Navigating Final Pay: Will I Get My Full Salary and Incentives During Notice Period?

Hi all, I have been working in a recruitment firm since October 2009. I have recently resigned and am currently serving my one-month notice period from January 6th to February 6th, 2011.

During my notice period, I worked for a week as requested by my employer. However, my employer then informed me that he would handle things and only asked me to work if something important came up. I am now wondering if I will receive my full salary for the notice period, even though I was not actively working.

Additionally, I received an incentive for referring two candidates, but only half of the incentive has been paid out so far. The remaining half is supposed to be paid six months after the candidate has joined, and that period has not yet elapsed. I am seeking clarification on whether I will receive the outstanding amount of the incentive.

I have not yet discussed this matter with my employer as there is still one week remaining before the settlement. I would like to understand the correct procedure in advance.

Please advise me at your earliest convenience.

Thanks and regards, Anita

"My employer said that he will take care of the things and tell me to work if there is something important." This is not clear. If the intention of your employer is to relieve you much before finishing the notice period, except for layoff cases, the company will pay you till the relieving date only. Also, make sure that you have a written acceptance of resignation. Additionally, get your relieving date in writing.

It is not legitimate for an employer to deduct notice pay from an employee when the employee resigns and agrees to complete the notice period. However, get clarity on these aspects.

"...and half the money as per the agreement with the client is to be paid after 6 months' time after the candidate has joined." I don't think the employer is liable to pay this amount because by the time it is due, you will not be an employee.

Thank you for the immediate response. I understand the point about incentives. Regarding the notice period, my employer accepted my resignation via email and verbally confirmed that he would consider the notice period and assist in its completion. However, this agreement was only verbal. I am concerned about what happens when the notice period ends. In terms of the full and final settlement, can my employer refuse to pay my salary if he never instructed me to work?

Please respond.

You are right, Anita. As the employer did not allow you to work your notice period, I think they might adjust your available leaves (PLs) against your notice period. In full and final settlement, they normally clear the dues for your available leaves as well as the last month or any pending salary. In your case, they may pay your salary but will not pay the leave dues and will adjust them against your notice period.

However, in most companies, the rule is that you can't take any leave during your notice period, and you have to physically serve the entire notice period. I think you should discuss these aspects with your reporting manager and then with HR once, as you did not have any issues serving your notice period.

Regarding the Incentive

As per company rules, I believe you need to be an active employee of the same organization when the referred employee completes 6 months. It is also a reward for retention strategy.

Hi Anitha, I would also accept the comments from Gayathri & Consultme. However, I would like to seek clarification from you regarding your present attendance in the company. As per my knowledge, there are two things to be considered:

1. Daily having your presence (attendance) in the company but not involved in any work.
2. Not attending your duties (absence).

If your current situation is option 1, then it's the company's responsibility to pay you.

As I observe, no employer has the right to deduct wages (according to standing orders) for workdays.

Hi Join Hands Hyderabad, as mentioned, two points are correct in my case. My attendance is there, but I am not exactly doing the work as it is not asked. However, whatever updates I have, if any, I report to my employer as well.

Companies have set notice periods to hand over your responsibilities to another employee, and this can vary depending on your role. Lower-grade employees may need to serve a 15-day notice period, while senior employees might have to serve a 90-day notice period. If your notice period was 30 days and your senior releases you before the 30 days are up, it means they will adjust the remaining notice period days from your accrued leave balance.

When you resign, you are entitled to receive a Full and Final settlement calculated up to your last working day. Leaves can only be used to fulfill the notice period and cannot be encashed after resigning. For example, if you have worked in the office for 10 days after resignation, you will receive a salary for those 10 days only. Seniors may release their employees before the notice period to reduce costs.

Different organizations have various formats for incentives (monthly, quarterly, bi-yearly, and yearly). However, when providing incentives, employees should be in an active stage, meaning you cannot receive the incentive once you have resigned.

Thank you.

If you are going on a regular basis, as you used to before resigning, then you will receive your full salary. Whether you are working or not while you are in the office is a different matter. The main thing is your presence, not the work at the moment.

Secondly, regarding your incentives, there is a chance that your employer might give it to you or not. This decision is up to him. If you have any specific details about this in writing, please share it.

Thanks

Regards

You will be paid the full and final amount from your company. Don't get tense. Now, it's your responsibility to hand over the assigned tasks and train your alternative employee (the person ready to take your responsibility on behalf of you) seriously and sincerely.

Regarding the incentive part, I would like to inform you that those positions were closed in December, but the scheduled joining dates were in January and February. Please confirm this information.

Regards,
Anita

What is mentioned in your appointment or agreement letter about the incentive, as you have already received half of it? I am sure that there must be something very clear in your letter. Please share the same because if it's in writing, then only your company is liable to pay you; otherwise, it's up to them. Normally, if it's not mentioned in writing, only good people share the incentive when you are not working with them.

Thank you.

It is mentioned clearly about the incentives that as per my performance, I am eligible to receive incentives, and they will be communicated from time to time.

Regards,
Anita