Hi Friends,
I am confuse and struck in the point of termination. One of our two month’s employee is terminated because he refuse to work on site. He is quite ok.
Problem:
For other probation period employees we are deducing one months notice period if he / she is not giving any prior information
I would like to know that shall I prepare his “Full & Final Settlement” if yes then shall I deduct his one month salary or not. If we will not deduct any salary then that will become lesion for other to quit without notice because lot many employees don’t want any experience letter form company and quit without information
Please guide what to do??
An early action and your valuable comments on this will be appreciated.
Thanks and Regards
Pankaj
From India, New delhi
11I am confuse and struck in the point of termination. One of our two month’s employee is terminated because he refuse to work on site. He is quite ok.
Problem:
For other probation period employees we are deducing one months notice period if he / she is not giving any prior information
I would like to know that shall I prepare his “Full & Final Settlement” if yes then shall I deduct his one month salary or not. If we will not deduct any salary then that will become lesion for other to quit without notice because lot many employees don’t want any experience letter form company and quit without information
Please guide what to do??
An early action and your valuable comments on this will be appreciated.
Thanks and Regards
Pankaj
From India, New delhi
Dear chandan,
The problem regarding cutting of salary for one month will not help as generally the amount is compensated by the next employer yes you could try exit interview method that should bring a better prospect to handling the sitaution and the answer will be right before your own eyes:-P
From India, Nagpur
The problem regarding cutting of salary for one month will not help as generally the amount is compensated by the next employer yes you could try exit interview method that should bring a better prospect to handling the sitaution and the answer will be right before your own eyes:-P
From India, Nagpur
Hey Chandan
We have to nywaz prepare F&FS becoz we being HR have to be clear in the working terms, For example: Even if ny employee leaves the org without informing we do clear F&FS and separate the employee from the system, so that the employee may not create a problem in future.
Now the next point is this that shud u deduct notice perio, yes u shd definitely deduct if this is the code of conduct that you follow for all.
Plzz corrcet me if i m wrong!:?:
From India, Mumbai
We have to nywaz prepare F&FS becoz we being HR have to be clear in the working terms, For example: Even if ny employee leaves the org without informing we do clear F&FS and separate the employee from the system, so that the employee may not create a problem in future.
Now the next point is this that shud u deduct notice perio, yes u shd definitely deduct if this is the code of conduct that you follow for all.
Plzz corrcet me if i m wrong!:?:
From India, Mumbai
Whether or not you issue relieving order to an employee who leaves your company without notice is your company's problem. If the standing orders or the appointment order say so you can demand notice pay. But you are not suppose to deduct the notice pay from the salary due to an employee. This is because, deduction of any amount not mentioned in section 7 of the Payment of Wages Act, 1936 will be viewed as unauthorised deduction. If the employee ( though he has resigned, he is an employee as per the definition of ID Act!) sues as per section 15 of the Payment of Wages Act, for the recovery of amount due to him by way of wages, the employer will be bound to pay it. The employer cannot say that he has deducted notice pay. Demanding notice pay or paying it is a different matter. That should be settled out separately. Therefore, it is advisable not to deduct it from salary but to get the amounts realised by any other means including withholding of relieving order. emember not to withhold PF forms also. The PF forms can be sent by the resigned employee even without employer's signature.
Regards,
Madhu.T.K
From India, Kannur
Regards,
Madhu.T.K
From India, Kannur
Dear Pankaj,
I think Full and final settlement should be done for everyone. But in case of termination of employee by the employer without giving any prior notice to employee than the employer has to waive off the required notice period from the employee side as he/she was aked to leave with immediate effect.
Thanks & Regards,
Hari Naudiyal
From India, Jaipur
I think Full and final settlement should be done for everyone. But in case of termination of employee by the employer without giving any prior notice to employee than the employer has to waive off the required notice period from the employee side as he/she was aked to leave with immediate effect.
Thanks & Regards,
Hari Naudiyal
From India, Jaipur
Dear Pankaj,
As you are terminating the employee, notice period is not applicable to him. Further i would like to tell you that if the condition of notice period is applicale to probationers in your organisation and the same has already been issuedto the employees vide appointment and has already been accepted by the employee, only then you have the right to deduct notice pay while preparing Full & Final Settlement. Further if the organisation is terminating the employee, in that case notice pay is due to be paid by the employer to the said employee.
Although in the industry, probationers are being allowed to leave at any time during probation period without citing any reasons for leaving.
