Dear HR professionals,
I am an employee and have some concerns regarding the exit clauses mentioned in my appointment letter, listed below. My queries are also stated below. I would really appreciate your help and guidance as I am on the verge of submitting my resignation and will encounter these issues very soon.
Policy clause: It is mentioned that either party can terminate the appointment by giving a notice of 3 months or pay in lieu.
Q: Can the company still enforce their decision to require the full 3 months' notice period? Or can I choose to pay in full or partially in lieu to reduce the notice period?
Policy clause: Leaves cannot be taken during the notice period.
Q: Can I use my earned leaves to shorten the notice period? Is this also subject to the company's discretion?
Policy clause: Salary will be withheld for 3 months and released after the Full and Final Settlement (FNF), which takes 30 days (totaling 4 months).
Q: Is it legal and compliant with the laws to withhold the salary for the entire 3 months' notice period in my case? Additionally, with the 30-45 days processing time for FNF, the settlement payout is delayed to almost 4-4.5 months.
I have agreed to these conditions in my appointment letter, and I am close to resigning and accepting a new offer. It would be beneficial for me to reduce the notice period to accommodate the new offer.
Any guidance or assistance on the above points would be greatly appreciated.
Thank you,
Rohan S
rohans2k10@gmail.com
From India, Mumbai
Acknowledge(0)
Amend(0)
I am an employee and have some concerns regarding the exit clauses mentioned in my appointment letter, listed below. My queries are also stated below. I would really appreciate your help and guidance as I am on the verge of submitting my resignation and will encounter these issues very soon.
Policy clause: It is mentioned that either party can terminate the appointment by giving a notice of 3 months or pay in lieu.
Q: Can the company still enforce their decision to require the full 3 months' notice period? Or can I choose to pay in full or partially in lieu to reduce the notice period?
Policy clause: Leaves cannot be taken during the notice period.
Q: Can I use my earned leaves to shorten the notice period? Is this also subject to the company's discretion?
Policy clause: Salary will be withheld for 3 months and released after the Full and Final Settlement (FNF), which takes 30 days (totaling 4 months).
Q: Is it legal and compliant with the laws to withhold the salary for the entire 3 months' notice period in my case? Additionally, with the 30-45 days processing time for FNF, the settlement payout is delayed to almost 4-4.5 months.
I have agreed to these conditions in my appointment letter, and I am close to resigning and accepting a new offer. It would be beneficial for me to reduce the notice period to accommodate the new offer.
Any guidance or assistance on the above points would be greatly appreciated.
Thank you,
Rohan S
rohans2k10@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Rohan,
Generally, in contracts of employment, employers become the dominant party by subscribing to certain terms and conditions of the contract, mostly aligning with the policies of their organization rather than complying with or conforming to legal conditions or conventional principles of equity. Employees also unconditionally accept them in a "take it or leave it" situation. Notice clause on unilateral termination and the payment clause of final dues on termination of the contract are invariably examples of such practices.
Coming to your queries:
1) In the larger interest of the industrial establishment and the uninterrupted continuance of its administration, the employer can insist on the actual service of the exiting employee during the entire notice period despite the buy-out clause of the notice period. The buy-out, whether in full or part, is always subject to the discretion of the employer.
2) It depends. The notice period does not add up to the privileges of the outgoing employee or simply entitle him to idle away on personal preoccupations. Leave cannot be claimed as a matter of right by an employee, particularly on the eve of his departure, simply to exhaust unavailed leave. Therefore, the sanction of any leave during the notice period is determined by the discretion of the employer and the purpose of the leave applied for.
3) Certainly, it is illegal as it flouts the legal norms of payment of various dues on termination of employment for whatever reason.
I would like to highlight that peaceful and smooth separation depends on your interpersonal relationship with your superiors and the attitude and magnanimity of the organization as a whole.
