Notice pay if an employer refuses to accept notice period

HRprof · #1 02-03-2007, 03:54 PM

Hi

We have been having this debate for a while and I seek the advice of all of you on this issue.

If an employee resigns and gives the company one month's notice. The company wants the employee to not wait for a month but quit immediately.

Should the company pay the employee a month's salary because they are relieving him early?!

regards
HRprf

lathasri · #2 02-03-2007, 05:32 PM

Hi Hr Prof,

If the companies Policies have incorporaed the procedure to give one month Notice, Then this is something serious were Personal Discretion have no chance, If no Standard policy is there salary need not be paid.
In other point of view its not a good practice to prepone the relieving, which could lead to misunderstanding and even chances of effecting the culture of the stable associates.

Regards

Srilatha

Bibhutosh Bhadauria · #3 02-03-2007, 06:18 PM

Hi,

Offcourse Company has to pay a Notice Pay, beceause it is the company which wants the employee to quit early, not the employee as he has legally resigned and ready to render his services on the notice period.

The Company will have to pay the Notice Pay in this situation.

Thanks

Bibhutosh Bhadauria

vikmod · #4 02-03-2007, 06:27 PM

Most of the org these days include a two-way clause stating that amount equivalent to 1/3 monts salary needs to be paid in lieu of notice pay. It is also included that the employer has the discretion whether or not to accept salary in lieu of notice.

The idea behind the notice period is that the organisation can find a replacement and there can be a proper handover. Thus it finally rests on the management whether or not to accept notice pay.

Regards

HRprof · #5 02-03-2007, 06:28 PM

Thanks, guys for the input! Really appreciate!

So, if there is no clause which says "management's discretion", then the company should pay.

sagala amarnath · #6 06-03-2007, 03:19 PM

Hi All,

The company need not pay any salary/compensation for relieving the person earlier than expiry of notice period.

It is prerogative of the employer/company to reliever any body before due date of notice period. However, if the company inisist him/her to stay till the last day of notice period, then they have to stay else, deduction for short notice period will apply.

Also, the terms of employment/notice period will have to be appropriately worded covering the above mentioned clauses.

With best wishes

S.Amarnath

Amitmhrm · #7 09-03-2007, 03:44 PM

Hi HR Prof,

The company will have to pay the Notice period amount. Because it is on their will whereas employee is ready to serve the Notice period. So if he is ready then to remain there till the end of Notice period then definitely we are going to pay him salary till date. So if company ask him to leave organisation before then definitely he have to pay the salry of notice period in lieu of.

Even Notice period is applicable on both the sides, it comes under custom to make arrangement of replacement. And handover of all the documents to the replacement.

Regards,

Amit Seth.

guzzuravi · #8 09-03-2007, 04:17 PM

Hi

Yes, company has to pay the employee in such a case.

Regards

G.Ravi

maheshppatel · #9 28-05-2008, 05:39 PM

Yes, co. has to pay salary in lieu of notice period. OR as per the condition of Appointment letter.

Regards,
Mahesh Patel

Rekha · #10 28-05-2008, 05:50 PM

It totally depends upon the appointment terms & conditions.

If the terms & conditions say that either side will have to give one month's notice or one months salary in lieu of that, then definitely it that case company is liable to pay the salary to the employee concerned.