Can We Ask an Export Manager to Leave Immediately Without Compensation?

Hi all, In my company, a higher-position employee (Export Manager) has resigned. He is ready to work for 2 months as a notice period, but we don't want him to work for 2 months. Can we ask him to leave immediately? Do we have to pay him compensation for that? Please reply. Waiting for your response!

Regards, Trupti

The same kind of situation happened in our company recently, and our management decided to terminate one of our senior managers. According to management instructions, the company paid two months' salary (as per company policy) and asked him to leave the company immediately. However, it all depends on your company policy.

According to humanitarian grounds, the company should pay some amount to terminated employees since they cannot get a job the next day or immediately. This amount can help them sustain themselves to some extent.

In my opinion, since the employee has resigned on his own and your management does not want him to serve the notice period, you can relieve him with immediate effect without any notice pay. He would be entitled to notice payment only if you had terminated him (on any other grounds except for disciplinary action). Also, the final decision should be taken according to your company's policy in this regard.

Regards,
Jyoti

First of all, we have to consider the reason for resignation. If it is voluntary on his part, there is no need to pay compensation. However, if it is initiated by the company, he must serve the notice period, or we can terminate him on a discretionary basis.

Please think again about your post. Would your response have been the same if this were your own case and you were given a notice to the company? How would you feel if, in good faith and compliance with company rules, enabling the company to find a replacement in time, you submitted a notice of resignation well in advance, two months before?

Then, because of your notice, the company terminates you the next day, with immediate effect, without any compensation or benefits.

It is easy to get carried away with the feeling of "ruling" the employee, punishing them, being insensitive, and committing illegal acts since one knows the management will support these actions. If giving such an opinion is out of ignorance, then it can be excused; if it is out of habit and conviction, then it is unpardonable.

Empathy in HR Decisions

The first thing an HR professional should be taught is empathy, placing oneself in the shoes of others. This enables making the right decision every time.

Regards.

Dear Raj Kumar, What I had written was my opinion, which I still think is in the benefit of both the employee and employer. Taking into consideration the fact that the employee has resigned of his own accord, we can easily conclude that he probably has secured a job elsewhere. The decision to relieve him early is, in fact, in the employee's favor, as he can join the other company sooner.

In my own experience, I have observed that after employees resign, their motivation and efficiency levels significantly decrease since work becomes a mere formality to complete (perhaps the reason why the management did not want the employee to serve the notice period). Therefore, it would be against the company's interests to retain the employee for another two months.

I have personally encountered a similar situation where, although willing to serve the notice period, I realized I could not maintain the same level of hard work. After discussing with management, I chose to be relieved early.

If employees expect fairness from management, they must also act fairly.

Regards, Jyoti

Notice Period and Employee Exit Strategy

As the resigning employee has agreed to serve a 2-month notice period, he must have either foreseen the notice period and delayed joining the new company or will be utilizing the notice period to search for a new job.

The notice period of 2 months in this case, as I understand, was mutually agreed upon as per the employment contract from both sides. The employee had initiated the notice of resignation, and he is willing to remain for 2 months. This period can be taken as the time to recruit a replacement or train the replacement candidate.

The company is also committed to a 2-month notice period for the employee. If planning to relieve him with immediate effect, he should be paid the salary in lieu of the notice period along with other benefits of F&F Settlement.

The exit is the most sensitive part of HR, and if dealt with utmost care, the departing employees will move out with a good impression of your company.

Any decisions to exploit the rights of departing employees will not only invite troubles but also tarnish the image of the company as an "employer" in the market.

The ball is in your court; decide and act!

Regards,
Sriram

*Understand from your thread that as per your employment contract, the notice period is 2 months from both sides (Employee and Employer).

Raj Kumar's and Sriram's responses should be the guiding light for your next step.

Coming to Jyoti's response, I think Sriram has given a suitable reply to her view. Like Raj Kumar mentioned, 'Empathy' is the key for any HR person—not just in talk but also in practice.

What Jyoti mentioned—"we can very easily conclude that he probably has got a job somewhere else. The decision to relieve him early is in fact in the employee's favor also, and he can join the other company early"—could be correct, but I think she missed another point. When the employee has agreed to serve the full notice period, doesn't that also mean that he 'may not be able to join earlier at the new company'—for whatever reasons? When someone resigns, he/she obviously has a better opportunity both in terms of career advancement and salary. So why would this person leave the chance to begin to earn a higher salary earlier by serving the full notice period?

Sriram's words—"will tarnish the image of the company as an 'employer' in the market"—are very true. I have seen it happen with one of our clients who just took advantage of the rule-book—despite advice to the contrary—and later got so much notoriety that they had to change the company name to avoid any reference to their past practices.

And Trupti—maybe it's time for your company to think of reviewing the rules governing the notice period.

Regards,
TS

Dear TS and Sriram, thanks for providing perfectly legal and right solutions, as well as useful insights to all.

Dear Trupti, I hope you have got your answers now—whether or not they align with your management's policy or whether you are in a position to get them implemented is a different matter; but I am happy that you now know what is right!

Dear Jyoti, thanks for clarifying your stance.

Let us not assume that it is for the benefit of the employee. The poor guy must have considered the notice period and, with great persuasion, must have had the joining date deferred by more than two months. Whatever it is, let us not forget that he has complied with the policy.

Shouldn't your management (if they do not want to keep him any longer) also comply with the policy by giving him a two months' notice?

Now, the question is, you don't want his presence at all! Therefore, should you not give him two months' notice pay and ask him to leave immediately? In such a situation, it is irrelevant whether he has given any notice or not.

If you take cognizance of his notice, then you should retain him for two months. There is no HR knowledge involved here; it is just a matter of fairness and compliance with the agreement. Please consult with any lawyer friend if you find this incredible.

Else, what is the purpose of notice by either side? Let an employee give notice, and you terminate his service immediately? Is it not? I hope you understand what is implied here.

The fact that you had been on the receiving side on earlier occasions does not change this. It is more reason for you to be more understanding. In any case, one should always keep on learning new things/facts and growing; and that is the purpose of this site.

Warm regards.