Problem - I have one employee who has submitted the resignation without notice. Unfortunately, his offer letter doesn’t mention him serving a notice period. This was my error.
However, the same was conveyed verbally to them at time of appointment.
Question – Am I obliged to pay him his entire compensation or can I have him serve notice/ take 1 month salary compensation?
Problem - Also, there is a company policy of a 45-day full and final settlement window which is not documented or communicated to the employees. Only after they resign do I tell them about this window.
Question - Am I sufficiently empowered to do so or do I have to convey it to my employees in writing?
From India, Mumbai
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However, the same was conveyed verbally to them at time of appointment.
Question – Am I obliged to pay him his entire compensation or can I have him serve notice/ take 1 month salary compensation?
Problem - Also, there is a company policy of a 45-day full and final settlement window which is not documented or communicated to the employees. Only after they resign do I tell them about this window.
Question - Am I sufficiently empowered to do so or do I have to convey it to my employees in writing?
From India, Mumbai
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"However, the same was conveyed verbally to them at the time of appointment.
Verbal information has no real legal value if it gets contested or denied. Make an exception in this case and get the employee cleared. Do inform your senior management about the lapse and clear the matter. FNF has to be done so no point delaying an inevitable commitment."
From India, Pune
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3180Verbal information has no real legal value if it gets contested or denied. Make an exception in this case and get the employee cleared. Do inform your senior management about the lapse and clear the matter. FNF has to be done so no point delaying an inevitable commitment."
From India, Pune
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If the Standing Order is not in place and accessible to the employees, and the clause is not mentioned in the letter, then you will have to clear the employee dues with no Notice Period. Having a policy that employees are unaware of or do not have access to will not help in enforcing it. The Standing Orders also need to be communicated and available to employees for easy reference.
Regards,
Ashutosh Thakre
From India, Mumbai
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Regards,
Ashutosh Thakre
From India, Mumbai
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Dear Paresh,
Informal or uncommunicated information pertaining to an employer's policies or an employee's service has no relevance in the eyes of the law. So, neither your verbal information about the notice period, nor uncommunicated information about the settlement window proposed to be communicated to the employee after his resignation has any relevance now. However, you can follow and insist the employee on following the requirement of the notice period, as prescribed in your state's establishment and commercial organizations Act.
For the future, you may include the necessary clauses in the appointment orders of the newly appointed employees. The policy document of the company should never be incomplete or defective.
From India, Delhi
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Informal or uncommunicated information pertaining to an employer's policies or an employee's service has no relevance in the eyes of the law. So, neither your verbal information about the notice period, nor uncommunicated information about the settlement window proposed to be communicated to the employee after his resignation has any relevance now. However, you can follow and insist the employee on following the requirement of the notice period, as prescribed in your state's establishment and commercial organizations Act.
For the future, you may include the necessary clauses in the appointment orders of the newly appointed employees. The policy document of the company should never be incomplete or defective.
From India, Delhi
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(Fact Checked)-The user's reply contains accurate information. It correctly emphasizes the importance of having policies documented and communicated clearly to employees. It also highlights the relevance of following the notice period as per state laws. The suggestion to include necessary clauses in appointment orders aligns with best practices. (1 Acknowledge point)
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Please find the remarks as per your query in BOLD
Legally the salary has to be paid/cleared within 7 days of the month completed/last working day. The FnF apart from salary has to be paid within 30 days from the last working day.
From India, Ahmadabad
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Legally the salary has to be paid/cleared within 7 days of the month completed/last working day. The FnF apart from salary has to be paid within 30 days from the last working day.
From India, Ahmadabad
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(Fact Checked)-The user reply is correct. Thank you for the detailed and accurate response. (1 Acknowledge point)
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Dear Paresh,
Nathrao has suggested the right thing. Just do a "JDI/Mini-kaizen" and correct similar goof-ups, if any, so that you can work peacefully. Such kind of issues creates a lot of confusion and can become a pain for HR if not tackled properly. So, clear it off as an "exception" after taking your management's approval.
The question of standing orders comes into play only if your setup is a factory and where you do not have any other formalized agreement signed off with the associates.
Cheers,
A.B.
From India, Mumbai
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Nathrao has suggested the right thing. Just do a "JDI/Mini-kaizen" and correct similar goof-ups, if any, so that you can work peacefully. Such kind of issues creates a lot of confusion and can become a pain for HR if not tackled properly. So, clear it off as an "exception" after taking your management's approval.
The question of standing orders comes into play only if your setup is a factory and where you do not have any other formalized agreement signed off with the associates.
Cheers,
A.B.
From India, Mumbai
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Full n final settlement.doc
CiteHR.AI
(Fact Checked)-The user reply is correct. It aligns with labor laws that state policies must be accessible and communicated to employees for enforcement. (1 Acknowledge point)