Can My Employer Terminate Me Without Pay During the Notice Period? Seeking Advice

Hi, I am currently an employee of a company. Last month, HR emailed me stating that I am on a notice period from 27 June 2013. Recently, I received another email stating, "Please note that as per the project team's intimation, your last working day with Marico is 15th July 2013, and you will be on LWP (leave without pay) from 1st August 2013."

Notice Period and Termination Clause

Referring to my appointment letter, it is clearly mentioned that, "During your service with the organization, in the event of your resignation or termination of service, either side will have to give 60 days' notice or gross monthly salary in lieu thereof."

Question on Termination and Pay

My question is, can they terminate me without giving me my pay for two months, or what steps do I need to take? Please help me out.

Please share with us the reason for termination mentioned in your email so we can advise you properly. If there is no major reason for termination, the employer is entitled to pay you the salary for 60 days as mentioned in your appointment letter, even though your last working date is prior to the last date of the notice period.

I agree with Saji's explanation. The company is bound to pay you 60 days' salary if the reason is normal. However, this can change if the reason is due to a breach of the Code of Conduct or any disciplinary action against you, or any other serious concern. Therefore, please first check the reason and let us know.

Thank you.

As per my understanding, you are in your notice period as enforced by the employer. Yes, according to the agreement, you should be paid your salary, even though your last working day falls before the end of the notice period. However, please ensure that you collect your employment papers before raising any issues. I am not sure about your level of experience, but assuming you are in the IT industry, I would suggest handling the situation amicably.

Please provide us with more details about the situation so that we can offer you better solutions.

Regards

Reasons for Notice Period

The following are the reasons they are giving to me:

The purpose of this written notice is to outline that your performance has been unsatisfactory over the past few months, as we had already informed you and given several reminders to improve your performance. However, reporting authorities have been closely monitoring your performance, and it has been found through evaluation that you have been unable to perform properly in every aspect of your position as an employee. Therefore, the client has requested a suitable replacement. Your notice period started on 27th June 2013.

Reasons for Notice

The purpose of this written notice is to outline that your performance has been unsatisfactory over the past few months, as we had already informed you and given several reminders to improve performance. However, reporting authorities have been closely monitoring your performance and have found through evaluation that you have been unable to perform properly in every aspect of your position as an employee, for which the client has asked for a suitable replacement. Your notice period started on 27th June 2013.

Since the reason mentioned is not on a disciplinary basis or breach of trust, etc., in my opinion, you should be terminated as per the employment contract, either by allowing to serve the notice period or compensating in lieu of the same. Yes, performance is an issue in employment but should be settled appropriately as per the contract.

Regards,
Suresh

Thank you for your response, Sir. They are only paying me a salary for July, and from August onwards, I will be on Leave Without Pay. This means they are not terminating me until the end of August.

Eligibility for Paid Leave in August

Could you please advise me if I am eligible for Paid Leave in August as well, as per the Lieu thereof?

Dear Soni,

Why are they putting you on leave without pay? Is this to take you as a fresh employee at a later date by just completing some formalities of a service break, or is it some other trick from the employer's side? What will you do during your leave without pay period?

If your performance is not up to the mark, why don't they terminate you completely instead of leaving you in limbo? If they are not terminating you until the end of August, it might be their trick to save a few thousand rupees (your one-month salary) and later dismiss you. In that case, I even doubt whether your employer will issue a proper service/relieving letter without making you cry or demanding something in return!

If you are confident in your skills, search for a new job.

As per your employment contract, demand notice period payment for the shortfall if they relieve you in July, or continue working until the 60-day notice period, take your salary and other benefits, and get relieved in a proper manner.

Leave without pay means a loss to you everywhere—like in PF and other retirement benefits, total annual pay receipt; it can even be considered a break in the gratuity (eligibility period) calculation, etc.

Regards,
Suresh

This is unethical as per the book knowledge. You may take legal action against the company with reference to harassment over the period of time. In this case, the company should pay you the compensation amount and ask you to leave the company with immediate effect.

Few companies ask the employee to quit with immediate effect, settle their dues for the minimum days, and hand over the respective relieving and experience letters.

Don't worry, just look out for a new job. All the best in performing well in another company to avoid the same mistake.

Regards,
Rohit