Dear Sir,
I want the solution to a question. In my organization, there is a 90-day notice period. When an employee resigns, one employee did. After resigning, the employee took a 22-day leave after one month. The Head of Department (HOD) approved the leave. The HR Manager prepares the full and final settlement after the employee is relieved. The notice period recovery and Leave Without Pay (LWP) days are deducted from the settlement. I would like to know if these deductions are legal or illegal. Kindly advise me.
Thank you.
From India, Gurgaon
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I want the solution to a question. In my organization, there is a 90-day notice period. When an employee resigns, one employee did. After resigning, the employee took a 22-day leave after one month. The Head of Department (HOD) approved the leave. The HR Manager prepares the full and final settlement after the employee is relieved. The notice period recovery and Leave Without Pay (LWP) days are deducted from the settlement. I would like to know if these deductions are legal or illegal. Kindly advise me.
Thank you.
From India, Gurgaon
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Dear Sam,
Every unilateral termination of the contract of employment, either on the side of the employee by way of formal resignation or discharge simpliciter by the employer, has to be preceded by a notice of a certain duration prementioned in the contract of employment or as per the service regulations. Failure in this regard by one party would entitle the other party to claim compensation based on the amount of salary payable for the period of notice. The objective behind such a clause of unilateral exit is to enable the employer to find a suitable substitute and the employee to overcome the difficulties of loss of earnings due to such an involuntary and sudden exit.
Such an exit clause may provide for the buy-out of the notice period by the employee in full or in part subject to the discretionary acceptance of the employer. Otherwise, the employee has to serve the notice period and in case of failure, the employer can deduct the same from the F&F dues or refuse to relieve him and initiate disciplinary action for unauthorized absence, which can result in the dismissal of the employee.
Normal industry practice dictates that no leave would be allowed during the notice period. If formally sanctioned, it cannot be treated as LOP.
In the given case, leave salary should not be recovered or deducted if there is sufficient leave in the employee's leave account as it stands already sanctioned; only the salary for the unserved notice period can be deducted.
From India, Salem
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6185Every unilateral termination of the contract of employment, either on the side of the employee by way of formal resignation or discharge simpliciter by the employer, has to be preceded by a notice of a certain duration prementioned in the contract of employment or as per the service regulations. Failure in this regard by one party would entitle the other party to claim compensation based on the amount of salary payable for the period of notice. The objective behind such a clause of unilateral exit is to enable the employer to find a suitable substitute and the employee to overcome the difficulties of loss of earnings due to such an involuntary and sudden exit.
Such an exit clause may provide for the buy-out of the notice period by the employee in full or in part subject to the discretionary acceptance of the employer. Otherwise, the employee has to serve the notice period and in case of failure, the employer can deduct the same from the F&F dues or refuse to relieve him and initiate disciplinary action for unauthorized absence, which can result in the dismissal of the employee.
Normal industry practice dictates that no leave would be allowed during the notice period. If formally sanctioned, it cannot be treated as LOP.
In the given case, leave salary should not be recovered or deducted if there is sufficient leave in the employee's leave account as it stands already sanctioned; only the salary for the unserved notice period can be deducted.
From India, Salem
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If an employee wants to take leave during the notice period, it is up to the company's policy and the agreement between the employee and the employer. If the company allows it, the leave can be taken, but it may also be considered as leave without pay (LWP) or the notice period recovery may be deducted. The specific details on how the leave and recovery would be handled would depend on the company's policies and the agreement made between the employee and the employer.
Check the leave policy in India.
From India, Noida
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Check the leave policy in India.
From India, Noida
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(Fact Checked)-The user reply is mostly accurate. It correctly states that the handling of leave during the notice period depends on the company's policies and the agreement between the employer and the employee. It may lead to leave without pay (LWP) or notice period recovery deductions. It is advisable to refer to the company's specific policies and agreements for clarity. (1 Acknowledge point)
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CiteHR.AI
(Fact Checked)-The user reply contains accurate information regarding notice periods, leave during notice period, and deductions. It aligns with standard labor laws and practices. (1 Acknowledge point)