What's the general HR policy if notice period is not served?

Hi all,

I need some clarifications on the general HR policy for an organization if the notice period of one month is not served.

Let me give you a specific example:

Employee 'A' puts in his resignation on 14 November 2007. As per the clause in the company's appointment letter, the notice period to be served is one month i.e. 30 days.

So that means that employee 'A' would be working till 13 December 2007 as his notice period states and therefore he gets paid till 13 December 2007. In this period he would be assisting in the smooth transition of his work and responsibilities to the person who takes over his role.

Now the employee puts in a request that he wants to be released on 30 November 2007. So effectively notice period served is 16 days.

My question here is - Does the employee get paid till the day he works i.e. 30 November 2007 inspite of not serving his notice period or his 14 days salary gets cut and he gets paid till 14 November 2007 only as a compensation for his notice period not served??

Please advise. Waiting in anticipation.

Regards,
Jharna

Hi,

I would like to respond to the query raised by you.

In any particular case wherein the employee is not serving the entire notice period for the time for which he/she is required to serve, then he shall get paid to the period for which he has given his service to the organization and for the balance period the notice period amount shall be recovered.

In your particular case, the employee has to pay back to the company the notice period amount for 14 days, the period for which he/she is not serving the company.It can either be one month gross / one month basic ( as per company policy).

One has to ensure and be careful on the organization policy i.e the amount to be recovered whether it is on Basic or the entire salary for the month and the period for which the recovery has to happen.

Hope my clarification responds to your query to some extent.

Hi all,

This is so embarassing - every time I submit a query I get no replies and no help inspite of many views by CiteHR members!!

Is it only me? Or is something wrong with the kind of queries I post? :? Or am I posting them in the wrong forum??

Please advise..........

Waiting in anticipation

Jharna

Hi

Either the employee has to serve one montgh notice period or he has to pay one month salary to the company.

Now, if the employee works ony 14 days after serving the notice period then he need to submit amount for the rest of the 16 days.

Once the amount will be recvd by HR. Then the processing will be start and the employee will get paid for 14 days.

Thanks

Manish

Hi Manish,

Thanks for the prompt reply!!

I have another question in response to your answer; can we instead cut the amount from the employee's salary? So in that case he gets paid till 14th November 2007 and works till 30th November.

Please advise again....

Jharna

Hi,

In this scenario, very rightly said in the previous post that the employee has to pay for the number of days he has not served the notice and would be paid for the number of days worked. In this case he would be paid till 30 Nov, however he has to pay the company 14 days basic/ gross salary as per the clause in the appointment letter.

The other work out can be that his 14 days notice pay is deducted from his last month salary during the F&F settlement.

Hope this would help.

Regards
Anurag

Yes I agree with Anurag

But what will be better. Ask him to work till 30th Nov. And on the last working day he need to submit the cheque for the rest 13 days.

Once you recv the amount that means the final settelement from the employee has been done. Now, You can issue the reliving letter and experience letter. And then you can go for the F&F settelement.

Thanks

Manish
+

Thanks a lot!!

This makes things much clearer; I have been asking Accounts to deduct the requisite amount from the employee's last month salary and pay till 14th November 07 only. I think that works out better than paying the employee till 30th November 07 and then collecting a cheque of the amount due for the 14 days not served.

Another scenario is this - In one case, the employee started arguing with me that since he didnt work till 14 December 07 (that is effectively the one month notice period to be served by him), he is rather helping the company save on those 14 days of payment due for the next month and so he should be paid till 30 November 07 i.e. the date till which he worked.

Whew!! That was one long sentence but I hope I am making sense!! But I hope I am given guidance on the same again.

Actually I do not have a degree in HR; I have a Bachelors in Psychology so I am continuously learning on the job. Therefore thank you so much for your help once again.

CiteHR is a wonderful site for freshers like me; I am only 6 months into my job in HR.

Waiting for a reply to the other query posted.

Jharna

hi,

A employee when joins any organisation he/she has to serve the notice period as decided by the company, and at the time of joining and signing his appointment letter that condition is being clearly mentioned in that, so he has to comply with it. your second query is abt the payment option, I would suggest you to deduct the remaining period of notice period not served from emplyee salary while making F&F settlement.If dat employee says that the company would be benefitted in terms of not paying him for rest of 15 or 16 days den u can prove him abt the imporatnce/ relevance of notice period to him like
1) arranging the other candidate for the same position as well as getting him/her trained in the same tasks by the leaving employee.

2)at the time of joining you have agreed to the same which make it a legal & statutory compliance on his part.

So, he has to follow the HR policies as designed.

I hope i have answer all your queries. You was complaning that ur post doesnt get enough responses from citehr memebers, so now can i say dat its wrong. If any of our members demand any suggestions or any queries we all are here 2 help them in best possible way.

Thanks Ishita!!

I really appreciate all the help I have received on CiteHR. As I have mentioned I am learning on the job; all inputs are really valuable for me!!

Its been a great learning experience so far!! No complaints!!

Many thanks,
Jharna