Please Help - Termination Clause Not Clear - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Tushar.swar
Manager - Human Resource
Pon1965
Construction
+3 Others

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My termination caluse says, "Should the employer wants to terminate your services it can do so by giving 02 months prior notice or salary in lieu. Similarly, should you require to terminate your services then you need to give 02 months prior notice period and do so."
The clause does not say that the employee needs to pay salary in lieu. Do I need still need to pay for 01 month if I am giving only one month's notice period which my Head of Department has accepted with signature.
Is it understood by default under labour law that the employee needs to pay "salary in lieu" even if it not mentioned in his employment contract? Please reply urgently, I am approachinbg towards the end of 01 month. Thank you.

Hitesh,
The above answer appears correct to me also.Of course the drafting of the above termination clause could have avoided ambiguity.However, while interpreting a whole clause, we should read its various parts together so as to cull out its intended meaning. You should take into account the words " similarly " and " and do so "occurring in the clause. It is implied as suggested in the reply of Nravimsr.

No ambiguity. It is common in all appointment letters. Only the employer has the right to terminate you by giving payment in lieu of NP but not employee. However, it depends on the discretion of employer to accept the payment in lieu of NP from the employee.
Pon

Dear Hitesh, Salary in lieu is included / consider in the last word of "Do so"
As per the appointment order, one month's salary is due to the employer for shortfall in notice period. However the employer has the discretion to waive it if he feels so - it is of course not the right of the employee to claim. Under these conditions I suggest the following:
i) In case you are having a smooth relationship with your immediate boss, you can raise the topic with him and he shall advice you appropriately.
ii) In case the relations were far from smooth, you can ask the office to provide you with "No due certificate form" which you will have to get endorsed from all relevant Depts.(Generally when an employee resigns he is automatically provided with this form prior to his release) If HR or Accounts mention one month salary as due, pay it cooly and leave gracefully. If there is some due from the organisation to the employee you may authorize them to deduct the due from it .
Dr. T. Thomas

The Employer can terminate the employee by giving notice of 1/2/3 months or salary in lieu as per the appointment order. This will be discretion of employer whether to given notice or pay salary and relieve the employee immediately.
Similarly, the employee can also give notice of his resignation or pay salary and leave the job based personal reasons in normal course.
In case the Employer want to sent out any employee immediately, they may pay salary and relieve the candidate for so many reasons immediately.
Similarly if the employer wanted to search suitable employee, thinks that the work will suffer if he relieves the existing employee immediately, then he may give notice.
All these are based on mutual interests.

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