Kavitha Janya
6

Dear Sinha,

Case 1:

Is straight forward. Nothing to explain

Case 2:
If the employee has agreed to serve notice period, and even then the company wants him to quit, then ethically the company is bound to pay the entire 45K. Such a situation should not arise at all within the organization. If the employee is good, then he should be allowed to complete his tenure with respect and dignity. And if it is a trouble character, so much so that we cannot wait to get rid of him; then we should have terminated him long time ago without waiting for him to ditch the company. This really depends on how you coach your managers in handling such situations, and what they should communicate to HR.

If the employee on the other hand has requested not to serve the notice period, then we deduct his salary for the days not worked and also pay basic amount for the number of days worked. This too, with an undertaking from the employee so that there is a clear understanding that the employee has requested for this. Again; sometimes it depends on the management’s discretion to pay the full salary in some cases.

I hope your doubts have been clarified.

Regards,
Kavitha

From India, Bangalore
Kavitha Janya
6

Dear Sinha,

Case 1:

Is straight forward. Nothing to explain

Case 2:
If the employee has agreed to serve notice period, and even then the company wants him to quit, then ethically the company is bound to pay the entire 45K. Such a situation should not arise at all within the organization. If the employee is good, then he should be allowed to complete his tenure with respect and dignity. And if it is a trouble character, so much so that we cannot wait to get rid of him; then we should have terminated him long time ago without waiting for him to ditch the company. This really depends on how you coach your managers in handling such situations & also the active involvement of HR.

If the employee on the other hand has requested not to serve the notice period, then we deduct his salary for the days not worked and also pay basic amount for the number of days worked. This too, with an undertaking from the employee so that there is a clear understanding that the employee has requested for this. Again; sometimes it depends on the management’s discretion to pay the full salary in some cases.

I hope your doubts have been clarified.


Regards,
Kavitha

From India, Bangalore
Vasant Nair
90

Dear Gaurav,
The answer to your query is simple and straightforward.
The situation is:
1. One of your employees has resigned and has given to the mangement one month's notice as per terms of his/her appointment.
2. The management had decided to relieve him with immediate effect.
Under these circumstances, it is very clear that since it is the management which has decided to relieve the employee w.i.e., they ( the management/Co.) are obliged to pay to the employee salary in lieu of the Notice Period.
Someone has very correctly observed that the employee will be joining his new assignment only after one month. Therefore, if his notice period is cut short by the management and he/she is relieved w.i.e., he/she will not be working for the intervening period. Therefore the current employer is obliged to pay him/her one month's salary in lieu of the Notice period.
Cheers!!!
Vasant Nair

From India, Mumbai
K Ganesh
If an employee resigns specifying clearly that he has to be relieved after one month, i.e. complying with the contract of employment, and if the Management decides to relieve him a.s.a.p, then one option is that you can discuss with the employee to change the letter of resignation to relieve him on a specified date so that the employer need not pay the notice period wages. The second option is that: Relieve him a.s.a.p. and pay him the balance of the notice period wages(wages here implies only the Basic Salary). Trust this clarifies.

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