Employee Resignation: Can He Claim Notice Pay if Relieved Immediately by Management?

Dear All,

An employee has tendered his resignation and is joining our competitor company. While he is ready to serve a one-month notice period, the management wants to relieve him immediately. In this case, does he have the right to ask for notice pay from the company for being relieved immediately?

I think you can relieve him, and he cannot ask for notice pay as he has resigned. The company is at liberty to relieve him immediately if they want.

Thanks & Regards, Avika

Dear all,

As per the conditions stated in the appointment letter, an individual is required to provide one month's notice. If the situation arises where immediate relief is necessary, the company must pay in lieu of the notice period.

Regards,
JS Malik

Hi all,

Mr. Avika is correct. Since the employee has tendered his resignation with one month's notice and the employer is no longer interested in his services, the employer is within their rights to release him from his duties immediately. The employer is not obligated to pay the notice period as the employee resigned voluntarily, and the employer did not request him to resign.

The employee does not have the right to demand the notice pay if he is relieved by the employer promptly upon receiving the resignation with the notice period. The breach of contract, in this case, lies with the employee, not the employer.

Mohan Rao Manager HR

If the management wants to get rid of the said employee immediately, then waive his notice period and relieve him immediately.

- N. K. Jagtap

If an employer has accepted the resignation from a security point of view, they should relieve the employee immediately and pay their legal dues. A receipted copy should be signed by the employee. For safety measures, you can also seek assistance from a labor officer.

Regards, CL Kasotia Asst. Mgr.-Personnel

Hi,

The notice period or notice pay concept is based on avoiding inconvenience in the assigned work, ensuring a smooth transition/handover of responsibilities, etc. This typically entails a one-month notice period. If time is not given importance, money is provided as compensation in lieu of notice.

In the situation where an employee does not wish to continue employment, they may give a one-month notice. This one month serves as the maximum time that the employee can stay. However, by giving notice, the employee can be relieved from their duties as soon as the work transition is complete, at any time following the resignation date. The employer, in turn, may choose to release the employee at any point within the month without any notice pay complications.

If an employer issues a one-month layoff notice to an employee who then promptly secures alternative employment, the employer cannot demand notice pay if the employee resigns the next day due to lack of work.

Therefore, this one-month period signifies a time frame during which one party requests an immediate departure while the other party may allow for an immediate exit or wait until the 30th day without the obligation of notice pay.

Thanks,

Geeta

Dear,

Your employee does not want to be with your organization, but your organization wants to terminate his/her services. I think you want to safeguard the employee's interest here so that he/she will not be unemployed for one month. As per the job agreement, the employee is serving the notice period; thus, it is the organization that is at fault.

In my opinion, your organization should pay one month's salary for termination or as per the job agreement.

Rupendra Chahar

It's quite interesting if one looks at the responses in terms of an employee not qualifying for a month's notice pay in certain organizations. The employee resigned and undertook to work his/her notice period, but the company wants to release him/her with immediate effect. In this regard, the company is obliged, in terms of our labor law in South Africa, to pay in lieu of notice, provided such conditions are stipulated in the contractual agreement. If there are confidentiality clauses and restraint of trade stipulations, these must be confirmed by both parties and honored.

If an employee meets with an accident during his duty and is recommended bed rest, what type of leave will it be considered? Is he eligible for the salary for those days?

Ramneet,

You will only receive a response if you post your query in a new thread. The subject under discussion is completely different, and you are interfering.

Hi Ramneet,

If an employee meets with an accident during his duty, you must immediately report it to the Factory Inspector if you are in an industry.

File an accident report with the Local office of ESI if your organization is covered under the ESI Act and ensure the employee is admitted to an ESI hospital. The ESI doctor will prescribe bed rest if necessary. The ESI office will handle the payment of wages for the prescribed bed rest period, so you don't need to make any payments. The days of bed rest will be considered sick leave without pay by the employer if you are covered under ESI. Otherwise, the employer must provide sick leave with wages as the employee had the accident during service hours, and also cover medical expenses until the employee recovers.

If the organization covers the employee under a group insurance scheme, you should report the accident to the insurance company. Ensure the employee is admitted to a hospital on the panel list with the insurance company. The insurance company will cover all wages and medical expenses.

Mohan Rao
Manager HR

Notice periods for the employer and the employee must be equal. If the employer gives a 1-month notice upon joining, the employee must also give a 1-month notice upon resigning, as per the law.

In my opinion, it is advisable to pay the salary in lieu of notice. This measure ensures that the employee cannot claim any outstanding amounts in the future, thus providing legal protection for the employer.

Failure to provide a notice period or salary in lieu may lead to potential consequences in the future.

Upendra

Hi,

I agree with Avika. If the employee has served the resignation on their own, then the company has the liberty to waive off the notice period and can relieve the employee at any time when the management wants. The company is also not liable to pay the amount of the notice period.

Dear Mohikhan,

I feel the employee can ask for one month's pay if he is relieved immediately. Had he known of such a thing, then he would have informed his new employer that he can join immediately, without losing one month's pay.

