Handling Salary Requests: Should We Pay an Employee Who Skipped the Notice Period?

Do we need to pay salary for a staff who did not serve the notice period and also did not give her resignation letter? However, the staff keeps on requesting her salary to be paid.

Thank you.

The basic tenet of the contract of employment is the offer and the acceptance of work for the consideration of remuneration, salary, or wages. When the employee fails to fulfill his obligation of attending to his work, he cannot expect or demand the consideration of salary/wages. This is called the principle of "no work, no wages." Therefore, an employer does not need to pay salary to an absent employee.

For which period is the staff asking for salary? Is there any period where she worked and has not been paid?

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Hi Sarala,

As per any company or industry policy, an employee needs to resign or inform the current employer that he/she is discontinuing from the services to receive his/her salary. In regards to serving a notice period, it is also very important, but this policy can be tweaked based on the mutual understanding between the company and an employee. On this basis, the salary should be released.

The follow-up question raised by our learned friend Mr. Rao is pertinent as it takes the discussion in another direction, which is also possible in the case of an absentee employee. It seems from the post that the absent employee is asking for the salary for the period she worked, while the management is under the impression that it is a case of abscondence and, as such, payment could be withheld to cover her notice period obligations. Abscondence is misconduct punishable under the Standing Orders. However, proposed or pending disciplinary action by the employer cannot curb the right of the employee to receive salary for the period already worked, nor can it dilute the duty of the employer to pay the salary.

Not necessary to release the pay as she is absconding. Send her a letter for absconding and get a reply/resignation. Deduct notice pay if any and pay the balance.

Sorry, I am not able to accept the proposal suggested by Mr. Mohankumar. Resignation is a voluntary termination of employment chosen by the employee on their own. It cannot be forced upon them just because they have been unauthorizedly absent without any intimation other than the request for disbursement of their salary for the period they worked.

Withholding the salary of an absentee employee as bait for compelling them to resign or adjusting it against their notice period obligation will contravene the provisions of Sections 5 and 7 of the Payment of Wages Act, 1936. The employer is, on the contrary, at liberty to initiate disciplinary action against the absconder and terminate them after due process of law.

Since the employee has not tendered his resignation, he is still employed until his service is terminated. His service can be terminated due to habitual absenteeism, but this must follow a legal procedure.

Steps to Terminate Employment Due to Absenteeism

First, the employer needs to ask the employee to return to work (a few times). If the employee does not respond, then issue a charge sheet, initiate a domestic inquiry, and then proceed with termination. From the situation, it seems that the employee is still in service (though absent) as he has not yet tendered his resignation.

Check my blog www.labourlawhub.com for more information on labor law-related issues.

The company will have to pay the salary to the employee if she has actually worked on the days for which she is claiming the salary. The company cannot adjust the notice period against the due salary to the employee.

As regards not resigning, if the employee has not resigned and is remaining absent, the company can initiate disciplinary action for remaining absent unauthorizedly by issuing a charge sheet and holding an inquiry.