Hello All,
I have been working in an IT organization for the past 2 years. According to our existing HR policy, we conduct appraisals every 6 months for all employees.
Case Study: Employee Resignation and Salary Revision
Can you help solve the below issue/real problem/real case: Employee Mr. xyz joined on the 15th of Feb, 2010. According to the policy, the first six months are considered a probation period. After six months, we can revise an employee's salary, issue a confirmation letter, etc., always applicable from the new month. This means the above employee completed his probation period on the 14th of Aug, 2010. Therefore, the new salary revision depends on his performance over the last 6 months and is applicable from the 1st of Sep, 2010. We issued his new salary revision and confirmation letter. Mr. xyz was supposed to receive his new salary on the 30th of Sep, 2010.
However, Mr. xyz received a new job opportunity with another organization and resigned on the morning of the 30th of Sep, 2010. At that moment, his salary had not been credited due to an accounting issue. As per the policy, our notice period is 45 days. We accepted his resignation, and the notice period is applicable from the next day, i.e., from the 1st of Oct, 2010, for the next 45 days.
His initial CTC was 4 LPA, and the revised CTC was 6 LPA, applicable from the 1st of Sep, 2010. Due to his resignation, we stopped the salary process according to the new salary revision and paid him according to the old CTC since he resigned before his new salary acceptance. This decision was made because he may not have been willing to work with us long-term, and his salary revision was based on performance and future needs.
Questions for Consideration
1) Does the notice period start from the next day after the resignation date?
2) Is the new salary applicable to Mr. xyz?
3) In the above case study:
- Have you found any instances of unfair labor practices?
- How can we handle the above situation?
- If Mr. xyz were to resign on the 2nd of Oct, 2010, can we stop his new salary revision?
4) I would appreciate your thoughts on this matter.
With Regards,
RK
From India, Mumbai
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7I have been working in an IT organization for the past 2 years. According to our existing HR policy, we conduct appraisals every 6 months for all employees.
Case Study: Employee Resignation and Salary Revision
Can you help solve the below issue/real problem/real case: Employee Mr. xyz joined on the 15th of Feb, 2010. According to the policy, the first six months are considered a probation period. After six months, we can revise an employee's salary, issue a confirmation letter, etc., always applicable from the new month. This means the above employee completed his probation period on the 14th of Aug, 2010. Therefore, the new salary revision depends on his performance over the last 6 months and is applicable from the 1st of Sep, 2010. We issued his new salary revision and confirmation letter. Mr. xyz was supposed to receive his new salary on the 30th of Sep, 2010.
However, Mr. xyz received a new job opportunity with another organization and resigned on the morning of the 30th of Sep, 2010. At that moment, his salary had not been credited due to an accounting issue. As per the policy, our notice period is 45 days. We accepted his resignation, and the notice period is applicable from the next day, i.e., from the 1st of Oct, 2010, for the next 45 days.
His initial CTC was 4 LPA, and the revised CTC was 6 LPA, applicable from the 1st of Sep, 2010. Due to his resignation, we stopped the salary process according to the new salary revision and paid him according to the old CTC since he resigned before his new salary acceptance. This decision was made because he may not have been willing to work with us long-term, and his salary revision was based on performance and future needs.
Questions for Consideration
1) Does the notice period start from the next day after the resignation date?
2) Is the new salary applicable to Mr. xyz?
3) In the above case study:
- Have you found any instances of unfair labor practices?
- How can we handle the above situation?
- If Mr. xyz were to resign on the 2nd of Oct, 2010, can we stop his new salary revision?
4) I would appreciate your thoughts on this matter.
With Regards,
RK
From India, Mumbai
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Following are suggestions for your questions:
1) The notice period starts from the date on which the resignation is submitted, i.e., the date on the resignation letter. In some cases, if it has been held by the department head for a few days before reaching the HR department, we still consider the date of resignation and not the date we received it.
2) If the salary is not credited to his account, you can still hold it and pay the old one. However, first refer to your HR policy before making any decision.
3)
(a) As per my understanding, there is no unfair labor practice involved.
(b) You can still retain him if he is an asset to the organization by offering a competitive salary or finding other ways to convince him that this is the best organization in the world. This approach could be beneficial for both sides and help manage the situation.
(c) If the salary has already been credited, then the answer is 'NO'.
4) Be practical and accept whatever the situation is. After all, this is our job, so enjoy it.
Please reply if this is useful to you.
Thanks,
Regards,
Mitesh Valera
HR Executive
Vadodara.
[Phone Number Removed For Privacy Reasons].
From India, New Delhi
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1) The notice period starts from the date on which the resignation is submitted, i.e., the date on the resignation letter. In some cases, if it has been held by the department head for a few days before reaching the HR department, we still consider the date of resignation and not the date we received it.
2) If the salary is not credited to his account, you can still hold it and pay the old one. However, first refer to your HR policy before making any decision.
3)
(a) As per my understanding, there is no unfair labor practice involved.
(b) You can still retain him if he is an asset to the organization by offering a competitive salary or finding other ways to convince him that this is the best organization in the world. This approach could be beneficial for both sides and help manage the situation.
(c) If the salary has already been credited, then the answer is 'NO'.
4) Be practical and accept whatever the situation is. After all, this is our job, so enjoy it.
Please reply if this is useful to you.
Thanks,
Regards,
Mitesh Valera
HR Executive
Vadodara.
[Phone Number Removed For Privacy Reasons].
From India, New Delhi
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Unfair Labor Practices and Salary Revision
The unfair labor practice will occur if there is discrimination. The date on which the revision has come into effect, as per your accounting practice, is the question. You cannot choose and pick based on his resignation. If his resignation is after that, then you need to pay him the revised salary. Anyway, if he buys out the notice period, if you pay the revised salary, then he has to pay that.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]
From India, Bangalore
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The unfair labor practice will occur if there is discrimination. The date on which the revision has come into effect, as per your accounting practice, is the question. You cannot choose and pick based on his resignation. If his resignation is after that, then you need to pay him the revised salary. Anyway, if he buys out the notice period, if you pay the revised salary, then he has to pay that.
With Regards,
Advocates & Notaries & Legal Consultants [HR]
[Email Removed For Privacy Reasons]
[Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Thank you, VS Rajan. If the organization revised the salary of an employee from 1st Oct. (applicable from 1st Oct.) and due to unsatisfactory reasons (like salary, environment, technology, etc.), the employee resigned on 29th Oct., then is this revised salary applicable for him or not? We revised his salary due to our future requirements, which also depend on his performance. Based on that, he seems unsatisfied and resigned. He doesn't want to maintain a relationship with us for our future requirements, so why should we pay the revised salary?
Could you provide me with some suggestions?
With Regards,
RK
From India, Mumbai
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Could you provide me with some suggestions?
With Regards,
RK
From India, Mumbai
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