Dear All, I want to confirm if a company terminates an employee in Probation period , is the company liable to pay 30 days salary if they dont want employee to serve notice period? Vaishali
From India, Bengaluru
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1From India, Bengaluru
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Dear Vaishali, Yes, company is liable to pay if it is mentioned or included in the appointment contract. So please check and follow the same.
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if we mention in probation period if terminated no salary will be given for 30 days is that in line with HR law? Vaishali
From India, Bengaluru
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From India, Bengaluru
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Hi,
If you mention a clause for non-payment in the case of termination of a contract, it will be effective from both sides. If an employee breaks the contract, they are also not liable to pay any amount as a penalty towards the notice period.
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If you mention a clause for non-payment in the case of termination of a contract, it will be effective from both sides. If an employee breaks the contract, they are also not liable to pay any amount as a penalty towards the notice period.
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Whether you have to pay 30 days' notice pay or not in the event of you terminating an employee's service depends upon the terms of the letter of appointment. So please check it. However, if the clause stipulates that both the employer in case of termination and the employee in case of resignation need not give notice period, then you are not required to pay any notice pay. Please check the language of the clause in the letter of appointment.
B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai
From India, Mumbai
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B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai
From India, Mumbai
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Well, what we do is always pay employees for 30 days if we terminate them, whether in probation or permanently. However, I want to check if it is compulsory to pay an employee 30 days' salary if we terminate them during the probation period. Based on this, the HR department can revise the appointment letter for all future recruitments.
Vaishali
From India, Bengaluru
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Vaishali
From India, Bengaluru
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Then you can say with regard to termination during the probation period as follows:
"However, the employer can terminate the service of an employee during probation without notice, and the employee can resign from the service without notice during probation."
Saikumar
From India, Mumbai
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"However, the employer can terminate the service of an employee during probation without notice, and the employee can resign from the service without notice during probation."
Saikumar
From India, Mumbai
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ok so that means i have to give a liberty to employee in probation to leave wo serving notice period which i didnt wanted but i want to do things which doesnt go againt Hr norms?
From India, Bengaluru
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From India, Bengaluru
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Employment too is a contract and is subject to the provisions of the Contract Act 1872. So, a contract is binding on the parties thereto if the terms are accepted by them without any coercion. So, the question is whether an employment contract that stipulates a clause more favorable to the employer is enforceable? I do not envisage any problem in this if the said clause is accepted by the employee of his own free will.
Then, your statement that though you want a favorable clause on termination but you don't want to do anything that is against HR norms made me stretch the discussion beyond the sphere of the contract and examine whether there is any employment law governing the same issue and, if so, whether it impacts such a clause.
Normally, the Shops and Establishments Act of the States contain a clause on termination which requires an employer to give notice of a certain time (usually 30 days) to an employee in case of terminating his services. It is prudent to keep the termination clauses in tune with that in the Shops and Establishments Act to avoid any conflict between both. So please check the Shops Act of your State if your establishment is covered by the said Act.
B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai
From India, Mumbai
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Then, your statement that though you want a favorable clause on termination but you don't want to do anything that is against HR norms made me stretch the discussion beyond the sphere of the contract and examine whether there is any employment law governing the same issue and, if so, whether it impacts such a clause.
Normally, the Shops and Establishments Act of the States contain a clause on termination which requires an employer to give notice of a certain time (usually 30 days) to an employee in case of terminating his services. It is prudent to keep the termination clauses in tune with that in the Shops and Establishments Act to avoid any conflict between both. So please check the Shops Act of your State if your establishment is covered by the said Act.
B. Saikumar
HR & Labour Relations Adviser
Navi Mumbai
From India, Mumbai
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Dear Friend,
We need to understand what a probationer is in general. When a person is taken on for employment but put on an observation period, it can be considered a trial for a certain period to observe his/her performance in that job or position. Thereafter, if his/her performance is found satisfactory, he/she is confirmed as an employee of the organization.
In general, the probation period can be considered a contract for the specified time mentioned in the appointment letter. The confirmation depends on his/her performance during the period, or otherwise, it is terminated upon completion of the period. Non-confirmation for the job cannot be treated as termination. It now depends on the text mentioned in the appointment letter of the probationer. Are the probationers informed regarding their performance during the period or counseling sessions? It is essential to raise an alarm as most of the time there is misuse of probationers.
From India, Mumbai
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We need to understand what a probationer is in general. When a person is taken on for employment but put on an observation period, it can be considered a trial for a certain period to observe his/her performance in that job or position. Thereafter, if his/her performance is found satisfactory, he/she is confirmed as an employee of the organization.
In general, the probation period can be considered a contract for the specified time mentioned in the appointment letter. The confirmation depends on his/her performance during the period, or otherwise, it is terminated upon completion of the period. Non-confirmation for the job cannot be treated as termination. It now depends on the text mentioned in the appointment letter of the probationer. Are the probationers informed regarding their performance during the period or counseling sessions? It is essential to raise an alarm as most of the time there is misuse of probationers.
From India, Mumbai
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