Navigating Notice Period Pay: How Do You Handle Leave Balances and Documentation?

Hi Friends,

Please let me know, when you are hiring a new candidate, how do you deal with notice period pay? Do they need to submit a letter from the previous company with the number of days and amount?

My second question on the same topic is: if they have any leave balance, will it be adjusted with the notice period and they get relieved? In this case, do we need to pay any notice period? If yes, how do we calculate their notice period?

Please help me out with the same.

Thanks,
Aruna

Notice Period and Standing Orders

In the absence of certified standing orders, model standing orders are applicable to the company. A notice period of more than one month is permissible only when there are certified standing orders.

In the Model Standing Orders (Bombay), the notice period for a permanent employee is one month. It is also provided that if an employee does not serve the notice period, they are liable to be sued for damages. However, in no case shall deductions be made.

In many judgments, different courts have repeatedly held that in the case of any contradiction between standing orders and an appointment letter, standing orders will prevail.

Thus, even though the appointment letter provides a notice period of more than one month, that clause is null and void in the absence of certified standing orders and is deemed to be considered as a one-month notice period.