Employee Demands Extra Salary During Notice Period – How Should We Respond?

tiku_bpd
Employee Notice and Salary Policy Issue

As per our HR policy, one month's notice or one month's salary is necessary for resignation or withdrawal. According to the policy, one of our employees has been given one month's notice for withdrawal. Now, he is demanding not to attend the office and is also claiming an extra month's salary. He has served in our company for about 4 years. Due to the present crisis in our company, the management has decided to take such steps. Kindly suggest.

Regards,
Amarjit
sgondchar
As he is in the notice period, he has to serve the one-month notice period, and the company is going to pay that month's salary along with his F & F. Therefore, he has to attend the office regularly during his notice period and cannot demand an extra month's salary even though he has completed four years.
sajinaarun
Leave Policy During Notice Period

An employee cannot take leave during the notice period. If an employee is on leave during the notice period, it will be counted as a loss of pay.

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Bhavikgajjar111
Has your company mentioned the notice period clause in his appointment letter?
vikasranjan07@rediffmail.com
The employee who is going to quit the company and serve the notice period is liable to receive a full month's salary for that particular month. It is important that the employee in the notice period should not take their leave, except for emergency leave (EL). The remaining emergency leave can be utilized to work fewer days by using the emergency leave (EL).

If an employee requests to waive off their notice period, then it is at the discretion of the employer whether they allow the employee to not serve the notice period and simply quit the company. This is only possible based on the goodwill of the employer.

Thanks & Best Regards,

VIKAS
tajsateesh
Please elaborate on the 'definition' of 'withdrawal' in your HR policies. A lot regarding the options open to you depends on this. Prima facie, what you mentioned looks like the employee has been 'retrenched/laid-off' and it doesn't look like a 'resignation'—both are different.

Also, as Bhavik Gajjar mentioned, please confirm what has been stated in the Appointment Letter. The options open to the employee depend on this factor—so in a way, your hands could be tied based on this aspect.

Regards,
TS
srinithy
Leave Accumulation and Notice Period

What if an employer has 45 days of leave to his credit and intends to leave the job? Can he use those 45 days as part of one month's notice period since he has legally accrued 45 days for having worked in the organization?

Reasons for Leave Accumulation Limits

Also, let me know the reason for keeping a limit on the leave we can accumulate. Recently, my company deducted my excess leave, stating that I can't accumulate leave for more than 45 days and hence deducted the excess leave during the year-end, saying I had not claimed leave encashment on time. Is it not the company's duty to reward an employee for taking lesser leave?

Thanks and regards,
Srini
shish
Only Mr. Tajsateesh understands the matter, that the company has forced employees to resign from the job. In that case, the company has to provide one salary or compensation as per the ID Act. He is entitled to compensation, gratuity, etc.

Regards,
Shish Uniyal
sanjay.funfoods
That's true. First, you need to read the terms and conditions of your appointment letter. If your notice period is one month, then you can't demand any money for an extra month. Either you serve the one-month notice period, or if the employer wants to relieve you before the completion of the notice period by paying in lieu of the notice period.
vkokamthankar
  • Your query is not very clear. What I am assuming is: you want to remove a 4-year-old employee due to financial problems faced by your company. You want to terminate the services of the employee since he has become unaffordable to you, and you want to terminate him with the help of the termination clause in the appointment letter.
  • As per the terms of appointment, you need to give one month's notice or one month's salary as notice pay. As stated by you, the termination notice is already served, and the employee is supposed to work with you for a further period of one month. But the employee either wants to be relieved earlier or is not interested in serving the notice period.
  • Under the circumstances, one option is: since you want to get rid of an employee due to financial reasons, I am assuming that you also do not have enough work to offer to that particular employee. If you have no work to offer him and the employee wants to be relieved earlier, waive off the notice period and relieve him. You will also save some money. (Please understand here that you have offered him the notice period, but the employee doesn't want to serve the notice period, and you are waiving the notice period on his request.)
  • In case there is enough work and you want him to serve the notice period, insist on serving the notice period.
  • On second thought, why are you terminating the employee? Why are you attaching the stigma of termination to his career and resume? Instead, take him into confidence, discuss the situation with him, and persuade him to resign.
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