Raj Kumar Hansdah
Shrm, Od, Hrd, Pms
Hr Executive

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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 probationary period, the employee has to give minimum 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 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 minimum 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 of 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 office, when i called him he said hes not continuing. 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. Only mistake I did was that i did not reply to his resignation email though verbally it was communicated to him that his full n final settlement is on hold.The procedure was sent to him over the email when he joined , also the offer letter says about servng 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 didnt give any notice but the company is because his salary was not cleared.

Please reply.Its very urgent for me.



From United States, Minneapolis
Dear sonalduhra
Under the circumstances; you must immediately process for Full and Final settlement of the employee; after getting his resignation accepted.
With-holding an employee's salary is absolutely illegal.
However, if instead of wasting time in such procrastination, if you process for F & F settlement immediately; then you can show the outstanding salary as, ADJUSTED AGAINST the Notice Pay.
This is better and prudent; rather than with-holding the salary (for services already rendered) and earning the ire of the ex-employee; his 'lawyer family members' and the Law; and letting the image of the company get a hit.
Warm regards.

From India, Delhi
Thanks a lot Mr. Kumar.
I have mailed this employee that according to the company's 'resignation & termination procedure' , after adjustement of his Earned leave balance and his August month's salary , amount equivalent to 6 days salary is due to the company from his side.
Hope now we are saved from any legal hassles. For all other cases where employees have resigned with proper notice, all dues have been cleared by the company.

From United States, Minneapolis
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