Determining the True Last Working Day for Employees: Resignation Date or Attendance?

Determining the Last Working Date for Relieved Employees

For relieved employees, what date should be considered as the last working date? Should it be as per the resignation date or as per attendance? Please explain with these examples:

1. X applied for resignation on 2/11/2014, and after the notice period, he can be relieved on 1/12/2014. However, in this case, if he stops working from 15/11/2014, should we consider his last working day as 1/12/2014 by adjusting his leaves up to 1/12/2014 instead of taking it as 15/11/2014?

2. X applied for resignation on 2/11/2014, and after the notice period, he can be relieved on 1/12/2014. In this case, if he worked until 15/12/2014, should we consider his last working day as 15/12/2014 or 1/12/2014?

Please let me know if you need further clarification or have any other questions.

The last working day is taken as per the attendance. The remaining days in his notice period can be adjusted against his PLs or other leaves as per your company's policy.

During the notice period, one is allowed to take pro-rata leave only in a judicious manner. Suppose an outgoing employee is entitled to 2 EL, 1/2 CL, and 1 SL; he can avail only 3 1/2 days of leave if he is present all days during the month. His absence beyond 3.5 days will be without pay. Only the Earned Leave balance, though to his credit and available, will be encashed but cannot be allowed to be set off with his unpaid days. The issue relates to discipline and the value proposition. When you take leave against absent days, the employee will receive undue payment of other components like DA, HRA, allowances, etc., but EL is encashable based on basic salary only—a standard HR practice at various large corporates known to be fair, ethical, and practical. How will companies conduct business if employees do not serve and wait for their successor?

Above, I think I have addressed your query. There should be clear communication provided to employees in writing and acceptance from working employees as well.

Regards,
RDS Yadav

Management Consultant and Trainer

Understanding the Last Working Day

The last working day is the final day on which an employee marks attendance or is present at work. If an employee has submitted a notice of resignation, their last working day or effective date of resignation, as stated in the notice, cannot be changed by anyone other than the employee.

Leave Policy and Notice Period

The leave policy is governed by enactments applicable to the establishment, such as the (Name of the state) Shops and Commercial Establishment Act, if the establishment falls under this Act. The Act does not specify that leave cannot be availed during the notice period; instead, it states that the employee is entitled to leave.

Leave Encashment and Policy Discretion

The rate of leave encashment shall also be as per this Act and might not be at the basic rate. It is a matter of policy and the discretion of the employer to offset any leave against the notice period. However, as per the enactment, the annual leave/EL of resigned employees is to be encashed and paid.

Determining the Last Working Day Post-Resignation

The day the employee is released post-resignation should be considered as their last working day. If the employee has requested to be relieved effective from 01.12.2014 and is actually relieved on 15.12.2014, then the last working day should be taken as 15.12.2014.

Regards

Question on Last Working Date for Relieved Employees

I have the same question but a different situation. For relieved employees, what date can be taken as the last working date, i.e., as per resignation or as per attendance? Please explain with these examples also:

1. X applied for resignation on 31/03/2017, and he would not like to serve the notice period, but he is ready to pay a salary in lieu of the notice period. What will be his last working day, 30/03/2017 or 30/04/2017? If we issue him an experience letter, will his period of employment be 30/03/2017 or 30/04/2017?

Looking forward to a helpful reply. Thank you.

Dear Sudhir,

No need to panic. Please make this very simple. Refer to the appointment letter of that employee and proceed accordingly. However, ensure that this is mentioned at the time of preparation. Alternatively, if he/she does not complete the notice period, simply deduct the payment for the gap he/she is not bridging.

Regards

Hi HRs,

I wanted to let you know that one of our employees' relieving date is scheduled for the 10th of November 2017, but management has requested to extend it to the 18th of November 2017. Could you please advise on the best way to communicate this change?

Thank you.