Dear Seniors, I got an issue with one of our employees. She has given resignation due to her own issues and informed that she will serve the notice period. but, as she has given resignation on her own, we relived her from duty today itself. Now she is asking to pay a 1-month salary for the notice period. Please suggest to me what we can do in this case.
From India, Kakinada
3From India, Kakinada
Hi,
The employee is willing to serve the notice but you have asked her to go so it is your obligation to pay her. Please check the resignation clause of appointment letter of your company and act accordingly.
From India, Mumbai
The employee is willing to serve the notice but you have asked her to go so it is your obligation to pay her. Please check the resignation clause of appointment letter of your company and act accordingly.
From India, Mumbai
She has an issue if she stated in her resignation that she will resign withe effect from a future date which may be one month away B.Saikumar
From India, Mumbai
From India, Mumbai
Normally the clause reads like this
" Your services may be terminated by giving one month's notice or one month's pay in lieu of notice. You may resign from the services by giving one month's notice or one month's pay in lieu of notice"
PURPOSE:
If the management terminates suddenly, the employee will face hardship and to compensate this hardship to certain extent, 30 days notice or 30 days pay is given.
Similarly, whn an employee resigns, the Management will face the hardship of not having a person for that job and also need to spend money to manage the same job by incurring OT etc.To compensate the manegement, 30 days notice is prescribed and to pursuade employees to be sround for 30 days, notice pay is also included
Logically, bot parties can say that they do not want the compensation.
PRESENT CASE
The employee opts to resign and she gives a letter saying that she would like to be relieved on a specific date.Her intention is to leave the company and there is no hardship created to her by the Company. It is for the management to take a decision to relieve her either on the same day or on any day during the notice period.. We need to understand the purpose for such clauses and apply the logic.
Some may not agree with my argument and there had not been any case law either on this subject( To my knowledge) But I followed this with this logic for 35 years and wherever I had worked, we followed this logic.
T Sivasankaran
From India, Chennai
" Your services may be terminated by giving one month's notice or one month's pay in lieu of notice. You may resign from the services by giving one month's notice or one month's pay in lieu of notice"
PURPOSE:
If the management terminates suddenly, the employee will face hardship and to compensate this hardship to certain extent, 30 days notice or 30 days pay is given.
Similarly, whn an employee resigns, the Management will face the hardship of not having a person for that job and also need to spend money to manage the same job by incurring OT etc.To compensate the manegement, 30 days notice is prescribed and to pursuade employees to be sround for 30 days, notice pay is also included
Logically, bot parties can say that they do not want the compensation.
PRESENT CASE
The employee opts to resign and she gives a letter saying that she would like to be relieved on a specific date.Her intention is to leave the company and there is no hardship created to her by the Company. It is for the management to take a decision to relieve her either on the same day or on any day during the notice period.. We need to understand the purpose for such clauses and apply the logic.
Some may not agree with my argument and there had not been any case law either on this subject( To my knowledge) But I followed this with this logic for 35 years and wherever I had worked, we followed this logic.
T Sivasankaran
From India, Chennai
You need to see the relevant clauses in appointment letter, standing orders, hr manual (assuming given to emoloyees) and terms of employment if any. Some companies have a clause saying management has a right to accept resignation with or without notice, at their choice. If you have a clause to that effect, then you can relieve her and not pay
In any other case, younhave to pay notice period salary even if you do not want her in the office. If you wish to take a humane view and if you consider your reputation in job market (and also you may need to interact with the same person in another company on professional basis) then you must pay for the notice period. She may face financial hardships If she loses 1 months salary. It's not a good idea to have someone leave with a bad idea of your company when it could be avoided.
Likewise, the above arguments do not apply if she was asked to leave for fraud, shoddy work or any matter of dispute that makes it impossible for her to workin the office.
There is a practice of gardening leave in western economies that apply to senior employees. It's a period for which they get paid, can't work for anyone else or join next job, but are not wanted in office (confidentiality issues). At the same time available for anything the company might need. Unfortunately few companies follow that in india
From India, Mumbai
In any other case, younhave to pay notice period salary even if you do not want her in the office. If you wish to take a humane view and if you consider your reputation in job market (and also you may need to interact with the same person in another company on professional basis) then you must pay for the notice period. She may face financial hardships If she loses 1 months salary. It's not a good idea to have someone leave with a bad idea of your company when it could be avoided.
Likewise, the above arguments do not apply if she was asked to leave for fraud, shoddy work or any matter of dispute that makes it impossible for her to workin the office.
There is a practice of gardening leave in western economies that apply to senior employees. It's a period for which they get paid, can't work for anyone else or join next job, but are not wanted in office (confidentiality issues). At the same time available for anything the company might need. Unfortunately few companies follow that in india
From India, Mumbai
Hi, in my opinion you have to consider the clause of appointment letter only. regards, Pani Ram Arya
From India, Gurgaon
From India, Gurgaon
in this case the employee has resigned on her own and not terminated by the employer. Therefore it is the discretion of the employer to either make her work the notice period or releive her immdediately. the employee can not claim notice pay in lieu of the notice period. if the empoyer had terminated her, she would have been eligible for notice pay...
From India, Bangalore
From India, Bangalore
Ms.Rupawati
Since the employee has expressed her intention to resign from 21 July 2012 but you have relieved her immediately, it is advisable, both on technical grounds as well as on grounds of administrative prudence, to pay her one month salary and end the matter on win-win situation.
B.Saikumar
mumbai
From India, Mumbai
Since the employee has expressed her intention to resign from 21 July 2012 but you have relieved her immediately, it is advisable, both on technical grounds as well as on grounds of administrative prudence, to pay her one month salary and end the matter on win-win situation.
B.Saikumar
mumbai
From India, Mumbai
Dear Seniors,
In our appointment letter we have mentioned that " your service may be terminated at any time by one month's notice in writing by either side". So, now she is showing that point and asking us to pay the 1 month salary for notice period otherwise she will proceed legally.
Is that point which we mentioned in the appointment letter is legally strong on Employee side? Please suggest me.
From India, Kakinada
In our appointment letter we have mentioned that " your service may be terminated at any time by one month's notice in writing by either side". So, now she is showing that point and asking us to pay the 1 month salary for notice period otherwise she will proceed legally.
Is that point which we mentioned in the appointment letter is legally strong on Employee side? Please suggest me.
From India, Kakinada
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