Can company force me to serve total notice period with 1/4th salary?

Hi, I am facing a critical issue for which your suggestion would be very much helpful.

I have worked for 6.4 years at XXX, and I sent my resignation to HR and my supervisor on 22nd December 2014. They have accepted the resignation and are processing it accordingly.

According to the norms, my last date at XXX should be 7th February. Generally, the notice period is 30 days, but as I returned from onsite a few months ago, as per the policy, I have to serve 90 days after my return from onsite, which I accepted.

Now the problem begins. I was released from my current project on 22nd December 2014 (the same date when I officially resigned), and currently, I am unallocated to any project. Although I have agreed to serve the full period, my HR informed me that since I am not assigned to any project, XXX is unable to allocate me any work, and they would release me within Dec'14. However, I will only receive basic salary (which is only 1/4th of my total package) until 7th February. Additionally, I am unable to join any other company until 7th February. He mentioned that he would release me within a week, but I would remain bound to XXX until 7th February.

My question is, as I am willing to serve the total notice period, and XXX is unable to allocate me to any project, can XXX force me to serve the entire period with 1/4th salary? Furthermore, if they state that they cannot utilize me and/or do not require my services (which is the implication of being unallocated, I presume), shouldn't they release me immediately so that I can join my next employer promptly? How can the organization compel me to accept 1/4th salary for a month and a half?

You may find another thread and judgments quoted in it as useful: https://www.citehr.com/513503-notice-period-duration-pg2.html

M/s TCS should be covered by the (Name of the state) Shops and Commercial Establishment Act, and the notice period and rate of notice pay stated in the Act shall prevail, and it is the last drawn monthly payment. You may submit in writing that you are willing to service the full notice period.

After going through the thread mentioned above and another thread mentioned in it, if there are still queries, you may post again.

Hi, the organization has provided you with an appointment letter at the time of joining, and the notice period days are mentioned, which you will serve at the time of resignation. Please refer to that. Your incentive would not be considered during the notice period for the processing of your salary for those days.

Regards, Sanjay

Dear Friend,

Please go through the service conditions under which you entered into the service of TCS. You would have agreed that once you are assigned to onsite work and after your return, you have to work for at least 90 days. However, your HR insists that you should serve for 90 days after returning from on-site. The exact date of your return and the 90th day are not clear from your statement.

The HR Department considers your joining report, contract, etc., and makes decisions according to the company's rules, which you signed at the time of joining. If they cannot find a suitable project for you, they may keep you on the bench, which is likely what HR is doing.

I recommend speaking to your HR Department to resolve the issue amicably and obtain a proper relieving letter before pursuing opportunities with another organization. I am confident that TCS HR personnel are capable of deciding in accordance with the principles of natural justice and legality.

All the best,
Subba Rao Bhagavatula.

Dear Suvo,

What do the company rules say? Is it clearly mentioned there that in the event of non-allocation of any project, the company shall only pay the basic salary? If it is so, then XXX is well within its right to do so. See, the allocation of work and notice period of 90 days are two different issues. The company has not allocated any project to you because maybe there is no work order or maybe they have projects which would take longer than your notice period. Hence, they would release you, but you remain bound by their T&Cs till 7th Feb. They are paying you in any case, isn't it? Yet you may try to convince the HR to waive this condition and sacrifice the basic pay in return. All the best!

S.K.LIMAYE MBA(HRM)

It is better to get relieved immediately without any compensation, receive the relieving letter, and then join the new company. If you have resigned, how can you expect XXX to assign you any new project or task?

Please do not mention company name. We you can post your query without company name.

=>Please refer your compensation policy for Non billable period. I believe it will be only the variable pay which will get affected for non billable period. Who informed you that it will be ¼ of you salary, have your received any mail. You can ask for clarification of the same. If there any policy rolled out earlier, you will have to refer it carefully. Get email clarification from HR on what basis salary will be deducted, Ask for supporting policy which is referred for this impact. If there is any agreement which you have signed, ask them to send copy of terms and conditions.

=>Immediately raise query on your HR web portal & have communication through e mail.

=>It’s very common problem in IT industry especially service based companies; there is less than 20% of chance for engineers to getting allocated to project after resignation.

=>If you’re on permanent rolls of the company. Notice period of all major Indian IT companies is minimum 2 months in Indian. If you’re referring to notice period when you’re at Onsite, I believe it will be 1 months.

It is true that HR personnel have to follow the employer's internal policy for HR. HR is expected to advise the employer on compliance with various enactments applicable to the establishment, for which the employer personally can be held responsible. The private rules and policies of M/s XXX cannot supersede or overrule an Act, instrument of law, or statute.

The notice period cannot be more than, and notice pay can't be less than, the notice pay at monthly wages as stated in the Shops and Commercial Establishments Act of the state, standing orders (certified/model).

