Navigating Employee Resignation During Suspension: What Are Your Options?

Seeking Guidance on Employee Resignation and Suspension

I need your suggestions on this case: From the time a project manager joined an IT company, continuous issues were reported related to his "late comings, most absenteeism, not taking responsibility, and misconduct/misguiding the firm/team members." Since he joined, several warning emails were sent to him by HR, and he replied assuring improvements. He is still on his probation (6 months not completed), but there have been no improvements on the above issues. Even stakeholders have clearly mentioned discontinuing his service. The company has decided to suspend him due to poor performance. He has submitted his resignation and asked to serve a 3-month notice, but he is not eligible for a 3-month notice period. Also, HR has accepted the resignation. What to do now? Please guide... Is there any notice period for him since he is suspended? What can a small company do in such a case?

Thanks,
MSR

Notice period can't be dictated by an employee, but by the organization and is usually defined in the HR Manual. Follow the HR Manual, and you'll know how to proceed.

Suspension and Resignation

On the suspension - the resignation is a formality for the employee to save face. There is no notice period during the suspension of service. For a company like yours, it's best to accept his resignation with immediate effect and issue a relieving letter that mentions he was being suspended for reasons of attendance, timings, etc. Since he tendered his resignation, it has been accepted with immediate effect, and he's relieved of his duties.

A lot of other posters will claim that we need to study his reasons for coming late and counsel something on similar lines, but that's a moot point - the employee was warned multiple times, and if he hasn't changed yet, he never will - it's easier to let him go now and set an example of discipline.

Hope this helps.

Best regards

Thank you for such feedback, but is there anything more to do with the notice period? The employee is forcing us to give notice. Secondly, how should we handle his FNF? Third, in his appointment letter, a 45-day notice period was mentioned during probation. Is this applicable to him?

Best Regards

Handling Employee Resignation During Suspension

Technically, his suspension needs to be completed, and he needs to be reinstated before he can submit his resignation. In this case, I would recommend tabling his suspension, accepting his resignation (with approval from the head of HR/director or company promoter as a special exemption), and then requesting the employee to serve his notice period before exiting.

If you (or your firm) decide to terminate him, given that you have valid reasons to do so, please return his original resignation and send him a letter stating that he has been terminated due to non-performance.

I hope this guidance is helpful.

Regards,
MSR

Okay, but in this case, HR has already accepted his resignation and told him not to come WEF tomorrow onwards. Should HR call him to hand over the termination letter and his FNF settlements (salary)?

Issuing a Termination Letter After Resignation Acceptance

Once the resignation is accepted by HR, how can you issue a termination letter after that? Please prepare his full and final settlement and relieve him.

He doesn't have to serve a notice period. If his resignation has been accepted with 'immediate effect', then there's no need for a notice period.

I appreciate your valuable comments. But to make it simple, should I prepare his FNF and relieving letter? Also, his resignation was accepted normally and not with immediate effect, but in emails, it is clearly mentioned that we cannot continue with him anymore.

So, does HR have to pay him his current month's salary and 45 days' notice salary as well? Thank you.

Immediate Employee Relief and Notice Period Clarification

The employer can relieve the employee with immediate effect if desired. In such cases, the employer is not required to pay the notice period salary for the period the employee has not worked but has been relieved. The full and final settlement should include the salary up to the employee's last working day. I hope this clarifies any doubts you may have.

Regards,

In my opinion, there is no need for him to serve the notice period since his resignation letter has been accepted. Provide him with the relieving letter and settle his dues only.

In my opinion, you may seek special approval from your Head of HR or higher-ups to relieve him immediately. Additionally, please review his appointment order clause to check whether he is required to serve the full notice period or if management can opt to pay 45 days' notice pay.

Alternatively, if he is eligible for leave during the probation period and there is a leave balance, you can adjust it in the notice period and relieve him with prior approval from the authorized person.

Regards,
Balaji