From India, Salem
Acknowledge(0)Amend(0)
6185Generally, in contracts of employment, employers become the dominant party by subscribing to certain terms and conditions of the contract, mostly aligning with the policies of their organization rather than complying with or conforming to legal conditions or conventional principles of equity. Employees also unconditionally accept them in a "take it or leave it" situation. Notice clause on unilateral termination and the payment clause of final dues on termination of the contract are invariably examples of such practices.
Coming to your queries:
1) In the larger interest of the industrial establishment and the uninterrupted continuance of its administration, the employer can insist on the actual service of the exiting employee during the entire notice period despite the buy-out clause of the notice period. The buy-out, whether in full or part, is always subject to the discretion of the employer.
2) It depends. The notice period does not add up to the privileges of the outgoing employee or simply entitle him to idle away on personal preoccupations. Leave cannot be claimed as a matter of right by an employee, particularly on the eve of his departure, simply to exhaust unavailed leave. Therefore, the sanction of any leave during the notice period is determined by the discretion of the employer and the purpose of the leave applied for.
3) Certainly, it is illegal as it flouts the legal norms of payment of various dues on termination of employment for whatever reason.
I would like to highlight that peaceful and smooth separation depends on your interpersonal relationship with your superiors and the attitude and magnanimity of the organization as a whole.
From India, Salem
Acknowledge(0)Amend(0)
Dear Sir,
Thank you for your response. I really appreciate your directions and help here.
Regarding the last point, I have observed that salaries are held for only one month in most organizations, even if the notice period is three months in total. In cases where the salary is withheld for such a prolonged duration, I find it illogical and potentially not in compliance with the law. For a single earner, it can be quite challenging to manage under such circumstances.
Could you please provide further guidance on what can be done in this situation?
Thanks,
Rohan S
rohans2k10@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Thank you for your response. I really appreciate your directions and help here.
Regarding the last point, I have observed that salaries are held for only one month in most organizations, even if the notice period is three months in total. In cases where the salary is withheld for such a prolonged duration, I find it illogical and potentially not in compliance with the law. For a single earner, it can be quite challenging to manage under such circumstances.
Could you please provide further guidance on what can be done in this situation?
Thanks,
Rohan S
rohans2k10@gmail.com
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Rohan,
Though an employee gets wronged and unnecessarily made to suffer economically by his employer, at times, it would not be advisable to take recourse to strict legal remedies. As administration is ultimately in the hands of many people in a hierarchical fashion, just a delay or lackadaisical approach in a stage can cause an enormous delay in the final disposal/clearance in employee matters, particularly like F&F settlement. Even in Government Service where there are clear-cut rules to settle the dues to employees on their termination, sometimes, their own colleagues in service delay things inadvertently or otherwise, making the ex-employee run from pillar to post. These observations are not intended to justify such delays or to calm down the affected person. On the contrary, they are pointers to the ground reality and make one get thoroughly prepared.
From India, Salem
Acknowledge(0)Amend(0)
Though an employee gets wronged and unnecessarily made to suffer economically by his employer, at times, it would not be advisable to take recourse to strict legal remedies. As administration is ultimately in the hands of many people in a hierarchical fashion, just a delay or lackadaisical approach in a stage can cause an enormous delay in the final disposal/clearance in employee matters, particularly like F&F settlement. Even in Government Service where there are clear-cut rules to settle the dues to employees on their termination, sometimes, their own colleagues in service delay things inadvertently or otherwise, making the ex-employee run from pillar to post. These observations are not intended to justify such delays or to calm down the affected person. On the contrary, they are pointers to the ground reality and make one get thoroughly prepared.
From India, Salem
Acknowledge(0)Amend(0)Engage with peers to discuss and resolve work and business challenges collaboratively - share and document your knowledge. Our AI-powered platform, features real-time fact-checking, peer reviews, and an extensive historical knowledge base. - Join & Be Part Of Our Community.
Exit.xls
06b-Form VI-B (Notice of Commencement of Contract Work).pdf
Exit-interview_ 195.doc