Immediate relieving from notice period - what is the liability on the organisation? - CiteHR
Dinesh Divekar
Business Mentor, Consultant And Trainer
Umakanthan53
Labour Law & Hr Consultant
Bharat Gera
Principal Hr Consultant
Nathrao
Insolvency N Gst Professional
Glidor
Hr Consultant
+1 Other

Cite.Co is a repository of information created by your industry peers and experienced seniors sharing their experience and insights.
Join Us and help by adding your inputs. Contributions From Other Members Follow Below...
We have an employee with contractual period of 5 years. he has completed 3 and half year. due to some reason he has been given a notice period of three months by the organisation (as endorsed in the contact of appointment). now after 20 days since he was served with notice period, he comes and request to be relieved with immediate and salary of the rest of the notice period (2 months and 10 days). the query is-
a) on his request, if the organisation relieves him with immediate effect, what is the liability on the organisation, does the organisation have to pay salary of balance of the days (2 months 10 days)
or
b) as he is giving in writing , in a way he is resigning , does he have to pay three months salary?

employer has already served the notice and ready to pay till the next 3 months subject to the attendance of employee, and will release him after completion of the notice period.
if the employee comes in between the notice period with some fresh request, it is null and void, as the employer has already issued notice.
employee can reply the notice, and willingly can leave the employment but would not get paid for the remaining period,

glidor
thanks for they reply.
as you said " employee can reply the notice, and willingly can leave the employment but would not get paid for the remaining period".
does the employee has to pay anything in that case? i suppose no, just wanted to clarify

as the employer has already issued the notice, employee is bound to serve the notice period as per the agreement clause, in case he deny the same, he has to buy the balance notice period as per rules.
balance is between employee and employer, on any term they can mutually agree upon.

Dear friend,
You may tell the employee to submit the application that asks for the curtailment of the notice period. This application should be on and above the resignation letter. In this application, tell the employee to write that he is submitting this application out of his volition and no liabilities will be passed on to the company for the curtailment, which includes payment in lieu of underserved noticed period also. The second declaration that he should give is about withdrawal of his application. Once his request for the curtailment of the notice period is approved by the company authorities, he will not withdraw this application.
In the extreme case, company may ask the employee to bring two witnesses and these witnesses should sign the application at the HR department.
Thanks,
Dinesh Divekar

Dear Friend,
1. Since the employee is already on notice, you ask him to submit his request in writing.
2. Pay him only for the days he has worked as the company has given him notice as per contract of employment, the company's liability is limited to pay for the days he has worked.
Warm Regards
Bharat Gera
HR Consultant
9322404765

Employee is on three months notice period for exit.
IF employee wants to leave immediately, company liability is limited to payment up to period he has worked and that is all.
As a matter of fact company need not agree to early exit.

I have a different perception based on the purpose of notice on exit in the realm of employment. Here in this thread, the contract of employment between the employer and the employee is a Fixed Term Contract of Service for a period of 5 years terminable by 3 months notice on either side. Now, the exit or foreclosure of the contract before the completion of the 5 years is at the instance of the employer for which a notice of three months has been given by the employer for the obvious reason that the employer does not want to pay salary in lieu of notice. Thus the process of termination of the contract for 5 years of service stands started after 3 years by the employer through the issuance of a prior notice of 3 months. It means that the employer would continue the employee on his service only for a period of 3 months and he would be paid salary if he works or if he finds an alternative employment during the notice period, he can go out by foregoing his service for the remaining period as well as salary based on the principle of no work-no salary. Therefore, my answers to the queries are as follows:
1) If the organization relieves the employee at his request on the 20th day of the 3 month notice already issued, it need not pay him salary for the remaining 2 months and 10 days as the foreclosure of the contract of employment between them gets concluded by acting upon the request of the employee on the 20th day itself.
2) His request for early relief can not be construed as resignation so as to buy out the remaining notice period. Even in the absence of such request for early relief, any way, the organization is going to terminate his services as per the exit clause. Such a move of the employee consequent on the intention of the employer to foreclose the contract can not be treated as a new offer validating acceptance from the employer so as to compel him to make a buy-out of the remaining notice period. Similarly nor such a move can entitle the employer to compel him serve the entire notice period when the employee is prepared to forego the salary for the period. The objective behind notice of termination is primarily and predominantly to get the other party duly informed and get prepared to arrange for alternatives only and not to garner any unusual monetary gains.

We have had a similar case where, an employee was asked to leave because he was always late for his shift by 1 to 2 hours. He had been warned several times both orally as well as in writing that if he continues to be late, his services can be terminated by giving two month notice. However he did not mend his ways. We had to relieve him after 1 month with assurance of 1 more month severance pay salary, He did not inform anyone on his last working day and left the office without collecting the exit letters such as service certificate etc. are we still bound to pay him 1 month severance pay? Please advise.
Regards
Vijaya

Dear Vijaya,
If he is a regularly appointed employee, you can not simply send him out the way you mentioned. You ought to have taken formal disciplinary action against repeated misconduct of late attendance and then terminated him. If he was a Fixed term Contract employee, then your action would have been correct. If so send everything to his last-known address.


This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™