Business Development, Employee Relations,
Mahesh S Patil
Hr Generalist- Statutory Compliance,salary
Manpower Planning
Assistant Manager - Hr
Swetank Sinha
Human Resource
Income Tax
+2 Others

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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..

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.

From India, Delhi
once the employee completed his notice period, his salry has to pay along with F & F Settelment.
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

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.

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.

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.

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.

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

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..

From India, Madras

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