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Dear Seniors,
I got an issue with one of our employee. She has given resignation due to her own issues and informed that she will serve the notice period. but, as she has given resignation on her own, we relived her from duty today itself. now she is asking to pay 1 month salary for notice period. Please suggest me what we can do in this case.
22nd June 2012 From India, Kakinada

Saswatabanerjee
Partner - Risk Management
Tsivasankaran
Consultant
Sanjeev.Himachali
Hr & Od Consultant
Jhuma Tiwade
Manager- Human Resources
Pani Ram Arya
Human Resources
+9 Others

Hi,
The employee is willing to serve the notice but you have asked her to go so it is your obligation to pay her. Please check the resignation clause of appointment letter of your company and act accordingly.
22nd June 2012 From India, Mumbai
She has an issue, if she stated in her esignation that she will resign withe effect from afuture date which may be one month away B.Saikumar Mumbai. 09930532927
22nd June 2012 From India, Mumbai
Normally the clause reads like this

" Your services may be terminated by giving one month's notice or one month's pay in lieu of notice. You may resign from the services by giving one month's notice or one month's pay in lieu of notice"

PURPOSE:

If the management terminates suddenly, the employee will face hardship and to compensate this hardship to certain extent, 30 days notice or 30 days pay is given.

Similarly, whn an employee resigns, the Management will face the hardship of not having a person for that job and also need to spend money to manage the same job by incurring OT etc.To compensate the manegement, 30 days notice is prescribed and to pursuade employees to be sround for 30 days, notice pay is also included

Logically, bot parties can say that they do not want the compensation.

PRESENT CASE

The employee opts to resign and she gives a letter saying that she would like to be relieved on a specific date.Her intention is to leave the company and there is no hardship created to her by the Company. It is for the management to take a decision to relieve her either on the same day or on any day during the notice period.. We need to understand the purpose for such clauses and apply the logic.

Some may not agree with my argument and there had not been any case law either on this subject( To my knowledge) But I followed this with this logic for 35 years and wherever I had worked, we followed this logic.

T Sivasankaran
22nd June 2012 From India, Chennai
You need to see the relevant clauses in appointment letter, standing orders, hr manual (assuming given to emoloyees) and terms of employment if any. Some companies have a clause saying management has a right to accept resignation with or without notice, at their choice. If you have a clause to that effect, then you can relieve her and not pay

In any other case, younhave to pay notice period salary even if you do not want her in the office. If you wish to take a humane view and if you consider your reputation in job market (and also you may need to interact with the same person in another company on professional basis) then you must pay for the notice period. She may face financial hardships If she loses 1 months salary. It's not a good idea to have someone leave with a bad idea of your company when it could be avoided.

Likewise, the above arguments do not apply if she was asked to leave for fraud, shoddy work or any matter of dispute that makes it impossible for her to workin the office.

There is a practice of gardening leave in western economies that apply to senior employees. It's a period for which they get paid, can't work for anyone else or join next job, but are not wanted in office (confidentiality issues). At the same time available for anything the company might need. Unfortunately few companies follow that in india
23rd June 2012 From India, Mumbai
Hi, in my opinion you have to consider the clause of appointment letter only. regards, Pani Ram Arya
23rd June 2012 From India, Gurgaon
in this case the employee has resigned on her own and not terminated by the employer. Therefore it is the discretion of the employer to either make her work the notice period or releive her immdediately. the employee can not claim notice pay in lieu of the notice period. if the empoyer had terminated her, she would have been eligible for notice pay...
23rd June 2012 From India, Bangalore
Ms.Rupawati
Since the employee has expressed her intention to resign from 21 July 2012 but you have relieved her immediately, it is advisable, both on technical grounds as well as on grounds of administrative prudence, to pay her one month salary and end the matter on win-win situation.
B.Saikumar
mumbai
23rd June 2012 From India, Mumbai
Dear Seniors,
In our appointment letter we have mentioned that " your service may be terminated at any time by one month's notice in writing by either side". So, now she is showing that point and asking us to pay the 1 month salary for notice period otherwise she will proceed legally.
Is that point which we mentioned in the appointment letter is legally strong on Employee side? Please suggest me.
23rd June 2012 From India, Kakinada
But she has not been terminated. She has resigned. If she has resigned, its up to the employer make har work for the full notice period or releive har immediately. If she was terminated by the employer, she would be eligible for notice pay.
23rd June 2012 From India, Bangalore

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