Confused About Termination Clause: Do I Owe Salary in Lieu if It's Not in My Contract?

My termination clause states, "Should the employer want to terminate your services, it can do so by giving 02 months' prior notice or salary in lieu. Similarly, if you need to terminate your services, you must provide a 02 months' prior notice period." The clause does not mention that the employee needs to pay salary in lieu. Do I still need to pay for 01 month if I am giving only one month's notice period, which my Head of Department has accepted with a signature? Is it understood by default under labor law that the employee needs to pay "salary in lieu" even if it is not specified in the employment contract? Please reply urgently; I am approaching the end of the one-month mark. Thank you.

The above answer appears correct to me. Of course, the drafting of the termination clause could have avoided ambiguity. However, when interpreting a whole clause, we should read its various parts together to extract its intended meaning. It is important to take into account the words "similarly" and "and do so" occurring in the clause. This implication is suggested in Nravimsr's reply.

Regards,

Clarification on Termination Clauses

No ambiguity. It is common in all appointment letters. Only the employer has the right to terminate you by giving payment in lieu of the notice period, but not the employee. However, it depends on the discretion of the employer to accept the payment in lieu of the notice period from the employee.

Regards,
Pon

As per the appointment order, one month's salary is due to the employer for the shortfall in the notice period. However, the employer has the discretion to waive it if he feels so—it is, of course, not the right of the employee to claim. Under these conditions, I suggest the following:

i) In case you are having a smooth relationship with your immediate boss, you can raise the topic with him, and he shall advise you appropriately.

ii) In case the relations were far from smooth, you can ask the office to provide you with a "No due certificate form" which you will have to get endorsed from all relevant departments. (Generally, when an employee resigns, he is automatically provided with this form prior to his release). If HR or Accounts mention one month's salary as due, pay it coolly and leave gracefully. If there is some due from the organization to the employee, you may authorize them to deduct the due from it.

Regards,
Dr. T. Thomas

Termination Notice and Salary in Lieu

The employer can terminate the employee by giving notice of 1, 2, or 3 months or salary in lieu as per the appointment order. It is at the employer's discretion whether to give notice or pay the salary and relieve the employee immediately.

Similarly, the employee can also give notice of resignation or pay salary and leave the job based on personal reasons in the normal course.

If the employer wants to send out any employee immediately, they may pay the salary and relieve the candidate for various reasons immediately.

Similarly, if the employer wants to search for a suitable employee and thinks that the work will suffer if they relieve the existing employee immediately, then they may give notice.

All these decisions are based on mutual interests.