If you apprehend unfair tactics, walk out with proper acceptance of notice, resignation, service certificate, relieving letter, and do not accept FnF statement. Attach some questions to it in writing under proper acknowledgment and stake your claim later.

Please review the terms of the agreement you have signed and the components of your CTC. You may find two options: legal or mutual. It is advisable to schedule a session with your HR before making any professional decisions on your end.

The Terms of Service conditions and Service Conditions Policy of the company should be referred to in this case. I am sure there is a solution for your problem. Also, request not to mention the name of the company in the post.

Thanks

Dear Friend,

In your mail, there are a few points missing. They are:
I. You have not mentioned the exact number of months since you returned from onsite.
II. Were you suddenly released from your current project, or did it expire/complete?
III. Why did you resign suddenly?
IV. Have you applied and been selected by another company?
V. Have you provided the reference numbers (contact details) of your current employer?
VI. What are the exit norms of your company regarding full and final settlement?

Kindly provide answers to these queries/questions so that I can offer you a perfect solution.

Regards,

If a problem arises, you should also mention the company name. Mr. Bijay Majumdar is facing a critical issue, but you have not provided a proper answer. Yet you are saying not to mention the company. Let everyone know about TCS or whatever. It is for public awareness.

Dear Suvo,

Just to make it simple, here the HR management is trying to act a bit smart. They are looking to save the overall remuneration on you to the company (which might get them some appreciation). They (means HR) are abided to give you salary for 90 days but as you have already decided to leave the company, and it's human nature, so they are trying to save some money as you will be working idle in the mentioned notice period.

So my suggestion is that you hold a meeting with your HR head along with your Group/Project Head on the same. Inform them that you are ready to serve the complete notice period so by law they cannot do anything else. If you wish to leave the company early and join the new company within 2-3 months, you can ask them that you are ready to receive 1/4 of the salary but will not be ready to sit idle and would like to join the new company.

Regards,

Amol H. Manager - HR

Hi,

Before making any judgmental decisions, it is important to know your company's policy with regard to resignation cases and notice period as specified in the company's HR manual.

Theoretically, the notice period is calculated as the time by which the company would be able to replenish its workforce (when someone resigns) either by reallocation of work or rotation of someone else in that place. Remember that no company wants to lose its valuable manpower that it recruited after much effort and financial implications.

Now, when it comes to giving you a new project, it may not be in the company's best interest because:

One: you may have lost interest in the company (that's why you are leaving the company, they think!)

Two: after you are gone or relieved, who would carry on from where you left off or develop on the software created by you?

However, if there is a notice period of three months (90 days) and they have already given you the letter with the relieving date on it, you may contest it if everything is in order as per company rules.

Also, they cannot offer you a lesser pay package, and they cannot ask you to work on a quarter of your income and bind you to work until the 90 days are over. That's outrageous.

Before you take any solid step, please get a copy of the company's policy regarding resignation cases and notice period pay.

You can also get in touch with any previous employee who left shortly and inquire along these lines.

(P.S.: If the HR policy of any company is terrible, it's better to move on and move on fast!)

Thank you.

Hi Suvojyoti,

If the company has accepted the resignation and shared the relieving date with instructions to follow the notice period as per policy, and if you have proof in an email or writing for this, ideally HR cannot make a decision to revisit the decision and force you to exit immediately by paying you the notice pay money.

After your onsite assignment, you made a decision to find another job, but you have applied via the proper channel and intimated your interest in serving the notice period. However, normally, any appointment order will consist of a clause that gives the employer an equal opportunity to separate you from employment by providing proper justification and notice pay. So this is quite usual.

Once an employee decides to quit and management also decides to relieve, on what basis should the employer assign a project to the same person? It would be quite unwise to invest further, right? In this context, HR may have received instructions from management to end the service and find a replacement quickly. So they may pay notice pay for 3 months and the difference may pay to the new guy as notice pay buyback (incentive to join quickly).

In business, both sides (employer as well as employee) will try to manage. You were able to build a career with the organization, went onsite and got a good opportunity in another place, and decided to leave with a proper notice. However, this may not be as simple as you leaving your current company to find a replacement. The hiring exercise, training, culture fit, socialization, market salary, client pressure, etc. So they have also made a swift move.

I think you should not feel bad about this. Accept the relieving, say thanks to TCS for helping you build a career, and then pursue your new opportunity.

Wishing you the very best!

Dear Friend,

As many of my counterparts suggest, take their advice very seriously. I have gone through your query. In my opinion, one month's salary means the total package they offered you. Usually, there shall be a clause in your appointment letter in that regard. Kindly go through that. Your management cannot give only the basic wage. The definition of wages is entirely different. Kindly write to your HR stating that you are willing to serve the notice period of 90 days and that you are eligible for the total emoluments as per the clause of your appointment letter and not the basic wage.

You can also seek help from a good advocate who is well-versed in labor matters.

G.K. Manjunath