Dear All,
I have a query please help me.
An employee had submitted his resignation. In the resignation he has requested to be released at the earliest. The Company accepted his resignation and released him within 15 days. There is a notice period of one month in the Standing Orders.
Now, while settling his final payment the Accounts Department has deducted 15 days salary because he has not served the one month's notice period as per the Certified Standing Orders.
My question is that can a company deduct notice pay if the Company accepts the resignation and release the employee before hand voluntarily?
Regards,
SC
From India, Thane
45I have a query please help me.
An employee had submitted his resignation. In the resignation he has requested to be released at the earliest. The Company accepted his resignation and released him within 15 days. There is a notice period of one month in the Standing Orders.
Now, while settling his final payment the Accounts Department has deducted 15 days salary because he has not served the one month's notice period as per the Certified Standing Orders.
My question is that can a company deduct notice pay if the Company accepts the resignation and release the employee before hand voluntarily?
Regards,
SC
From India, Thane
HELLO Sc
procedure in the government set up is that there is a procedure for resigning before supperannuation.
As per the procedure, the resignation can be accepted and the company can insist for the time period or deduct the salary for the notice period.
Perhaps, the notice period can also be waived and salary need not be deducted and this power is discretionary and lying with the Head.
hope my reply meets your target.
wishes always
Senthil raj
From Costa Rica, San José
procedure in the government set up is that there is a procedure for resigning before supperannuation.
As per the procedure, the resignation can be accepted and the company can insist for the time period or deduct the salary for the notice period.
Perhaps, the notice period can also be waived and salary need not be deducted and this power is discretionary and lying with the Head.
hope my reply meets your target.
wishes always
Senthil raj
From Costa Rica, San José
Hi,
In the instant case, the employee has aksed for an early release. This can be taken to mean that he is willing to compensate for the unexpired period of the notice (i.e. from the date of release to the day when the notice, if given, would have expired) and that he is willing to abide by the decision of the company in this matter. He has NOT asked for a waiver sormally or explicitly. The company did its best and relieved him in 15 days. This act of the company may or may not be taken as the waiver of the remainder of the notice period and that would be dicided by the company policy. Frankly it could be interpreted either way. In the absence of the company specifically waiving the remainder of the notice period, it would reasonable to presume that it has not! And that's what the Accounts Dept seems to have interpreted.
If ti was the intention of the company to not recover the pay for the remainder of the notice period, it (HR) should have specifically instructed the Accounts Dept accordingly.
This is as far as the situation concerned. But generally speaking the employer should and generally does specifically reserve the right to waive the notice period and accotding to the exigencies of the situation.
I feel that the Accounts Dept have acted in the best possible way by strictly interpreting the rules as they existed at the given time.
Regards
samvedan
August 30, 2006
From India, Pune
In the instant case, the employee has aksed for an early release. This can be taken to mean that he is willing to compensate for the unexpired period of the notice (i.e. from the date of release to the day when the notice, if given, would have expired) and that he is willing to abide by the decision of the company in this matter. He has NOT asked for a waiver sormally or explicitly. The company did its best and relieved him in 15 days. This act of the company may or may not be taken as the waiver of the remainder of the notice period and that would be dicided by the company policy. Frankly it could be interpreted either way. In the absence of the company specifically waiving the remainder of the notice period, it would reasonable to presume that it has not! And that's what the Accounts Dept seems to have interpreted.
If ti was the intention of the company to not recover the pay for the remainder of the notice period, it (HR) should have specifically instructed the Accounts Dept accordingly.
This is as far as the situation concerned. But generally speaking the employer should and generally does specifically reserve the right to waive the notice period and accotding to the exigencies of the situation.
I feel that the Accounts Dept have acted in the best possible way by strictly interpreting the rules as they existed at the given time.
Regards
samvedan
August 30, 2006
From India, Pune
Hi Swastik,
If an employee leaves without serving the notice period in mutual consultation with the Management, then the 15 days salary can be deducted or not deducted is the sole descretion of the company.
I don't think of any laws which says, if the Management is agree to relieve the employee as per his request, to not deduct any amount.
But if you deduct the salary for fifteen days, and all the employees in future will serve the complete notice period, which can be an advantage or disadvantage.
Cheers
Archna
From India, Delhi
If an employee leaves without serving the notice period in mutual consultation with the Management, then the 15 days salary can be deducted or not deducted is the sole descretion of the company.
I don't think of any laws which says, if the Management is agree to relieve the employee as per his request, to not deduct any amount.
But if you deduct the salary for fifteen days, and all the employees in future will serve the complete notice period, which can be an advantage or disadvantage.
Cheers
Archna
From India, Delhi
Dear All,
Thank you for the response.
What I would like to stress is that the employee didnot ask for a specified date. He has just mentioned at the earliest, so the Company had the option to release him after serving his notice period.
The concept of notice pay is when the employee leaves the organisation and join another organisation, but when the company releases an employee early, the employee can also claim notice pay. It is the Company who is releasing. When the Company has released the employee itself, where does the question of notice pay come into play.
Regards,
SC
From India, Thane
Thank you for the response.
What I would like to stress is that the employee didnot ask for a specified date. He has just mentioned at the earliest, so the Company had the option to release him after serving his notice period.
The concept of notice pay is when the employee leaves the organisation and join another organisation, but when the company releases an employee early, the employee can also claim notice pay. It is the Company who is releasing. When the Company has released the employee itself, where does the question of notice pay come into play.
Regards,
SC
From India, Thane
Dear Swastik,
It may be true that the employee, who resigned, did not want to be releived early with deduction of salary in lieu of unserved notice period.
But, the fact that he has in writing asked for releiving 'at the earliest', the company has used its discretion, relieved him early and deducted the salary for the remaining part of the notice period, which strictly speaking is correct from legal or system point of view. The employee cannot find fault with the company for doing this. He should have clearly written in his resignation that he might be releived as per the terms of the employment contract and that he would be serving during the enire period of notice. Many employees write their resignation letters asking to be 'releived at the earliest' without knowing the salary implications of such writing.
But, the company, if it has some values, should have asked the employee whether he wanted early relief at the cost of salary deduction and then decided the date of relief. However, when the company does not do so, one can only curse but not blame.
Govardhan
From India, Madras
It may be true that the employee, who resigned, did not want to be releived early with deduction of salary in lieu of unserved notice period.
But, the fact that he has in writing asked for releiving 'at the earliest', the company has used its discretion, relieved him early and deducted the salary for the remaining part of the notice period, which strictly speaking is correct from legal or system point of view. The employee cannot find fault with the company for doing this. He should have clearly written in his resignation that he might be releived as per the terms of the employment contract and that he would be serving during the enire period of notice. Many employees write their resignation letters asking to be 'releived at the earliest' without knowing the salary implications of such writing.
But, the company, if it has some values, should have asked the employee whether he wanted early relief at the cost of salary deduction and then decided the date of relief. However, when the company does not do so, one can only curse but not blame.
Govardhan
From India, Madras
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