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Hi, I have a query regarding notice period. When an employee resigns, notice period will start from the date of resignation. In that case, does the company have freedom to award termination letter for a valid reason?
Kindly guide.

From India, Pune

Yes If there is a valid reason then there is no question. But valid reasons have to be justified and is to put forward professionally . For ex if you have not issued a Poor performance Report to him in his regular job period (assuming the employee as a poor performar) & suddenly you are saying we are terminating you on the basis of performance so its not justified . It is not a question about legality but about the approach . That means Management is expected to be mature , professional & unbiased with the situation.
But if there is a case where the person is engaged / is dealt in the the theft (Eg Data Theft) or is a element in Anti Organisational Activities and if there is a proof for this then you can terminate the person .

From India, Pune

Yes the company can issue a Termination letter for the resigned employees with a valid reason subject to concern that the the reason must be in detail and with strong reasons to terminate ...

From India, Madras
Yes off course company reservers the right to terminate any employee as the signed employement contract but offcourse it should be a valid reason.
If the employee is serving his/her notice period also they are still on the company's payroll and when the employee is on company pay rolls he/she will be abide by the company rules and regulations.
Best of Luck
Aman Khan.

From India, Hyderabad

There can be two types of Notice Period 1. Company has given one month's notice to an employee, 2. employee has given one month notice period. In first case if company wants to terminate the employee say 15 days after issuing the notice period, it can do that with valid reason. But in second case where employee has given and willing to serve the full notice period and in such case company wants to terminate the employee, then company should pay for notice period for remaining days from the date it wants to remove the employee till last day of the notice period.

From India, Mumbai
Dear All,
Thanks for the responce.
Actual case is, Employee put up his resignation. As per the company rule, the notice period is 3 months. Hence, employee was ready to pay the notice period amount. But, since the company needs his services for three months for proper handover, notice period was made compulsory and rejected the request of accepting the notice period amount.
Accordingly, the departing employee feels very demotivated. Hence, the work quality and quantity got disturbed. Resulting, some loss was faced by the company.
Considering the responces received, a company can award the termination letter stating the above reason to the departing employee.
Hope the action is a valid one.
Awaiting for the responce.
Thanks and Regards
Aun M V

From India, Pune

Dear Mr. Arun,
If you have any clause in the appointment letter stating, that an employee should serve "3 months notice or PAY". Then you have to accept the pay and you have to take care of the situation.
If the clause is not mentioned in the appointment letter then you can advice him to stay back for 3 months.
If the employee want to quit immediately, then the management should decide whether to keep the candidate or relieving them.
If the employee received any performance award or anything similar to that then you can advice them properly to take the action. If you take immediate action like termination then there may be a chance to create problems in the present environment. The co-worker won't accept such decisions.
So before taking any decision, think about Organization culture and environment. Any decision, which is not affect the environment pl. proceed.

From India, Hyderabad

For the reasons specified in your post, you can not terminate him. It will amont to vindictiveness and if goes to court, he will get very good compensation from you.for spoiling his career
He has given his paper.
He was willing to pay for the notice period
The clause always reads "shall give three months notice or pay three months salary in lieu of notice pay. The option here is for the employee and not for the employer. You must facilitate his handing over at the earliest as desired by him

From India, Chennai
Joseph J

Dear Arun,
How you will treat this employee will also signal and communicate with all other employees.
The right thing to have done was to understand that severance mustn't be vindictive and seen by the organisation as that.
Severance must be treated with dignity, care and sensitivity.
You may either continue to keep the person on rolls (thus ensuring that he is available to you for critical info) for his notice period and continue to pay his salary without his needing to come to office daily(and thus be a source of de motivation for all)
Pay him his salary in lieu and terminate with immediate effect .
The whole aim of HR, and the effectiveness of our function is to be proactive and ensure the org. doesn't get into messy/sticky situations.
also that employees feel cared for and wanted not only when we hire them, but also when we let go of them for whatever reason.
Am sure you have the skill/ability to handle the situation with elan.
best of luck and God bless.

From India, Kochi

Dear Arun,
I agree with T.Sivasankaran and you need to sit with concern employee & convience him for hended over his responsibilities & charges to concern person, then only he can leave.
And here starts real role of HR.

From India, Mumbai
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