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Thread Started by #vpriya

When will the salary be paid to an employee who is serving his notice period?
for example, a person resigns on 15th Aug and is on 30 days notice period. Now, when will he be paid the salary for the month of August and when will the F&F be given to him?
Please clarify..
24th August 2009 From India, Madras
Notice period is paid on basic salry. calculated on pro rata based.
In this case kindly clarify date of resignation, how much is the notice period & how much he has given.
Then we can decide abt. salary for the month of Aug.
24th August 2009 From India, Delhi
once the employee completed his notice period, his salry has to pay along with F & F Settelment.
24th August 2009 From India, Bangalore
Dear Vpriya

Notice period for leaving the service, depends from organisation to organisation, Generaly notice period is 1 month from any given date of tendering his/ her resignation and ends on completion of 30 days from the date of submission of resignation.

Most of the corporate sectors as on date are demanding 3 months of notice period for leving the service volentierly in order to serch for a new employee to fill the vacancy, the said clause is stipulated the the appointment letter it self, and in turn the employer also give notice period or salary equal to the notice period if at all he desires to leave the employee. The notice period must be of equal ratio as per law, if the employer give 1 month of notice period and requests the employee to give 3 months of notice period it is illegal and and stands as a nul and void agreement betwee the parties.

The salary must be paid in full i.e. Basic + D.A and other allowences as the employee was drawing as on date of submitting the resignation + his full and final settlement amounts i.e. Leave with wages for the balance leave + Gratuity if the employee completes 5 years and more of service in the said organisation + Bonus @ 8.33% upto the date of leaving the service during the year. If the employee desires to equit the employee immediately he had to pay 1 month notice period salary which all in total the employee was drawing as the date of quiting the services.

As you said if the employee submits his resignation with one month notice period in the middle of the month, he had to be paid his full month salary for the month of August as usually along with other employees and the balance 15 days salary to be paid along with his full and final payments.

