Urgent Resignation: Should Employees Be Paid for Days Worked or Reimburse for Notice Not Served?

Dear all,

I need to know what an employee's entitlements would be if they were to resign on an urgent basis without completing the full notice period. Suppose the standard notice period for a company is one month, and an employee submits their resignation on the 13th of the month, with an effective resignation date of the 20th of the month. In this scenario, should the employee be compensated for the 20 days worked, or should they reimburse the company for the 23 days not served in accordance with the notice period?

Please reply.

It depends on the company's policy regarding the notice period and buying out the notice period. If the company believes that the employee should be relieved by waiving his notice period, it will not require him to serve the notice period and will settle by paying the salary for the days worked. On the other hand, if the company strictly enforces the notice period, it will not pay for the days worked but will deduct the remaining days' salary from the employee. It is often observed that an employee on the notice period may physically be present in the office until the end of the notice period but might not be productive. In such cases, what is the rationale behind not allowing the employee to leave on the day they wish to depart?

Regards,

Madhu.T.K

Hello Saraswati,

Madhu TK is right. Also, depending on the nature of the job (if it's critical or confidential where his continued presence could hurt the company's interests) of the employee who resigned, the notice period may be waived by the company. Sometimes, his/her presence may be counter-productive (other employees may be adversely affected)—in such cases, too, the employee may be relieved earlier. Most often, such decisions are taken on a case-by-case basis.

Regards,
TS