Dear Sir,
I want to solution of one question?
In my organization 90 day notice period. When employee put resign. One employee put resign . And after 1 month take a leave 22 day . His HOD approve his leave . HR Manager prepare full and final settlement after relieving . He deduct notice period recovery as well as LWP count. So i want to know they are legal aur illegal . Kindly suggest me .

From India, Gurgaon
Labour Law & Hr Consultant
Content Marketing Strategist


Dear Sam,

Every unilateral termination of the contract of employment, either on the side of the employee by way of formal resignation or discharge simpliciter by the employer has to be preceded by a notice of certain duration prementioned in the contract of employment or as per the service regulations. Failure in this regard by one party would entitle the other party to claim compensation on the basis of the amount of salary payable for the period of notice. The object behind such a clause of unilateral exit is to enable the employer to find a suitable substitute and the employee to tide over the difficulties of loss of earnings due to such an involuntary and sudden exit.
Such an exit clause may provide for the buy-out of the notice period by the employee in full or in part subject to the discretionary acceptance of the employer. Otherwise the employee has to serve the notice period and in case of his failure, the employer can deduct the same from the F&F dues or refuse to relieve him and initiate disciplinary action on the charge of unauthorised absence which can result in dismissal of the employee.

Normal industry practice is that no leave would be allowed during notice period. If formally sanctioned it cannot be treated as LOP.

In the given case, leave salary should not be recovered/ deducted if there is sufficient leave in the employee's leave account as it stands already sanctioned; only salary for the unserved notice period can be deducted.

From India, Salem

If an employee wants to take leave during the notice period, it is up to the company's policy and the agreement between the employee and the employer. If the company allows it, the leave can be taken, but it may also be considered as leave without pay (LWP) or the notice period recovery may be deducted. The specific details on how the leave and recovery would be handled would depend on the company's policies and the agreement made between the employee and the employer.

Check the leave policy in India

From India, Noida

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