An employee at Managerial level is being issued with appointment with a period of 3 years. Appointment letter consist a clause of 3 months notice period or salary either lieu of clause

Yearly Appraisal has been awarded to him from last two years along with other employees therefore he cannot be considered as probation employee

He has tendered his resignation and has served only a notice period of 20 Days.

Now his full and final settlement is to be processed. Have a query on the following

1. Notice period to be deducted will be 70 Days or it should be up to his date of expiry of appointment period?

As per my view he was aware about the notice period clause, but there was no intimation from his side to the company regarding renewal of his appointment period. Company was in process of renewal of his appointment period but in meantime he had served his resignation. Being serving at Managerial level position and had served only a notice period of 20 days, notice period of 70 days must be deducted instead of deduction of expiry of appointment period

Please provide valuable inputs on the above

From India, Pune
Dear Sandeep,
This is a Fixed-Term Contract of Employment for a period of three years only with a notice clause of 3 months on either side and provision for further extension based on the consent of either side.
Your statement that the employee tendered his resignation and only served a notice period of 20 days indicates the fact of the situation that exactly 20 days before the expiry of 3 years, he tendered resignation for whatever reasons best known to himself.
Strictly legal interpretation of the contract is that resignation even a single day's short of 3 years' service requires the total compliance of notice clause on the employee's part. But would it sound reasonable on the part of the management is the pertinent question when it is intent on the renewal of the contract further. Had the management informed of their intention to renew the contract at least while he submitted his resignation, perhaps he would have withdrawn his resignation in anticipation of his further continuance or insisted the acceptance of his resignation despite his obligation to fulfill the notice covenant in full.
Therefore, it is a decision left to the sole discretion of the management.

From India, Salem

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