Dear HR,
I am working as an HR Executive. Could you please clarify my doubt below?
If an employee has been terminated by the company, does the company have the right to ask the employee to pay for the notice period amount (3 months' notice period amount) after the employee's termination?
I appreciate any kind of help.
Thanks,
From India, Bengaluru
I am working as an HR Executive. Could you please clarify my doubt below?
If an employee has been terminated by the company, does the company have the right to ask the employee to pay for the notice period amount (3 months' notice period amount) after the employee's termination?
I appreciate any kind of help.
Thanks,
From India, Bengaluru
No. They cannot ask. Instead, the company has to pay the notice period salary to employee, if the termination is instant.
From United+States, San+Francisco
From United+States, San+Francisco
Thank you for your response.
Actually, the company has sent an email to the employee to serve the notice period and is asking for a report in the office within 10 days. However, the company didn't receive any response from the employee. After 4 months, the company terminated the employee.
Based on this situation, can the company ask for the notice period amount?
Thank you.
From India, Bengaluru
Actually, the company has sent an email to the employee to serve the notice period and is asking for a report in the office within 10 days. However, the company didn't receive any response from the employee. After 4 months, the company terminated the employee.
Based on this situation, can the company ask for the notice period amount?
Thank you.
From India, Bengaluru
Dear Mr. A R Singh,
The facts of the case as of now. Please furnish relevant facts, namely:
Did the concerned employee tender his/her resignation, requesting release with immediate effect, i.e., date of application tendering resignation? Or was he/she absent from duty without information and/or proper permission?
If the employment of the concerned employee has been terminated by the employer/management for acts of misconduct, where is the question for effecting termination/discharge order from a prospective date, that too on completion of notice period as envisaged? Notice period clause applies only when the employed person seeks severance, not when management initiates disciplinary action to end the employment contract.
Kritarth Team
Bengaluru Service Centre
Home | Kritarth Consulting Private Limited
From India, Delhi
The facts of the case as of now. Please furnish relevant facts, namely:
Did the concerned employee tender his/her resignation, requesting release with immediate effect, i.e., date of application tendering resignation? Or was he/she absent from duty without information and/or proper permission?
If the employment of the concerned employee has been terminated by the employer/management for acts of misconduct, where is the question for effecting termination/discharge order from a prospective date, that too on completion of notice period as envisaged? Notice period clause applies only when the employed person seeks severance, not when management initiates disciplinary action to end the employment contract.
Kritarth Team
Bengaluru Service Centre
Home | Kritarth Consulting Private Limited
From India, Delhi
Thanks, @Kritarth Team, for your response. The employee has informed the manager through the phone about some family problems and has taken permission for 20 days. After 20 days, when the employee did not report to the office, the company contacted them and asked for a report in the office. After that, the following steps were followed by the employee and the company:
1) The employee sent an email saying he is unable to continue the job due to some family problems and is unable to serve the notice period.
2) After that, the company sent an email stating that the employee should report to the office within a specified timeframe and initiate the exit process through the company portal. If they do not want to serve the notice period, they should buyout the notice period.
3) After no response from the employee, the company terminated the employee from the job after 4 months and sent a termination letter to the employee through email.
4) The employee had only come to the office for one month.
Thanks,
From India, Bengaluru
1) The employee sent an email saying he is unable to continue the job due to some family problems and is unable to serve the notice period.
2) After that, the company sent an email stating that the employee should report to the office within a specified timeframe and initiate the exit process through the company portal. If they do not want to serve the notice period, they should buyout the notice period.
3) After no response from the employee, the company terminated the employee from the job after 4 months and sent a termination letter to the employee through email.
4) The employee had only come to the office for one month.
Thanks,
From India, Bengaluru
In this particular case, the company has grounds for demanding the notice period buyout from the employee and can actually take legal action against the employee.
Next time, please provide full information at the start instead of making vague statements that confuse the members of the forum and give you wrong suggestions.
From India, Mumbai
Next time, please provide full information at the start instead of making vague statements that confuse the members of the forum and give you wrong suggestions.
From India, Mumbai
Thanks for reply. I want to know 3 month notice period notice period is legally valid for who work for 1 month. Thanks in advance.
From India, Bengaluru
From India, Bengaluru
There is no specific law on this that explicitly states that above. However, considering employment as a contract under the Indian Contract Act, yes, the employee signed an agreement (or agreed to the terms of the contract of employment) and needs to honor them. It then does not matter whether the employee worked for a day, a month, or a year.
From an ethical point of view, the employer spent money in recruiting a person and based part of his business on the person working (having accepted the employment agreed to work there). Simply walking off, giving an excuse that is most probably not true, disrupts the business. A 3-month period meant to provide the employer time to find a replacement makes sense.
From India, Mumbai
From an ethical point of view, the employer spent money in recruiting a person and based part of his business on the person working (having accepted the employment agreed to work there). Simply walking off, giving an excuse that is most probably not true, disrupts the business. A 3-month period meant to provide the employer time to find a replacement makes sense.
From India, Mumbai
Services of an employee in any organization are normally guided by the Industrial Employment (Standing Orders) Act or by the "Staff Service Rules" of the organization. For some employees categorized as "Special Category," rules in addition to those stated in the "Staff Service Rules" of the organization are specifically outlined in the "Letter of Appointment." An Appointment Order represents a "Contract" between the employer and the employee, requiring staff to sign and return a duplicate copy of the Letter of Appointment as a token of acceptance of the terms and conditions of employment.
Letters of Appointment always contain a "Contract Termination" clause, which includes a line on the "Serving of Notice of termination of Contract" by either party (the employer or the employee). When an employee submits a notice to quit, the "notice clause" allows sufficient time for the employer to find a suitable alternative and facilitate the handover/takeover of responsibilities. Therefore, if an employer intends to terminate an employee for any reason (excluding major misconduct), they must also serve a notice to the employee (a social security measure) to allow time for finding an alternative.
In the given scenario, it appears that the employee is deemed ineffective and subsequently terminated by the employer. In this situation, the employee is entitled to receive a "notice" or "salary in lieu thereof" and not otherwise, as the employer cannot recover Notice Pay from Final Settlement Dues.
Regards,
Soumitra Sengupta
From India, Pune
Letters of Appointment always contain a "Contract Termination" clause, which includes a line on the "Serving of Notice of termination of Contract" by either party (the employer or the employee). When an employee submits a notice to quit, the "notice clause" allows sufficient time for the employer to find a suitable alternative and facilitate the handover/takeover of responsibilities. Therefore, if an employer intends to terminate an employee for any reason (excluding major misconduct), they must also serve a notice to the employee (a social security measure) to allow time for finding an alternative.
In the given scenario, it appears that the employee is deemed ineffective and subsequently terminated by the employer. In this situation, the employee is entitled to receive a "notice" or "salary in lieu thereof" and not otherwise, as the employer cannot recover Notice Pay from Final Settlement Dues.
Regards,
Soumitra Sengupta
From India, Pune
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