Asso.prof.(commerce & Management)
Hr Manager
Bhartiya Akhil

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Hello, I work in a company as HR where due to COVID, business is totally down and we were paying 50% of the salary across the board. Now we can't pay that also and so have a let go few employees whose role is not required anymore. As per the organization, we were again reducing the salary payout for Aug 2020 to a lower scale due to absolute poor financial conditions. My question is if I let go of an employee whose notice period is 60 days even though we discussed and got the resignation letter from him and we do not want him to serve the notice period as we may not require his services anymore. Do we pay the salary for the next 2 months as 50% for July 2020 and 25% for Aug 2020 or pay him 100% . He also has a company's assets like a system that needs to be retrieved. Please advice
From India, Chennai
In an appointment letter, the clause of separation applies not only to employee but also to Employer as well. If an employee submits his resignation letter on his own, will company let him leave organizzation just like that? No. Either he should serve the notice period (here it is 60 days (2 months) or he should pay back salary of two months, as salary in lieu of notice period. Same condition applies to Employer.
If Employer wants to terminate the service of employee - for whatsoever reason - either Employer serve 2 months notice time or pay him 2 months salary.
Advise them, in written, to return the Company assets, before making his full payment.

From India, Aizawl
Dear Sir,
Thanks a lot for the timely advice, I had one more point in this case the F&F calculation should be on 100% of the salary or the existing reduced pay as in Aug we are again reducing it since we do not have orders in hand to manage. Please help

From India, Chennai
Whatever remuneration have you offered in the Appointment letter, same remuneration applies to their F&F settlement, on termination.
From India, Aizawl
Dear Ramananand-Shangunni,
I have different answer for you.
There are two types of employees. One is workmen under the ID Act and another is non-workmen under the ID Act.
In case of workmen under the ID Act, you can not reduce the wages / salary without following due process under section 9A.
In case of non-workmen under the ID Act, you can have understanding or agreement in given condition to that effect i.e. reduction of wages / salary and settling the final dues accordingly.

From India, Mumbai
Dear Sirs, Thank you so much for your valuable inputs. I will take it up accordingly, Regards Ramananand
From India, Chennai
I also endorse the views w.r.t. F & F on the pretext of separation, a deemed resignation in this case. Pl.let me know, in proceeding on this line, whether you are keeping the other door open, ie. will you take him/her back once normalcy restored and back to past performance levels ? Are you in a position to send him off with an assurance, in case he/she does not get engaged elsewhere and seek your nod to rejoin?

Dear friend, what's expected of you, at this juncture is, a humane approach for an unprecedented/unwanted action. After all this termination didn't emanate from any indiscipline committed by the employee. Pl.Pay him full including 2 months salary so that he is left to fend for himself in the interim. I hope no one is going to get any legal remedy at soonest desired. Hence this win-win bargain.

From India, Bangalore
Dear Sir,
Thanks you so much for the advice.
We would definitely like to take them back if situation improves infact I would also help them in finding job in another organization as and when I find any vacancy mean while. This has been told to them. I do want to have a win win situation as you have said.

From India, Chennai
Appreciate your gesture R’anandji.
From India, Bangalore
Please Login To Add Reply

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™