Understanding Notice Pay, Employment Termination, and Employee Rights in the Workplace

Dear Sirs/Madam,

My question is, what is notice pay? Who is eligible for notice pay? And how can I calculate it?

Thank you.

Hi,

Notice pay is when you have resigned from the organization but you are serving the notice period in your organization. For that period, it is called Notice pay paid to you in F&F settlement. To calculate this, just multiply your one day's salary by the number of days worked.

Hope this helps.

Notice Pay - In the appointment order, the employer has to mention the notice pay requirement, i.e., if the employee resigns from their services, they have to pay 1 or 3 months' salary (1 month for staff, 3 months for managers). All employees are eligible for this.

Calculation should be based on Basic + DA.

TS. Thilak

Hi sinha_saswata

Notice pay is when you have resigned from the company and you are serving the day in the company after submitting your resignation letter without receiving the salary. You will receive the salary amount for the serving day after submitting the resignation letter, and this is called NOTICE PAY.

Those persons serving the notice period after submitting the resignation letter would be eligible for the period.

Your calculation depends on your company's policy.

Notice Pay - In the appointment order, the employer has to mention about Notice pay, i.e., if the employee resigns from his services, he has to pay 1 or 3 months' salary (Staff - 1 Month, Manager - 3 months). All employees are eligible.

I agree with the above statement.

Dear Friend,

"Notice pay" is the one that is normally payable during an employee's separation, either on his own volition or separated by the company. This clause is woven into the appointment order, and the "notice period" is mentioned. When an employee wants to separate from the company, he has to serve the company a notice in advance. Otherwise, he has to pay the notice period pay to the company (or that is adjusted against his final settlement).

When the company wants to separate an employee due to various reasons (poor performance, etc.), they also need to serve the employee the notice period mentioned in the appointment order. In case the company wants him to separate quickly, then they need to pay the notice period pay to the employee. The duration depends on the company - 15 days, 1 month, 3 months, etc.

V. Balaji

First of all, V Balaji has replied the best. I was wondering why all are stating the Notice Pay payable to the employee only in case if he resigns.

Notice pay has four in-built components:

01. If an Employee resigns with immediate effect and asks for relieving forthwith - he is required to pay the Notice Pay to the Employer.

02. If an Employee resigns and asks for relieving after the expiry of the Notice Period - he is entitled to the Notice Pay from the Employer.

03. If an Employer terminates services (owing to any valid reason) and relieves the employee immediately - the Employer is required to pay the Notice Pay to the employee forthwith.

04. If an Employer terminates services (owing to any valid reason) and relieves the employee after the expiry of the notice - the Employer is required to pay the Notice Pay to the employee after the expiry of the notice period, at monthly rests on monthly rates.

An employee can avail leave to his credit during the Notice period or can get encashment of leave as per the policy of the company/law.

There is a fifth angle to it. If either the Employee or Employer serves the "Partial Notice" and relieves early, then the liability on the part of both parties is worked out, and the set-off amount is either paid or received, as the case may be.

Dear Friend,

Notice Pay:

After confirmation of services, if either party (Employer or Employee) wishes to terminate employment, it can be done by giving one month's notice or pay in lieu thereof. The management will be within its rights to withhold the earned wages or other dues in lieu of one month's notice if you fail to provide such notice. In the event you resign from services, you shall not take any type of leave during the notice period, as active service during such period is mandatory.

Dear All,

The notice period concept has come into existence is normally for both the employer and employee to have a cushion to look for another employee and look for an employment opportunity respectively. If someone tells the employer that he wants to quit, who will look after the job performed by him/her currently? The existing group has to share the workload, apart from performing their responsibilities. They have their own priority and due to which, the work may get delayed.

Similarly, when an employer tells him/her to push off without notice period abruptly, where will that poor chap go? He needs some time to look for a job and the transition takes place smoother. This is why this concept has come. However, when both employee and employer, due to various reasons, want to quit/send out, what is the procedure to be followed is what we discuss here.

Thanks, Mr. Swaminathan - I am hailing from Madras. My phone number is 99414 60342. By the way, where (city) are you from?

V. Balaji