I have observed that many companies prefer that the employee resigns instead of the company firing the employee. Is this due to differences in the way amounts payable to the employee get calculated?
As I understand, the basic legal requirement for the employer is to pay all outstanding salary and gratuity dues when an employment ends. How does it matter if the employee resigns or the employer terminates?
regards, Uttam.
From India, Mumbai
As I understand, the basic legal requirement for the employer is to pay all outstanding salary and gratuity dues when an employment ends. How does it matter if the employee resigns or the employer terminates?
regards, Uttam.
From India, Mumbai
Dear friend, Your question is very vague. Pl specific about the situation or what ground employee resignation takes place, then only it is possible to give answer. Rds, Martin
The grounds for leavingcould be normal. Suppose the employee resigns to leave for better prospects. Alternatively the company could be downsizing or moving and so terminates the employment. How would the payments be different? I have found that even when the emloyers are terminating the employment, they prefer to receive a resignation from the employee.
Uttam.
From India, Mumbai
Uttam.
From India, Mumbai
Legally obliged, company should efficiently prove to meet the termination conditions, for example, violating the regulations, low performer. Especially for the low performer, most employees were dismissed for this reason. It's somewhat difficult to prove a low performer because performance indicators are mostly qualitative rather that quantitative. And different evaluators will have different opinions.
Basically, when firing a employee, company would prefer negotiating with employee and receiving a voluntary resignation to avoid the conflict. As a compromise, normally, company is willing to make the same compensation as firing him.
For employee, it's hard for him to stay in the company when company decides to let him go. In most circumstance, he will have to accept the conditions if he could get the legal compensation.
Basically, when firing a employee, company would prefer negotiating with employee and receiving a voluntary resignation to avoid the conflict. As a compromise, normally, company is willing to make the same compensation as firing him.
For employee, it's hard for him to stay in the company when company decides to let him go. In most circumstance, he will have to accept the conditions if he could get the legal compensation.
My question is: How does it really matter whether the employee has resigned or has been terminated if the payment to be made in both cases involves normal dues of salary, bonus, encashable leave and the eligible gratuity. I don't think that the gratuity amount is dependent on resignation or termination?
I have heard of companies in USA which have plans that involve a large payment (a kind of gratuity) upon termination which is otherwise not payable if the employee resigns on his own accord.
From India, Mumbai
I have heard of companies in USA which have plans that involve a large payment (a kind of gratuity) upon termination which is otherwise not payable if the employee resigns on his own accord.
From India, Mumbai
Hi!
I need to know whether it affects you as a person or from the point of view of the company?(In case you want to know from the employee's point of view-It is wise to leave when asked to rather then getting the sack)
In case it is from the point of view of the company-The payment made out is usually same for both cases and they are subject to the terms of contract.
Regards,
Shyamali
From India, Nasik
15I need to know whether it affects you as a person or from the point of view of the company?(In case you want to know from the employee's point of view-It is wise to leave when asked to rather then getting the sack)
In case it is from the point of view of the company-The payment made out is usually same for both cases and they are subject to the terms of contract.
Regards,
Shyamali
From India, Nasik
Hi Uttam,
1st point:- If an employee resigns then he will have to pay notice period & if the employer is willing to terminate him then the employer will have to pay notice period. (so this is regarding money)
2nd point:- To terminate someone means that you should have a solid groud then a domestic enquiry & other required formalities. (so this is about legal formalities)
3rd point:- The employer does not want to be involve in this type of legal cases bcoz it kills your money & resources too (might involve a hefty amount if the case lingers on) so what the employer generally does he just asks the employee to resign & pay them notice period.
Hope the matter would be cleared now.............
From India, Calcutta
1st point:- If an employee resigns then he will have to pay notice period & if the employer is willing to terminate him then the employer will have to pay notice period. (so this is regarding money)
2nd point:- To terminate someone means that you should have a solid groud then a domestic enquiry & other required formalities. (so this is about legal formalities)
3rd point:- The employer does not want to be involve in this type of legal cases bcoz it kills your money & resources too (might involve a hefty amount if the case lingers on) so what the employer generally does he just asks the employee to resign & pay them notice period.
Hope the matter would be cleared now.............
From India, Calcutta
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Amendment to Payment of Bonus Act 2015.jpg
Online payment of PF mandatory from 1.1.2016.pdf