How Do You Handle Separation Policies When Employees Take Leave After Resignation?

Dear All,

I have created a separation policy in line with the management guidelines (as we have observed many employees taking leave after giving their notice) for my company. Please find it below.

Before delving into the policy, let me explain our company's setup. Previously, we did not have an HR department, hence the absence of proper appointment letters, etc. Our current staff strength is 40-50.

Separation Policy

This policy serves as a guide for employees and the organization to understand the separation policy and its procedures.

Notice Period:

Every employee must serve a notice period before separation, regardless of whether it is specified in their appointment letter.

Employees in the Probation and Confirmed/Regular categories must give one month's notice, while those in the Training, Temporary, and Consultant categories are required to give 15 days' notice.

During the notice period, employees must be present during regular working hours. Absence will only be accepted if approved by the relevant manager and HR. If management deems the leave taken as unreasonable or unacceptable, and it affects the proper handover of responsibilities, the relieving date may be extended by 2 working days for each leave taken after the resignation date.

Settlement Procedure:

Typically, one month's salary or 30 days of salary will be retained for company security purposes. The final decision on this matter rests with the Management and HR. The final settlement may be paid either after or along with the Service/Experience certificate.

The Final Settlement, along with the Service/Experience Certificate, will be issued 10-30 days after the last working day.

While the relieving letter is not standard, if required, it will be provided in a specific format (a format has been created).

The Management expects all employees to adhere to the notice period mentioned above. In cases where the department head and management agree to a shorter notice period, it may be waived. Otherwise, the employee must work as per the notice period eligibility or receive compensation in lieu of notice as determined by Management and HR.

Prior to the last working day, the employee must submit a completed form (view form at ---) with approvals from the Department Head, Accounts, and HR. The Relieving letter, Service/Experience certificate, and Final Settlement will only be issued once the Handing over charges or Staff Settlement Form is approved.

I have encountered issues like:

1. Unfair Practice - requesting an employee to work for 2 days for taking a single day off.

2. Regarding extension days, how should payment be handled? According to my understanding, the company should pay until the last working day. However, Management states that if an employee, for example, is scheduled to be relieved on a Friday but takes leave without a proper handover, they will need to work for two extra days (Monday and Tuesday) and will only be paid for those days, not for Saturday and Sunday, as they are holidays. The company is willing to pay for the extension days but not for the weekend days since the employee has resigned.

If anyone has faced similar situations or has a policy in place, please assist me.

I would greatly appreciate a prompt response.

Thanks,

Ramya Shankar

Hi,

Nowadays, this problem is being faced by many organizations. I don't think that it is right on the part of the employer to ask the employee to work for two days to take one day off during the notice period. I feel it is better that when an employee resigns from their job, they are asked to completely hand over their charge/responsibility, etc., to the person who will be taking over the role. Failure to do so will result in their Full and Final (F&F) settlement not being cleared, and they will not be provided with an experience or relieving letter.

It is advisable to prepare a charge/responsibility handover format. On the day of their relieving, the employee should fill it out and obtain the signature of the person who will be taking over the charge/responsibility. Until it reaches the HR department, the employee will not be cleared, and they will not be provided with an experience or relieving letter.

Regards, Santosh Iyer
Email: santosh_iyer79@rediffmail.com

Mr. Santosh Iyer,

I have made a request for a 2-day extension initially, as you mentioned that it would not be approved and he would not be provided with an experience or relieving letter, etc. This policy can be seen at the end.

Nowadays, people can join any company without a relieving letter or certificate. They are enticed by the prospect of a double salary increment and are not concerned about any pending or final amounts with their current employer. They are only losing one month's salary, which is half of what they are currently earning.

Our company is a private organization. I would like to know if the employer has the right to extend like this.

Regards, Ramya Shankar

Well, the employer doesn't have the right to extend the notice period like this.

Generally, in these types of circumstances, if the employee has good relations with fellow employees, he will never go away without completing his notice period. Even if the new employer has asked him to join at the earliest, he will certainly demand at least one month so that he can hand over the charge/responsibility to the concerned person.

Many people leave their organizations because of their bosses. In such conditions, the employee will definitely not complete his notice period. The bosses are also to be held responsible for such cases.

I have seen these things in my company. If the employee is leaving the job for reasons other than being harassed by his boss, he will definitely complete his notice period.

There are certain problems for which the concerned department head has to take initiative in maintaining harmony in his department, so that these types of things don't occur.

Hope the above reply should serve your purpose to a greater extent, if not fully.

Santosh Iyer

santosh_iyer79@rediffmail.com

Dear Ramya,

If Saturday and Sunday are declared as holidays, or for that matter, any holidays, it means paid holidays. Management may get into trouble if the affected person challenges it in court. Please also check whether your company is covered under any specific Labour Act and then formulate a separation accordingly. In these matters, common sense is not enough; applicable enactments need to be considered.

Best wishes,
B. Thyagaraj 😉👍

Hi all. :D

Most staff who leave without notice or run it concurrently with the leave period have a calculated move.

It may be that they want to foretaste the other side before they formally move. Anyone who is moving to another job for a higher salary may even leave, and you cannot withhold him or her when he/she has committed themselves on the other side.

I think, with all due respect, it lies upon the management to cultivate a healthy separation policy/procedures in which the employee doesn't feel disadvantaged and walk out without notice to the disadvantage of the employer and HR left running to replace.

Many managers don't treat separations as a healthy thing for both the organization and the person. As such, if the company treats those who give notice as traitors, then others will learn and just walk out.

For example, to require someone to work for 2 days for being away for 1 day doesn't sound practical. Furthermore, I wonder if it can stand in a court of law.

Like the industry I am working for, a certificate of service is mandatory (a right of the former employee) as per the CBA, of course, upon clearing dues with the company. I guess the recovery of the notice period in pay is sufficient, which the employees normally take into account.

An employee will be bound (by his conscience) if the atmosphere of work makes him take ownership and identifies with it. That kind of person can give notice and hand over well. So, it zeroes down on our management styles.

Otherwise, I find the other aspects of the policy okay and in line with common practice.