Hence, For yur future ease, I would advise you to draft a policy in this regard keeping the interest of both the partiesd(Employer and employee) and circulate the same to all. otherwise it would be termed as violation of employee rights and would make yu end in legal tangle.
hope you will find it useful to your needs.
regards
Amit Anand Gera
From India, New Delhi
As you are terminating the employee, notice period is not applicable to him. Further i would like to tell you that if the condition of notice period is applicale to probationers in your organisation and the same has already been issuedto the employees vide appointment and has already been accepted by the employee, only then you have the right to deduct notice pay while preparing Full & Final Settlement. Further if the organisation is terminating the employee, in that case notice pay is due to be paid by the employer to the said employee.
Although in the industry, probationers are being allowed to leave at any time during probation period without citing any reasons for leaving.
Hence, For yur future ease, I would advise you to draft a policy in this regard keeping the interest of both the partiesd(Employer and employee) and circulate the same to all. otherwise it would be termed as violation of employee rights and would make yu end in legal tangle.
hope you will find it useful to your needs.
regards
Amit Anand Gera
From India, New Delhi
The quotes of Mr. Madhu and Hari are correct.
In case of immediate termination of an employee from the services, there is no question of deduction of amount from his/her dues on account of notice period since he/ she is not leaving from the organization at his/her own accord. However, the employer will be bound to pay the amount of notice period to the confirmed employee , incase of immediate termination from the services.
Regards,
Sivadasan
From India, Udaipur
In case of immediate termination of an employee from the services, there is no question of deduction of amount from his/her dues on account of notice period since he/ she is not leaving from the organization at his/her own accord. However, the employer will be bound to pay the amount of notice period to the confirmed employee , incase of immediate termination from the services.
Regards,
Sivadasan
From India, Udaipur
Dear Pankaj,
I read all comments,
without any hesitation I would recommend a comment from Mr.Madhu TK is perfect reply and legal support to argue and defendaable.
Rest are general without much legal support or will help your cause.
I acknowledge the depth of knowledge of Mr.Madhu TK and this reply verymuch educate to all those who are newly graduated or did not have much legal exposure in interpretation and application of legal knowledge as far as labour laws are concern.
Regards
Badlu
From Saudi Arabia
I read all comments,
without any hesitation I would recommend a comment from Mr.Madhu TK is perfect reply and legal support to argue and defendaable.
Rest are general without much legal support or will help your cause.
I acknowledge the depth of knowledge of Mr.Madhu TK and this reply verymuch educate to all those who are newly graduated or did not have much legal exposure in interpretation and application of legal knowledge as far as labour laws are concern.
Regards
Badlu
From Saudi Arabia
Dear friend
I do not understand as to where from you get the idea of deducting notice period whrn you terminate an employee. If I am right, your question was whether you can deduct notice period when you terminate an employee. Separation takes place due to termination or resignation. In case of resignation,you need to look at the terms and conditions/standing orders for recovering notice pay. similarly,in case of termination you need to refer to the terms/standing orders for paying the notice pay....here the Compan will pay the Notice pay. If that be the case. where is the question of deducting Notice pay from the terminated employee?
Siva
From India, Chennai
I do not understand as to where from you get the idea of deducting notice period whrn you terminate an employee. If I am right, your question was whether you can deduct notice period when you terminate an employee. Separation takes place due to termination or resignation. In case of resignation,you need to look at the terms and conditions/standing orders for recovering notice pay. similarly,in case of termination you need to refer to the terms/standing orders for paying the notice pay....here the Compan will pay the Notice pay. If that be the case. where is the question of deducting Notice pay from the terminated employee?
Siva
From India, Chennai
Dear friends
This reply is response to Mr Madhu's posting.
Payment of Wages Act guides disbursement of wages payable on a monthly basis.It does not cover other payments like medical,leave encashment,LTA etc.When we make full and final settlement, the same shall include other payments too including graduity. It is absolutely legal to recover Notice Pay from these amounts when ever employee resigns without giving notice pay.
Siva
From India, Chennai
This reply is response to Mr Madhu's posting.
Payment of Wages Act guides disbursement of wages payable on a monthly basis.It does not cover other payments like medical,leave encashment,LTA etc.When we make full and final settlement, the same shall include other payments too including graduity. It is absolutely legal to recover Notice Pay from these amounts when ever employee resigns without giving notice pay.
Siva
From India, Chennai
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Termination-emp loyment_563.pdf
Termination letter.doc