I was working with an electronic retail chain. The company is a Dubai-based MNC. The company has the following policy regarding resignation:
Resignation Policy
Point 8 (f):
• Notwithstanding anything contained herein, this appointment can be terminated by giving three (3) months' notice in writing on either side or payment of salary (Basic) in lieu thereof.
Point 8 (g):
• In case of resignation by your accord with a desire to exercise the option of buying out the contractual notice period, you will be entitled to buy the notice period of up to a maximum of two months. However, you will be liable to serve the remainder of the notice period of one month mandatorily to enable the company to find a replacement, etc.
I left the company by serving a 15-day notice to management, which was well communicated to the senior through a proper resignation email. When I received my full and final settlement letter, I found a deduction of 75 days' basic salary, considering Point 8(f), which is applicable for termination. However, I have resigned.
There are 3-4 employees who have left the company by serving 7 to 8 days' notice, and in their case, the company has done the deduction based on 30 days.
When I asked my HR about the disparity, she said that earlier policies were not strict, but now we are strict on policies.
Please help with what to do in this regard.
From India, Lucknow
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Resignation Policy
Point 8 (f):
• Notwithstanding anything contained herein, this appointment can be terminated by giving three (3) months' notice in writing on either side or payment of salary (Basic) in lieu thereof.
Point 8 (g):
• In case of resignation by your accord with a desire to exercise the option of buying out the contractual notice period, you will be entitled to buy the notice period of up to a maximum of two months. However, you will be liable to serve the remainder of the notice period of one month mandatorily to enable the company to find a replacement, etc.
I left the company by serving a 15-day notice to management, which was well communicated to the senior through a proper resignation email. When I received my full and final settlement letter, I found a deduction of 75 days' basic salary, considering Point 8(f), which is applicable for termination. However, I have resigned.
There are 3-4 employees who have left the company by serving 7 to 8 days' notice, and in their case, the company has done the deduction based on 30 days.
When I asked my HR about the disparity, she said that earlier policies were not strict, but now we are strict on policies.
Please help with what to do in this regard.
From India, Lucknow
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Understanding Notice Period Deductions
I think the management's action in deducting the basic salary for 75 days of the bought-out notice period is in accordance with clause 8(g) of the resignation conditions. Even though the management accepted your resignation with an effective notice period of 15 days instead of the stipulated 30 days, termination of employment requiring notice includes resignation as well. You should remember that your bought-out notice period is 75 days. If you read clauses 8(f) and 8(g) together, you would understand that the management was lenient by accepting your resignation with just 15 days' notice instead of the mandatory 30 days.
There is no use in citing similar cases of others, as each case may have different considerations from the management's perspective and discretion, which cannot be questioned.
Regards
From India, Salem
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6108I think the management's action in deducting the basic salary for 75 days of the bought-out notice period is in accordance with clause 8(g) of the resignation conditions. Even though the management accepted your resignation with an effective notice period of 15 days instead of the stipulated 30 days, termination of employment requiring notice includes resignation as well. You should remember that your bought-out notice period is 75 days. If you read clauses 8(f) and 8(g) together, you would understand that the management was lenient by accepting your resignation with just 15 days' notice instead of the mandatory 30 days.
There is no use in citing similar cases of others, as each case may have different considerations from the management's perspective and discretion, which cannot be questioned.
Regards
From India, Salem
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Thank you, Mr. Umakant, for your reply. It would be great if you could help me further.
1. Can I raise my voice to a labor official regarding management disparity?
2. Many people have left their jobs soon after receiving their salary by giving only a day or two notice, and no recovery is being pursued.
3. I have a full and final settlement letter of 4 employees where 30 days of calculations were made. Will it carry any weight if I bring this up with a labor official?
From India, Lucknow
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1. Can I raise my voice to a labor official regarding management disparity?
2. Many people have left their jobs soon after receiving their salary by giving only a day or two notice, and no recovery is being pursued.
3. I have a full and final settlement letter of 4 employees where 30 days of calculations were made. Will it carry any weight if I bring this up with a labor official?
From India, Lucknow
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Hi,
My advice: don't react. Let your employer handle the situation. You don't have to worry. If your employer takes legal action and, hypothetically, you are found guilty, the fine would be minimal, likely under ₹10,000, and such occurrences are very rare. No one has time for this nonsense. Additionally, you do not require an experience letter from this company as they have already provided you with a settlement letter. Explain your situation to your new employer, and they should understand.
I have dealt with many similar cases, so relax, my friend.
Regards,
Sohail
From India, Mumbai
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My advice: don't react. Let your employer handle the situation. You don't have to worry. If your employer takes legal action and, hypothetically, you are found guilty, the fine would be minimal, likely under ₹10,000, and such occurrences are very rare. No one has time for this nonsense. Additionally, you do not require an experience letter from this company as they have already provided you with a settlement letter. Explain your situation to your new employer, and they should understand.
I have dealt with many similar cases, so relax, my friend.
Regards,
Sohail
From India, Mumbai
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All your present questions have already been answered in my previous reply, and I request you to go through it once again. When a rule that has already been accepted prescribes the exercise of certain options in a particular way subject to some alternatives, the party exercising the option in tune with a particular alternative cannot make any complaints on the basis of a concession granted to others in this regard. The management's action in deducting 75 days of basic salary is strictly in line with the notice period condition as per clause 8(g). How can your complaint survive the logical and legal scrutiny of this particular condition of service? If you attempt to raise the issue based on allegations of discrimination or preferential treatment, the employer can simply dismiss it as an exercise of discretion on a case-by-case basis. Furthermore, your actions could potentially transform the otherwise generous employer into a rigid enforcer of exit rules in the future due to the frustration caused by your actions, which may impact the interests of future resignees.
Thank you.
From India, Salem
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Thank you.
From India, Salem
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