Dear Friends,
In our company, there is a rule of a 3-month notice period or salary in lieu thereof. I have a query: if an employee resigns, giving 3 months' notice and is willing to be relieved after 3 months, and the company decides to relieve the employee immediately, is the company required to pay the salary of 3 months or not, considering the employee initiated the resignation process?
Please provide the relevant law on this matter.
Regards,
Sanjiv Sharma
From France, Courbevoie
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11In our company, there is a rule of a 3-month notice period or salary in lieu thereof. I have a query: if an employee resigns, giving 3 months' notice and is willing to be relieved after 3 months, and the company decides to relieve the employee immediately, is the company required to pay the salary of 3 months or not, considering the employee initiated the resignation process?
Please provide the relevant law on this matter.
Regards,
Sanjiv Sharma
From France, Courbevoie
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Sanjiv,
As per my information, there is no law for this beyond the organization's standing orders or policies. If an employee accepts the appointment letter mentioning the clause of the notice period, he/she is liable to pay the salary for the period mentioned in the letter if they leave the company without notice. However, the company would only be liable to pay if it has been mentioned in the letter previously by the employer. The employee can ask for compensation of three or whatever months' salary in lieu of the notice period only if there is a notice period clause put forth by the company as well. The rest depends on the company's policies.
VK
From India, Indore
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As per my information, there is no law for this beyond the organization's standing orders or policies. If an employee accepts the appointment letter mentioning the clause of the notice period, he/she is liable to pay the salary for the period mentioned in the letter if they leave the company without notice. However, the company would only be liable to pay if it has been mentioned in the letter previously by the employer. The employee can ask for compensation of three or whatever months' salary in lieu of the notice period only if there is a notice period clause put forth by the company as well. The rest depends on the company's policies.
VK
From India, Indore
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1. With three months' notice, the purpose is that the employer's work shall not suffer.
2. Resign by paying three months' notice pay. The purpose is that the employer is compensated by the employee for non-completion of work.
3. Terminate with three months' notice. The employee is given time to search for an alternative job.
4. Terminate with three months' notice pay. The employee is compensated for the hardship that he would undergo until he finds a job.
Now, the question you have does not fall under any of these categories. The employee resigns, and the hardship will be for the employer. The employer is prepared to face the hardship and relieves the employee immediately. Therefore, the employee cannot demand the notice pay as the employer is not terminating him. Payment by the employer only occurs when the cause of action is initiated by the employer.
Am I clarifying?
Siva
From India, Chennai
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2. Resign by paying three months' notice pay. The purpose is that the employer is compensated by the employee for non-completion of work.
3. Terminate with three months' notice. The employee is given time to search for an alternative job.
4. Terminate with three months' notice pay. The employee is compensated for the hardship that he would undergo until he finds a job.
Now, the question you have does not fall under any of these categories. The employee resigns, and the hardship will be for the employer. The employer is prepared to face the hardship and relieves the employee immediately. Therefore, the employee cannot demand the notice pay as the employer is not terminating him. Payment by the employer only occurs when the cause of action is initiated by the employer.
Am I clarifying?
Siva
From India, Chennai
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Dear Shiva, Will it not make any difference if the employees is will to work for whole of the notice period as agreed. Regards, Sanjiv
From France, Courbevoie
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From France, Courbevoie
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Hi Sanjiv,
If you talk about ethics and if your organization is a firm believer in values, it is your organization's responsibility to pay the amount for the notice period which is being reduced due to business or any other requirement, despite the fact that the employee is willing to serve the complete notice period.
Thanks.
Best wishes,
Rajiv Naithani
From India, Lucknow
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If you talk about ethics and if your organization is a firm believer in values, it is your organization's responsibility to pay the amount for the notice period which is being reduced due to business or any other requirement, despite the fact that the employee is willing to serve the complete notice period.
Thanks.
Best wishes,
Rajiv Naithani
From India, Lucknow
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See, guys, the principle governing the matter is the appointment letter, which is basically the instrument of agreement between the employer and the employee. According to it, if an employee wishes to leave the organization, he/she has to serve a 3-month notice period or surrender 3 months' pay in lieu of notice and seek release accordingly (provided handing over charges, etc., are fulfilled) and vice versa.
From India, Hyderabad
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From India, Hyderabad
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Dear Sanjiv,
An employee has tendered his resignation and has shown his willingness to serve the notice period, but the organization has decided to relieve him on an immediate basis. In this case, the organization is liable to pay compensation in lieu of the notice period. This ruling is based on a judgment given by the high court on the same matter.
Thanks,
Amit Gera
From India, New Delhi
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An employee has tendered his resignation and has shown his willingness to serve the notice period, but the organization has decided to relieve him on an immediate basis. In this case, the organization is liable to pay compensation in lieu of the notice period. This ruling is based on a judgment given by the high court on the same matter.
Thanks,
Amit Gera
From India, New Delhi
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Hi Amit,
Is there any judgment on this subject? I would like to have the reference, please, since I have presented a different view on this and have been following this for a long time. Could you kindly provide the reference?
Thanks in advance,
Siva
From India, Chennai
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Is there any judgment on this subject? I would like to have the reference, please, since I have presented a different view on this and have been following this for a long time. Could you kindly provide the reference?
