My company's resignation procedure is given below, please give your opinion if it is legally correct:
Resignation Procedure
1. Services of an employee during the period of probation can be terminated without assigning a reason and without providing notice.
2. For resignation during the probationary period, the employee has to give a minimum of one month's notice, which cannot be adjusted with payment in lieu of notice period or adjusted against the Earned Leave unless specifically agreed to by the Management.
3. On confirmation of service after the probation period is over, the services of an employee can be terminated by giving one calendar month's notice or one month's gross salary in lieu thereof. For resignation after confirmation, the employee has to give a minimum of one month's notice, which cannot be adjusted with payment in lieu of notice period or adjusted against the Earned leaves unless specifically agreed to by the Management in writing.
Service Certificate
Employees are entitled to a "Service Certificate" upon separation from the Company if the employee adheres to the "Resignation Procedure." If an employee does not provide proper notice of termination, both the Service Certificate and Compensation will be forfeited.
Now, one employee stopped coming to the office. When I called him, he said he's not continuing. The next day, he sent his resignation mail, and as per procedure, his salary for August wasn't paid as he did not give even a single day's notice. Now, some lawyer from his family is threatening the same and said he will go to consumer court. The only mistake I did was that I did not reply to his resignation email, though verbally it was communicated to him that his full and final settlement is on hold. The procedure was sent to him over email when he joined, and the offer letter mentions serving a 1-month notice.
Please advise if the company is at fault here. This advocate is saying that the person is not at fault if he didn't give any notice, but the company is because his salary was not cleared.
Please reply. It's very urgent for me.
Thanks
Sonal
From United States, Minneapolis
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1Resignation Procedure
1. Services of an employee during the period of probation can be terminated without assigning a reason and without providing notice.
2. For resignation during the probationary period, the employee has to give a minimum of one month's notice, which cannot be adjusted with payment in lieu of notice period or adjusted against the Earned Leave unless specifically agreed to by the Management.
3. On confirmation of service after the probation period is over, the services of an employee can be terminated by giving one calendar month's notice or one month's gross salary in lieu thereof. For resignation after confirmation, the employee has to give a minimum of one month's notice, which cannot be adjusted with payment in lieu of notice period or adjusted against the Earned leaves unless specifically agreed to by the Management in writing.
Service Certificate
Employees are entitled to a "Service Certificate" upon separation from the Company if the employee adheres to the "Resignation Procedure." If an employee does not provide proper notice of termination, both the Service Certificate and Compensation will be forfeited.
Now, one employee stopped coming to the office. When I called him, he said he's not continuing. The next day, he sent his resignation mail, and as per procedure, his salary for August wasn't paid as he did not give even a single day's notice. Now, some lawyer from his family is threatening the same and said he will go to consumer court. The only mistake I did was that I did not reply to his resignation email, though verbally it was communicated to him that his full and final settlement is on hold. The procedure was sent to him over email when he joined, and the offer letter mentions serving a 1-month notice.
Please advise if the company is at fault here. This advocate is saying that the person is not at fault if he didn't give any notice, but the company is because his salary was not cleared.
Please reply. It's very urgent for me.
Thanks
Sonal
From United States, Minneapolis
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Under the circumstances, you must immediately process the Full and Final settlement of the employee after accepting his resignation. Withholding an employee's salary is absolutely illegal. Instead of wasting time in procrastination, processing the F & F settlement immediately allows you to show the outstanding salary as adjusted against the Notice Pay. This approach is better and more prudent than withholding the salary for services already rendered, which could lead to the ex-employee, his family members who are lawyers, and the law being displeased, ultimately tarnishing the company's image.
Warm regards.
From India, Delhi
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Warm regards.
From India, Delhi
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Thank you, Mr. Kumar. I have informed this employee that, as per the company's 'resignation and termination procedure,' after adjusting his Earned Leave balance and his August month's salary, an amount equivalent to 6 days' salary is owed to the company by him. Hopefully, this action will protect us from any potential legal issues. In all other cases where employees have resigned with proper notice, all outstanding payments have been settled by the company.
Thank you,
Sonal
From United States, Minneapolis
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Thank you,
Sonal
From United States, Minneapolis
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