Let us look at it from another angle - had the concerned employee resigned with one day's notice, wouldn't you have recovered one month's pay? This one-month notice clause is binding on both the employer and the employee. It cannot be discretionary.

Thanks,

Regards,
Raghunath

Hi,

You need to check your appointment letter with regards to the termination of employment by the employer & Employee. In your case, although the employee has submitted his resignation and wishes to serve the notice period, the employer intends to terminate the service immediately. The employer is obligated to pay the basic component of the CTC if it is mentioned in the clause; if not, the entire salary for the month should be paid. On the other hand, if the letter states that the employment can be terminated at the discretion of the management, then there is no requirement to pay the notice period.

Regards, Karthik.I

Letter of appointment is the contractual document between the employee and the employer. What is stated in the letter of appointment has to be abided by both parties.

In this particular case, the employer has found the continuance of the employee in service after resignation as not in the interests of the organization. It is a notion and may be difficult to prove. To avoid complications, it is preferred that the employee is relieved immediately with the notice pay.

Dear [Recipient],

As per the contract of employment, an offer of resignation is made by the employee, which is accepted by the employer. Since the employee has joined a competitor company, the management is concerned that the employee may divulge sensitive information to the competitor. Therefore, they are relieving him with immediate effect to prevent any potential damages to the company. In this case, they are not required to pay for any notice period.

Thank you.

Dear Malik Ji,

As Malik Ji has explained, if in an official letter there is a one-month notice period, then you have to pay him. You can talk to him and obtain in writing that he agrees to waive his notice period after resignation, as agreed between the company and him. Then, you can release him on day one; otherwise, you have to pay him. Also, if he is not willing to comply with the company's instructions, assign him tasks that are not within his designated role. Do not grant him access to the company's system or anything that he could take without your knowledge.

For further queries, please email me at snbhrs@gmail.com.

Regards,
SNB

The employee has resigned, and as per the terms of his appointment, he has given his present employer one month's notice, i.e., he has clearly expressed his desire and willingness to honor the terms of his appointment and work during the one month's notice period he is obliged to give to his current employer.

The employer has chosen to relieve him, i.e., under the circumstances, the employer is legally and morally obliged to pay the employee one month's salary in lieu of the notice period, which the employer has decided to cut short.

Best Wishes,

Vasant Nair
HR Advisor
09717726667
vasantnair10@gmail.com

As he is ready to serve the notice period and the company does not want him to serve the notice period, the company has to pay him for the notice period within the next 2 working days from his date of release.

You need to see what he has written in the resignation letter. If he has written "relieve me at the earliest," you have no problem at all, and he can't claim the notice period.

Hi,

When looking at this problem from an HR point of view, let's consider it from a normal perspective. It is found that an employee is going to join a competitor company; therefore, there is no point in keeping him on the payroll. It is always better to provide him with one month's salary. If we accept his one-month notice, it is our own risk that he may gather more information about our company and pass it on to the competitor.

If the management agrees to hold his resignation until his notice period, it is okay. Otherwise, the management can relieve him immediately - no notice pay is to be collected or given to him.

Mr. Ramachandran,

You are partially correct. If the terms are clearly written in the appointment letter, your version is correct. If it is not spelled out, the employer has to pay the entire notice pay.

1. Please check whether the employee has given a resignation letter requesting to be relieved at the earliest. If so, you can relieve him immediately, and you are not bound to pay him any notice period pay.

2. Furthermore, if you feel that his continued employment may jeopardize your company's interests, you can also relieve him without any notice pay.

3. Additionally, since he plans to join a new company, he will likely expect a good relieving letter from you. Therefore, I believe there should be no issue in relieving him without notice pay.

Employers have to pay notice pay when terminating an employee without giving notice. When an employee resigns, where is the question of paying notice pay by the employer?

In the case of an employee resigning, the employee has to give notice or pay in lieu of notice. In this scenario, the employer is willing to relieve the employee without insisting on notice. The employee should be thankful for the early relieving without the requirement of notice pay.

Hello Everybody,

As some members have mentioned, if the notice has been submitted voluntarily by the employee, then the company can let go of the employee at any time without paying any compensation. Only if the employee is asked to leave does the compensation aspect come into play.

Regarding what is mentioned in the Appointment letter, not everything is always explicitly stated. Some things are not mentioned but carried out as per the company's operations.

For example, office timings are 9 to 6. How many people actually arrive at 9? We can, however, be certain that there are many who leave at 6 or even before. If we were to start including everything in the Appointment Letter or Handbook, it would become an endless saga. Here, we are dealing with individuals in various situations, and sometimes it has to be handled on a case-by-case basis.

Ideally, an employee should not object. However, if he/she does, then it should be handled in a manner that is justifiable to both the organization and the employee. Ultimately, the outgoing employee should understand that the rules apply equally to everyone, without any prejudice or bias whatsoever.