Thanks in advance,
Siva
From India, Chennai
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Hi,
In the present-day situation, the trouble of interpreting the term will not arise as it is very clear in dealing with such situations. The notice period is one of the conditions for getting a job. If the employee is given an advance notice of three months, he has to work for that period or compensate for the shortage of days through payment. However, in the interest of the organization/establishment, it would be better to retain the employee until his time of leaving as per the notice period so that the firm can make alternative arrangements to substitute the person with an equally qualified and experienced one. But if the employee desires to be relieved earlier by making compensation for the shortage of the notice period, it would be better to release the person at the earliest as his/her presence in the organization/establishment will not contribute anything positive.
In the engagement letter (or in the contract) itself, the conditions of service should be clearly stated so that any such eventualities are dealt with in the contract.
Bye
From Brazil, Maceió
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In the present-day situation, the trouble of interpreting the term will not arise as it is very clear in dealing with such situations. The notice period is one of the conditions for getting a job. If the employee is given an advance notice of three months, he has to work for that period or compensate for the shortage of days through payment. However, in the interest of the organization/establishment, it would be better to retain the employee until his time of leaving as per the notice period so that the firm can make alternative arrangements to substitute the person with an equally qualified and experienced one. But if the employee desires to be relieved earlier by making compensation for the shortage of the notice period, it would be better to release the person at the earliest as his/her presence in the organization/establishment will not contribute anything positive.
In the engagement letter (or in the contract) itself, the conditions of service should be clearly stated so that any such eventualities are dealt with in the contract.
Bye
From Brazil, Maceió
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Hi,
I had a very good opportunity with Y Company, and the current company is a good one but full of false promises. I have been excellent at my work for the last six months and waiting patiently for a chance, which is in the near future (1 year). Meanwhile, I got a job in the Y Company.
Now, my manager is not ready to relieve me immediately; I have a notice period of one month!! I had discussions with my manager and his seniors for a week, and he stopped me from sending a resignation mail for 10 days, and ultimately I did it. Now Y Company wants me to join ASAP.
I do not want to lose this opportunity, and at the same time, I do not want to be unprofessional to the old company.
Unfortunately, I fell sick and did not attend the office, and they started suspecting me that I am attending the new company. They did not even give my last month's salary, saying that it would be done in the final settlement.
My new company is ready to accept me with the resignation acceptance letter, which I already have.
I am running out of money now, but I am worried about the future if I join the new company without a relieving letter. Please advise.
If I join the new company and get back to the old company for my April's salary, which I worked, can I get it? I know it is absconding, but I worked for one complete month but have not been provided with the salary!!! Please reply ASAP.
He has sent some people from the company to my home to check whether I am going to Y Company all these days. My parents told them that I was ill for the last 10 days, which is the truth!! Still, they do not believe me. They are making my life a living hell.
Hi, thanks for your advice.
Now the management says that only if I serve my entire notice period, I would get my relieving letter and final settlement. I told him that I am ready to go for a buyout, but he says that it would happen only when the parent company agrees I can do so. He is very adamant!!
What to do? I would never get such opportunities as such. Please reply ASAP!
From India, Bangalore
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I had a very good opportunity with Y Company, and the current company is a good one but full of false promises. I have been excellent at my work for the last six months and waiting patiently for a chance, which is in the near future (1 year). Meanwhile, I got a job in the Y Company.
Now, my manager is not ready to relieve me immediately; I have a notice period of one month!! I had discussions with my manager and his seniors for a week, and he stopped me from sending a resignation mail for 10 days, and ultimately I did it. Now Y Company wants me to join ASAP.
I do not want to lose this opportunity, and at the same time, I do not want to be unprofessional to the old company.
Unfortunately, I fell sick and did not attend the office, and they started suspecting me that I am attending the new company. They did not even give my last month's salary, saying that it would be done in the final settlement.
My new company is ready to accept me with the resignation acceptance letter, which I already have.
I am running out of money now, but I am worried about the future if I join the new company without a relieving letter. Please advise.
If I join the new company and get back to the old company for my April's salary, which I worked, can I get it? I know it is absconding, but I worked for one complete month but have not been provided with the salary!!! Please reply ASAP.
He has sent some people from the company to my home to check whether I am going to Y Company all these days. My parents told them that I was ill for the last 10 days, which is the truth!! Still, they do not believe me. They are making my life a living hell.
Hi, thanks for your advice.
Now the management says that only if I serve my entire notice period, I would get my relieving letter and final settlement. I told him that I am ready to go for a buyout, but he says that it would happen only when the parent company agrees I can do so. He is very adamant!!
What to do? I would never get such opportunities as such. Please reply ASAP!
From India, Bangalore
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I believe that the version of Amit Gera is correct; however, the terms specified in the agreement between the employee and the employer should be the deciding document in this regard.
Muhammad Qasim
Peshawar, Pakistan
From Pakistan, Lahore
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Muhammad Qasim
Peshawar, Pakistan
From Pakistan, Lahore
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Hi Amit,
Is there any judgment on this subject? I would like to have the reference, please, since I have presented a different view on this and have been following this for a long time. Can you kindly provide the reference, please?
My email is jdhdel@yahoo.com.
Thanks in advance.
Vinod
From India, Delhi
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Is there any judgment on this subject? I would like to have the reference, please, since I have presented a different view on this and have been following this for a long time. Can you kindly provide the reference, please?
My email is jdhdel@yahoo.com.
Thanks in advance.
Vinod
From India, Delhi
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