Respected Seniors

As per Co. Appointment letter, the Notice period is 15 days for 6m, 30 days for 1yr and above one year of Service, it is 60 days or else the first party has to pay for the balance days to the second party (both employer and employee)

Now one of our Employee was asked to submit resgnation bcoz his performance was not well. he has already completed more than one year here. As advised he has also given resg. with two months notice but the mgmt have asked him to leave within 30 days and told him that no salary will be deducted for the balance 30 days and he will be exempted from this.

But now the employee is asking that if he has to leave within 30 days then he needs to be paid the notice period amt from the co. for the balance 30 days.

We tried to help him by giving exemption in deduction and also by not giving termination letter but because of his negative attitude, the higher Mgmt has now decided that he has to leave within 30 days and we will also be deducting the salary for the balance 30 days where as the employee is neither ready to leave, nor ready to pay for the balance 30 days and in reverse is asking us to pay to him for the balance 30 days.

Please suggest who is correct and what are the next action we have to take? The emp has given the resg. letter with 60 days time on 5th December 2009 that means the 30 days will be completing on 5th January 2009.

Seniors........... pls suggest and help us to get out on this issue!!!

Thanks in advance

Mba Final Semester Student
Ramesh Sood
Agm (hr)
Hr Consultant
Nirmal Rana
Associate Vice President - Hr
+2 Others


Hi Ramdev

When the Employer is not interested in the employee and what to relieve him with in 30 days, he got to make the payment for next 30 days as per the terms of your appointment letter.

As you said If the either parties got to relieve them selves, they have to submit 2 months notice either side. In your case the employer is not interested on the employee, then he had to oblige the terms and conditions of the appointment letter and settle his account by making payment of 2 months and relieve him immediately, why to accept 30 days of notice from the employee.

More over why the question of termination, the employer is not interested and advised the employee to resign and the employee had obliged the employer verdict and resigned, he had not countered on the employer decisions.

Why to raise the issue and build it more complicated, it is best to relieve him by making 2 months notice pay and wash off your hands. OR As he submitted 2 months of notice period, you let him work for 2 months period and make his payment, this way also you can do.

Mohan Rao
Manager HR

From India, Visakhapatnam

Dear Mr Ramdev Co has to pay him 2months salary (his last 2months)...even if you ask him to leave 1month early...according to me. siddharth
From India, Surat

Hi Ramdev,
As per your appointment terms & condition, i feel your organization should pay him another 30 days salary, else if employer is not et al interested in the employee than there is no point in pulling the matter to the worse side. Cut it short, pay him 60 days salary and relieve him.
It will definitely create a good impact in the other employee's mind.

From India, Mumbai
Hi Ramdev,
The Employer will have to pay 1 month salary to the employee as per the terms of the agreement. If you are paying one month salary, please ask him to give you a letter requesting to relieve him early by giving the notice pay. If you are not taking a letter from him, this would be considered as forced termination.

From India, Mumbai

Dear All ,
In my opinion , one has to satisfy 2 conditions - one terms of appointment and secondly what is transpired between the managment and the employee .
Irrespective of notice mentioned by an employees , if appointment terms clearly states of 1 month period , it is obligatory on the part of the company to reply giving facts as appearing in the appointment as regards Notice period and accordingly accept . No employee can insist of either extention beyond 1 month in this particular case or otherwise nor he has right to claim compensation for banance period .
Hope , this will clarify some doubt if exits .

From India, Mumbai
Dear Rama,
If the appointment letter indicates that that either party can terminate the contract with 2 months of notice or salary in leiu of notice then its an obligation of employee(wish to resign) to serve 2 months notice /pay amount in lieu of notice to the employer. similiarly the employeer should pay the notice pay if the employee is asked to resign from the company.

From India, Dewas

The concept of notice period is fair to both employer and the employee.

It gives an employer a grace period to take handover from the outgoing employee. Now in case the employee is unwilling to serve notice, then its a loss for the company, in which case it can "waive or recover" notice period compensation from the employee, by making a recovery from his F&F.

SIMILARLY, notice period gives an employee a grace period to find an alternative arrangement, in case the employer asks him to leave. Now depending on the terms of COE, if the employer is not allowing employee to serve full notice then employee can claim for notice period compensation (since its a loss of salary for him for that duration) and the employer is liable to pay.

As far as termination is concerned, it leads to bigger legal hassels for the employer than for the employee, specially in case of non performance since its usually difficult to prove.

1. Were the performance issues of this person highlighted to him in writing?

2. Was he put on a PIP with a fixed time frame for review?

3. Was he assigned a mentor during this period?

4. Was his performance reviewed after the fixed duration as per thr PIP?

If the answer of any of the above questions is no, then its not just insane (how will you prove non performnace without documented proofs) but also unfair (it shows that he wasnt given a chance to improve) to think of termination.

Hope this helps.

From India, Delhi
Ramesh Sood

A good reply which talks about what should be done. A little difference of opinion which I hope you will accept. Legal hassle for employee is more than the organisation. You know employee would be without job, already under stress and wondering about finances and in all that going through hardships of court - that's a bit too much to take. Employers generally in good faith do not like to bring termination in to picture as it affects employee's career elsewhere. They generally ask the employee to resign on his own. And wisdom says that when you are not wanted you should go because proving non-performance is not at all difficult for the employer who can always issue a letter changing the role of the emplyee citing requirements of the organisation. And if employee resigns giving three months notice, employer can relieve early by paying for the balance priod. If there is no performance issue and employee resigns on his own then he must pay the notice period amount if he wants to leave before completing notice period. And once he resigns on his own, employer can relieve him early without making any payment. that's how generally the clauses in appointment letters are kept.

From India, Pune
nirmal rana
Dear Friends,

In this discussion two questions have come forth. One is on Notice pay and other is on Show casue notice on absentism.

1. The employers should be very cautious when selecting an employee. Becuase it is painful for employee and employer to face such circumstances. In ideal situation the employee should give their best to contribute for the growth of the organisation and at the same time the organisation should also give sufficient training and time to employees for adjusting to new skill and job responsiblity. In the current situation, if the organisation really feel that the employee is a wrong selection and misfit to their culture or function, then the organisation may ask the employee to leave but it must exercise fairness and equity. The organisation must observe ethics before expecting the same from its employees.Here the employee has been asked to leave so he must have been released immediately with two months pay in lieu of notice period. If he has been allowed to serve one month notice then he must be paid one month pay in lieu of balance notice period before he is releaved on 5th of Jan 2010.

2. Each organisation has set of rules and procedures in the form of HR mannual for governing such situations. As a general and rational approach, the employee must be given a fair chance to be heard under principle of natural justice. He may be absent for some bonafide reasons which may be beyond his control such as sickness or any urgent n unavoidable situation at home/family. So it is better to send him/her a notice of absentism may be with/with out show cause notice. If it is found that the absentism was willful and delibrate or with out sufficient reason, initially lighter punishment may be imposed and severity may increase on habitual offenders. If some one is found incorrigible, the last resort of termination from services may be exercise. But I feel any needy and responsible employee will correct him/herself after proper counselling/mentoring.


From India, Mumbai

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