Mohan Rao

Manager HR
24th August 2009 From India, Visakhapatnam
There are 2 possibilities in the scenario described above.
1. Serves full Notice Period
2. Serves Incomplete Notice
1. If the employee serves his/her full notice period the salary can be released at the end of the month or it can aslo be given alsong with FNF depending on the Company Policies.
2. If the employee serves incomplete notice period then the salary of the last month will be given in the FnF or may not be paid depending on the terms of the Appointment letter or employee agreement.
24th August 2009 From India, Mumbai
We follow the process of moving the resigned employees under stoppay category. Subsequently, on the final day of work, settlement forms will get processed and the amount will be released
There is no strict guidance on this subject and may vary from company to company.
24th August 2009 From India, Hyderabad
There is no single practice in the industry. In my opinion, it is better told salary of employee and pay it along with full and final settlement. This give opportunity for employer to recover any dues with respect to his exit.
It is always advisable to inform employee in writing about this arrangement as soon as his/her resignation is accepted. If you don't inform, then he may be in trouble as he may not have sufficient money to pay EMIs, which usually hit beginning of the month.
24th August 2009 From United States, San Diego
Hey Vpriya,
Resigned date = 15 Aug
Last working date = 14 Sep
Salary for Aug - Has to be paid in full
On 13/14 Sep - Employees full and final settlement is paid.
Catch - If you are an employer, you need to be cautious. Staff may not come to work after 31 Aug (or wheneve he gets is salary), if his F&F stake is not high.
30 a notice period.. within which you can terminate his sevrice if nt required. You don't have to wait till 30 days and deal with him. Just settle his case till his last working date which ever you decide. But if he is a Sr personnel there is no option since handover will take time.
Few company usually hold the entire salary for Aug till last working day and I don't buy this practice particularly if the subject is a good employee.
24th August 2009 From Saudi Arabia, Riyadh
Hi Vpriya,
Firstly the notice clause has to be part of the agreement / appointment letter /explicitely stated in documents that govern employment conditions. Assuming that is there, i agree with Mitra, the first option is to relieve him at the earliest if not critical. else it is 30 days (normally).
With regards to the F&F it is best done on the last day itself, but the danger is that if any outstanding is due and not reported immediately, then you have nothing to fallback on in terms of recovery. Completing the F&F with the next salary cycle can be considered.
Capt Tapas
25th August 2009 From India, Mumbai
Hi All..
wonderful to see all different persepctives.. thks a ton..
i thought i will elaborate a bit more..
Our company has a 30 days notice period for all confirmed employees. we usually pay the employee's salary in full even while on notice period. however in this case the risk factor is high if the employee doesn't turn up to serve the full notice period after getting the salary, particularly if we have to recover various loans etc from him. hence contemplating on various options to cover the risk for us as an employer.
now, we have almost decided that we will release 50% of his salary while on notice period and release the rest along with F&F on his Last working day. we are working out the feasibility...
so this way we also cover the risk to an extent and the employee also doesn't have to wait for his salary unduly long period, considering his commitments..
Your thoughts on this are welcome..
25th August 2009 From India, Madras
1. When a Person is Working he has to be Paid for that.
2. I am sure when he has given the resignation he never runs away.
3. He intimates you well in advance that he is leaving the Job.
4. He still continues to Work & employee of the Organisation.
5. Why u want stop the payment for the person who is your employee, just because he has given the Resignation Notice.
6. Pay him the Salary for the whole of August
7. The balance 15 days payment along with other with dues can be paid as Full & Final Settlement
8. He is for his Career Prospects
9. Give Him a Smooth Transition
10. Put Ourselves in his Shoes…
25th August 2009 From India, Coimbatore
The moment someone gives a notice all payments come to a halt and F & F settlement is done. So
Worked Till = August
Notice given = on 30th August for 1 month
F & F = On the last working day, notice pay + August salary to be given,
It is easier to handle all resignations in this way.
No need to be emotional,as per company policy you can mention to all,in the employee handbook that the moment one puts in resignation,all payments will be stopped and F & F settlement will be done on the last working day. This is just as per the policy and not any other intention to trouble people. So one can manage his finance accordingly.
25th August 2009 From Korea, Seoul
Hi vpriya,
Once an employee tenders his/her resignation, all dues payable to him become part of the Full and Final settlement including pay of the notice period. Full and Final should be ready on the last working day before the closing hours of office.
with regards,
25th August 2009 From India, Delhi
madam v priya
Notice period differs from Company to Company. It can be one month or three months depending on the terms and conditions of the employment.During the notice period either the employee should actually be present and serve or if the employee wants leave the service with immediate effect the gross emoluments equivalent to the notice period should be deposited with the employer, before the last date of the employment.
Notice period salary should be paid either on the last date of employment or in the month end.
25th August 2009 From India, Mumbai
Hi Priya,
Nowadays all employees are well aware about notice period. So that they are submitting their resignatio letter after closing day of account for salary. When you can't stop salary to credit on his account then only they are submitting the letter. Normally we are calculating from 26th to 25th of every month. Then only we can disburse salary on or before 1st.
25th August 2009 From India, Madras
Hi vpriya
I think you have to pay his August salary with regular and can made a f&f in next month salary.
some of the subjects in the organization are very sensitive, salary is one of it. So I think you should give his salary as early as possible. This maitains our organization reputation in market.
Sandeep More
25th August 2009 From India, Mumbai
I agree with you Arul, employees think on all these lines while putting in their papers.. still as an employer, we need to see what is fair for both the parties and be some where in the median.. so the question is not which is right or wrong, but which is fair..
hope you all agree..
Thanks a ton,
26th August 2009 From India, Madras
Yes Sandeep, the Organization's reputation has a high stake in this. But as i said earlier, it's about being fair to the employees and also to the employer..
what ever said and done, there are people who do abscond without serving notice period, without notice, i'm sure you all would have come across such instance.. so basically we need to have a cover for such risks and at the same time be nice to employees.
26th August 2009 From India, Madras
Hi Priya,
Notice pay can be paid with in 45(max) days also but through F&F Settlement.
Since his contribution has to be settled in statutory payments also mainly PF.
It depends some compnaies make recovery and short fall of notice period all these are calculated on basic compenent in the salary.
26th August 2009 From India, Madras
Hi dear, pls find the attachment if you have any doubt in this pls feel free to contact me thanks, Lawrence K 97890 63375
26th August 2009 From India, Madras

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Thanks All for putting things to clarity.
But, if the notice period is 3 months and employee is serving the notice period. Please let me know if it is legal to stop his payment for 3 months plus 45 days of F&F (4.5 months) despite his work?
All responses appreciated.
24th August 2012 From India, Pune
Hai , My name is Giri, I am working in a automobile company as a senior sales manager , this is my 4 th month , i am under probation period for 6 months , Now i got a better offer in another comapany and also i am not happy with present organisation . i have submitted my resignation on 20th march . I know during probation period , notice period not required , now due to one issue of customer they are holding my releaving and i am not related to that issue directly , actual related people regarding this issue is two other people . now management is asking me to slove this issue and get releaved but as per my new offer , my reporting is on 6th april . now i want to leave this company with out involving in that issue . my query is that , shall stop comming to office with out informing them , if i do so, will it be any problem . And also i dont required any releaving letter to my new office also becoz it is my previous company and they only called me back with good position . If i do like this , will company take any legal action on me ?
30th March 2015 From India, Hyderabad
Holding someones salary is not legal at all, even in humanity level. In such cases where more than 1 months should be paid as notice period then keep on giving salary on time, don't hold till the last date for F&F.
10th June 2015 From India, Bhopal
Hi All,
Pls. let me that if there is a F&F case in month of August which has 31 days.
Then how many we have consider for pro-rata basis calculation??
30 days or 31 days & why???????
16th August 2017 From India, Noida
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