Notice Pay Confusion: Do Employers and Employees Owe After One Year?

Notice Pay Policy Clarification

If an employee has completed one year of service, the employer is required to pay one year's notice pay in lieu of notice. If the employee has not completed one year, there is no obligation for the employer to pay notice pay.

Conversely, if an employee resigns after completing one year of service, they must pay one month's notice pay in lieu of notice. If the employee has not completed one year of service, they are not liable to pay notice pay. Please clarify if this understanding is correct.

Regards.

When an employee has not completed one year of service and resigns, can the company deduct one month's notice pay in lieu of notice? Please clarify.

Dear Asit,

Firstly, you need to word your sentences in a way that is comprehensible. If you are not capable of constructing big sentences, please make small sentences. You will find many responses to your query only when people can comprehend your question. Don't mind, but rephrase your query and then post it again.

Dear Asit,

Firstly, you need to word your sentences in a way that is comprehensible. If you are not capable of constructing long sentences, please make them shorter. You will receive many responses to your query only when people can understand it. Don't mind, but rephrase your query and then post it again.

Project Completion and Benefits

Dear Sir, regarding a project at a company, I have completed 2 years of service. However, I have not received any appointment letter. The company has provided the following benefits upon my release:
- Two years of retrenchment benefit, i.e., 15 * 2 * Daily Basic Rate
- One month of Notice Pay, i.e., 26 * Daily Basic Rate.

Resignation and Notice Pay

For another project that I have joined, I did not receive an appointment letter. My date of joining was 1.2.2013, and now I would like to resign. Will the company deduct one month's notice pay from my salary?

Thank you.

They may deduct your one-month salary, but since there is no offer letter, they may not deduct either. That varies from company to company.

When an employee joins an organization, the company provides an offer letter, appointment letter, or both, to its employees. In that letter, the employer mentions the service obligations of both sides, which are accepted by the employee by signing a copy of it.

In your case, you mentioned that your employer didn't give you any appointment letter. This means there are no obligations towards both sides. If you leave the company, they may not provide you with anything, and you also cannot ask them for the same as there is no written statement for that. Similarly, you are not liable to give the notice period or notice pay, and they cannot deduct from your salary. If they do, you can inform them that there is no such service condition, and if they persist, you can lodge a complaint against them.

I hope your doubts are clarified.

Kind regards,
Regards

Dear friends, I am from a company in the advertising sector. I joined this organization in January 2012 and resigned on November 23, 2012. My appointment letter states that I need to provide a one-month notice period or payment in lieu of the same. My probation period was for six months, and I am now a permanent employee. I am offering them my November month's salary to buy out my notice period. Is it okay to do the same? Help will be appreciated. Regards.

As mentioned in your query, you resigned effective 23-11-2013, which means that you have a salary for 23 days with them. However, as per your appointment letter, you are required to provide 1 month (30 days) notice or salary in lieu of it. Therefore, it is possible that they may ask you to serve an additional 7 days or provide salary in lieu of notice.

Thank you.

Regards