days. The company has the right to complete the KT & relieve the employee. So I don’t think the company needs to pay the employee for relieving him earlier.
AND She suggested to complete clearance, hand over to him relieving & exp certificate & ask him to leave ASAP before he creates a scene. As u rightly said Empty Mind is a Devils workshop.”
Dear Friends
Have you all gone through the basic question put forward by Ms Rekha, I request you all to go once again.
She raised simple question i.e., One of her employee submitted his resignation and was relieved before the expiry of the notice period as he had completed his project and no new work was allocated to him. He was willing to serve the full notice period but we did relieve him immediately as there was no pending work from his end.
Now the employee is demanding notice pay in lieu of the remaining notice period as he was relived within 10 days.
Is the organisation liable to pay ??? After resignation is accepted , Can't the organisation relieve an employee in advance or late based on the nature of job & responsibilities ?
Only question left is Whether Organisation is bound to pay for the Notice Period still in hand of the employee if organisation relieve him/her at the earliest date.
Laws say appointment letter is a contract between the employer and employee. When an employee resigns voluntarily he is not entitled to notice pay from the Company. The Employer is only liable when it terminates the Contract, but here the termination is brought about by the other party hence you cannot claim compensation if you terminate the Contract. So, the onus of paying compensation lies with the party which terminates the Contract and not the other way round.
Ms Rekha Reading:
Thus, in any case there is no liability of an employer to pay for the remaining period once organisation has already relieved an employee after completion of his/her work, when employee has already resigned from his employment.
Regards
Arun k Mishra
From India, Bahadurgarh
As we all know the reason for having notice e period, i.e. is to have a smooth handing over and taking over and the same time may be used to look for a suitable replacement.
As Mr Sunil Joshi has rightly said that , “The question is not whether the company should pay for the remaining notice period or not but what is logical in the situation. How would you differentiate an employee who has an offer and wants to leave after serving 10 days notice period with a person who as per the appointment agreement is willing to serve the stated 30 days notice.
If the employee leaves without serving the full notice we surely recover the shortfall in notice, but why penalise an employee who probably have negotiated with the prospective employer for a DOJ later than 30 days (pl note that by joining early s/he may increase her/his earning, assuming s/he is moving for atleast a 10 - 15 % increase).
By releasing an employee earlier than the notice period without compensating would force her/ him to be unemployed for the such period the employee wanted to serve as notice which the company doesn’t.
From another angle, in future most of the employees who resign will make sure that their DOJ with prospective employers is not beyond 10 days (knowing how the company treats an employee willing to serve full notice)”.
As per Sanjeev …….....the case of resignation...the onus is an employee to serve the complete notice period or pay in lieu of it and it is the discretion of company if they can relieve the person early.
As per Pooja …………..Notice period is either from the company's end when they terminate your services/ they pay the salary in lieu but if the notice period is due to voluntary resignation of the employee, the decision lies on the company whether they want to relieve him in 2 days/ 20/30days. The company has the right to complete the KT & relieve the employee. So I don’t think the company needs to pay the employee for relieving him earlier.
AND She suggested to complete clearance, hand over to him relieving & exp certificate & ask him to leave ASAP before he creates a scene. As u rightly said Empty Mind is a Devils workshop.”
Dear Friends
Have you all gone through the basic question put forward by Ms Rekha, I request you all to go once again.
She raised simple question i.e., One of her employee submitted his resignation and was relieved before the expiry of the notice period as he had completed his project and no new work was allocated to him. He was willing to serve the full notice period but we did relieve him immediately as there was no pending work from his end.
Now the employee is demanding notice pay in lieu of the remaining notice period as he was relived within 10 days.
Is the organisation liable to pay ??? After resignation is accepted , Can't the organisation relieve an employee in advance or late based on the nature of job & responsibilities ?
Only question left is Whether Organisation is bound to pay for the Notice Period still in hand of the employee if organisation relieve him/her at the earliest date.
Laws say appointment letter is a contract between the employer and employee. When an employee resigns voluntarily he is not entitled to notice pay from the Company. The Employer is only liable when it terminates the Contract, but here the termination is brought about by the other party hence you cannot claim compensation if you terminate the Contract. So, the onus of paying compensation lies with the party which terminates the Contract and not the other way round.
Ms Rekha Reading:
Thus, in any case there is no liability of an employer to pay for the remaining period once organisation has already relieved an employee after completion of his/her work, when employee has already resigned from his employment.
Regards
Arun k Mishra
From India, Bahadurgarh
I agree with Sunil.
An employee who is willing to serve the notice period, however the employer does not require his service anymore. It is only right to compensate the employee for the notice period which he/she supposed to serve. No one person would feel good when the service is no longer required of him/her.
For instance, I supposed to work till the end of February. However, the employer would like to relieve me in January for whatever reason. The employer shall compensate my February salary for the reason that I would have earned that salary if I weren't being asked to leave early.
Again, this has been the law in Malaysia if an employee were asked to leave early by the employer.
Thank you.
From Malaysia, Kuala Lumpur
An employee who is willing to serve the notice period, however the employer does not require his service anymore. It is only right to compensate the employee for the notice period which he/she supposed to serve. No one person would feel good when the service is no longer required of him/her.
For instance, I supposed to work till the end of February. However, the employer would like to relieve me in January for whatever reason. The employer shall compensate my February salary for the reason that I would have earned that salary if I weren't being asked to leave early.
Again, this has been the law in Malaysia if an employee were asked to leave early by the employer.
Thank you.
From Malaysia, Kuala Lumpur
I don’t think so that company is liable to pay, coz only if company had asked the employee to leave. wishes EAFIL
From India, Delhi
From India, Delhi
Dear Mr. Shreyas Munshi,
I appreciate your time in going thru my query and providing a feed back.
But "Pls do not make unwarranted comments about my organisation, I have only asked for the opinion of the HR fraternity on a particular situation, You have no right to assume/judge about the organisation and make offending remarks about any member or organisation"
We are here to help each other , in seeking and providing wider perspective on the topic .
Thank You,
Rekha
From India, Bangalore
I appreciate your time in going thru my query and providing a feed back.
But "Pls do not make unwarranted comments about my organisation, I have only asked for the opinion of the HR fraternity on a particular situation, You have no right to assume/judge about the organisation and make offending remarks about any member or organisation"
We are here to help each other , in seeking and providing wider perspective on the topic .
Thank You,
Rekha
From India, Bangalore
Dear Mr. Shreyas Munshi,
I appreciate your time in going thru my query and providing a feed back.
But "Pls do not make unwarranted comments about my organisation, I have only asked for the opinion of the HR fraternity on a particular situation, You have no right to assume/judge about the organisation and make offending remarks about any member or organisation"
We are here to help each other , in seeking and providing wider perspective on the topic .
Thank You,
Rekha
From India, Bangalore
I appreciate your time in going thru my query and providing a feed back.
But "Pls do not make unwarranted comments about my organisation, I have only asked for the opinion of the HR fraternity on a particular situation, You have no right to assume/judge about the organisation and make offending remarks about any member or organisation"
We are here to help each other , in seeking and providing wider perspective on the topic .
Thank You,
Rekha
From India, Bangalore
Dear All, Thank you for your valuable inputs. Mr. Arun Mishra :Thank you for your analysis of the opinion of CiteHR Special thanx to Sanjeev, Swastik, Ashley, Sunil & Pooja Regards, Rekha
From India, Bangalore
From India, Bangalore
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