Navigating Resignation and Salary Revisions: Is This a Case of Unfair Labor Practices?

Hello All,

I have been working in an IT organization for the past 2 years. According to our existing HR policy, we conduct appraisals every 6 months for all employees.

Can you help solve the below issue/real problem/real case: Employee Mr. xyz joined on the 15th of Feb, 2010. According to the policy, the first six months are considered a probation period. After six months, we can revise an employee's salary, issue a confirmation letter, etc., always applicable from the new month. This means the above employee completed his probation period on the 14th of Aug, 2010. Therefore, the new salary revision depends on his performance over the last 6 months and is applicable from the 1st of Sep, 2010. We issued his new salary revision and confirmation letter. Mr. xyz was supposed to receive his new salary on the 30th of Sep, 2010.

However, Mr. xyz received a new job opportunity with another organization and resigned on the morning of the 30th of Sep, 2010. At that moment, his salary had not been credited due to an accounting issue. As per the policy, our notice period is 45 days. We accepted his resignation, and the notice period is applicable from the next day, i.e., from the 1st of Oct, 2010, for the next 45 days.

His initial CTC was 4 LPA, and the revised CTC was 6 LPA, applicable from the 1st of Sep, 2010. Due to his resignation, we stopped the salary process according to the new salary revision and paid him according to the old CTC since he resigned before his new salary acceptance. This decision was made because he may not have been willing to work with us long-term, and his salary revision was based on performance and future needs.

I have a few questions:
1) Does the notice period start from the next day after the resignation date?
2) Is the new salary applicable to Mr. xyz?
3) In the above case study:
- Have you found any instances of unfair labor practices?
- How can we handle the above situation?
- If Mr. xyz were to resign on the 2nd of Oct, 2010, can we stop his new salary revision?
4) I would appreciate your thoughts on this matter.

With Regards,
RK

Hello RK…

Following are suggestion of your questions….

1) Notice period start from the date on which he has put his resignation. i.e. date on resignation letter.(in some cases if it has been kept by dept. head for few days & then after will come to HR dept.; so in that case we have to consider date of resignation & not the date we received..)

2) If the salary is not credited in his account; you can still hold it & can pay old one.* (*but first refer your HR policy then take any decision)

3)
(a) as per my understanding.. no unfair labour Practice.

(b) you can still retain him; if he is an asset of the Org. by offering competitive Salary or any other way to make him convince that this is the best Org. in the world; it will be beneficial to both the sides... this way you can cope up with the things..

(c) if salary has already credited then 'NO'.

4) be practical & accept whatever it is... afterall this is our JOB...
so enjoy...............

- pls. reply if it useful to u.

Thanks,

Regards,

Mitesh Valera
HR Executive
Vadodara.
98249 85401.

Dear,

The unfair labor practice will occur if there is discrimination. The date on which the revision has come into effect, as per your accounting practice, is the question. You cannot choose and pick based on his resignation. If his resignation is after that, then you need to pay him the revised salary. Anyway, if he buys out the notice period, if you pay the revised salary, then he has to pay that.

With Regards, Advocates & Notaries & Legal Consultants [HR]

Email: rajanassociates@eth.net
Mobile: 9025792684.

Thank you, VS Rajan.

If the organization revised the salary of an employee from 1st Oct. (applicable from 1st Oct.) and due to unsatisfactory reasons (like salary, environment, technology, etc.), the employee resigned dated on 29th Oct., then is this revised salary applicable for him or not? We revised his salary due to our future requirements, which also depend on his performance. Based on that, he seems unsatisfied and resigned. He doesn't want to maintain a relationship with us for our future requirements, so why should we pay the revised salary?

Could you provide me with some suggestions?

With Regards,

RK