Thanks & Regards,
Gargi V Shetty

If the terms of the contract expressly provide for one month's notice by either side to terminate the contract, then the resignation will take effect one month from the date the resignation was tendered. Until that date, the employee is legally entitled to be in service and receive wages or salary for the notice period.

If the employee is informed that his resignation is accepted with immediate effect, contrary to the terms of the contract, that would be illegal and amount to unilateral and arbitrary termination of service. Therefore, the employee can seek legal remedy.

In this connection, I would suggest reading Punjab National Bank Vs P K Mittal-1989(74) FJR 456.

Given these circumstances, it would be legal and prudent for the employer to provide one month's salary in lieu of asking the employee not to work during the notice period, to avoid unnecessary litigation.

Sanu Soman

I think you can gain clarity from the management by including the notice period along with the Head's approval signature on the resignation letter to proceed with relieving him.

Some companies specify in the appointment letter a notice period of three months. What is your opinion on this?

Thank you all for your kind response. Can we take an undertaking letter from the employee if he is ready to get relieved in reference to his resignation? It is mutually agreed by and between the employee and employer to relieve him immediately (without mentioning any details about notice pay). Is it correct? Will it be legally binding for the employee and employer?

The appointment letter is clear that either side should give one month's notice period in case of separation or termination.

If the management is not happy with his performance, then relieve him immediately without paying for his notice period.

Regards,
Naik

Hi,

A notice period is a tool used to inform the other party of the intention to leave, enabling them to make arrangements for a replacement. Once the notice period is served, the settlement is finalized.

Upon receiving notice of intent to leave, the management should utilize this time to ensure all projects are completed or a suitable replacement is lined up. This ensures that at the end of the notice period or on the date of quitting, the settlement can be smoothly executed, and work can be seamlessly transitioned.

If the management decides to allow an employee to leave without completing the notice period, they should reconsider, as setting such a precedent could lead to difficulties in the future. Allowing employees to leave without completing notice or paying one month's wages in lieu of notice may create challenges for the management down the line.

Therefore, it is crucial for the management to carefully consider the implications of deviating from standard procedures, as it could impact the organization in the long run.

If the management deems it necessary for the employee to leave promptly, they should provide a month's notice or a month's wages in lieu of notice, taking into account various factors and conditions.

Take care.

Regards

Dear All,

In my opinion, as per the terms of the appointment letter, if a notice period is given and if he doesn't serve it, management can cut off his notice pay. Similarly, if the management doesn't want him to serve the notice period which he has agreed to serve as per the terms of the appointment letter, management should pay one month's notice pay because he will be idle for one month. Therefore, management should definitely pay his notice pay if they want him to be relieved immediately.

P.K. Mishra

Dear Avika,

I feel that as an HR practitioner, you need to have better "people orientation". Just imagine a situation where an employee resigns and wants immediate release while also being willing to surrender salary in lieu of the notice period.

In some of the earlier responses to a similar query, we have observed that employers tend to make a big issue out of it when an employee requests immediate release and is open to surrendering salary to cover the notice period shortfall. Your suggestion is far from being the right answer to the problem that has been posed.

Best Wishes, Vasant Nair

Dear Mohikhan,

Pl doesn't adopt unethical practices. The employee is ethical; he has declared where he is moving. Had he not declared, it would have been difficult for you to find out. You can restrict his access to the company's confidential information. Again, he is ready to serve one month notice as per the agreement. It is not legally and morally correct to relieve an employee without pay. If he goes to court, it will cost you much not only financially, but also from an HR and employee morale, conduct, and productivity point of view. It will send a negative message to all other employees: "If it can be done to an employee, it can be done to us also."

If one wants to terminate an employee, one needs to give a show cause notice in advance and time for him to explain his side, unless caught red-handed for doing wrong things. So, give him a notice, pay, and settle this issue.

Regards,
Raghunath

Hi all,

Even I agree with the fact that he should be paid for his one-month notice, as the management only asked him not to serve the notice when he was ready to do so. So legally, he should be paid the notice period.

Dear All,
I have posted this query last week but i didnt get any feedback. so i m posting it again.

I was working in one MNC company & resigned from that company without any notice period, even my company havent ask for notice period.i have asked my HR about settlement amount and she replied that u will get it in a months time. after 2 months i have asked about it again, on that time she said "you have to pay the notice amount to the company coz you havent serve notice period". I have sent so many massages to my head office but the company replied to me that HR person told them i was not ready for notice period, but that was not the case. The head office want the proof about it.This is my example, after somedays my collegue have resigned from that company after compileting her notice period, then also she get the letter about payment of notice period.
i want to know from all of you that what action can i take??
because i think this is the loss for the employee.

Plz send me your feedback.

Hi,

Let's make it simple: since the employee has resigned, you can relieve him immediately, pay him salary up to the day he has worked, and settle his dues accordingly. If he questions the notice period, inform him that we are neither paying nor recovering any, so it should be a win-win situation for all.

Hope this addresses your query.

Thanks,
Preeti