Confused About Notice Period Calculation? How Should We Handle This Resignation?

In our company, one of our employees resigned on 06.07.16. He gave a resignation letter in which he mentioned working until the 15th of July. However, our management instructed him to work until the 7th of July and then leave the company. This employee has a one-month notice period, so based on his letter, he should work from the 6th of July to the 5th of August for the notice period, right? When calculating his full final settlement, should we deduct 29 days or how many? Please explain.

U. Umamaheswara Raju

In our company, one of our employees resigned on 06.07.16. He gave a resignation letter stating he would work until the 15th of July. Our management instructed him to work until the 7th of July and then leave the company. However, the employee has a one-month notice period. According to his letter, he should work from the 6th of July to the 5th of August for his notice period. When calculating his full final settlement, should we deduct 29 days or a different number? Please explain.

Dear Friend,

If your management does not want to continue with the employment of an employee in the company, please accept his resignation immediately, citing his resignation. It is advisable to promptly pay the Notice Pay amount with management approval as he has provided the necessary date, timings, and complied with the appointment terms, despite the management seeking an alternative arrangement.

In this situation, the deduction of Notice Pay does not arise.

Thanks

Handling Notice Period and Final Settlement

If the outgoing person was informed that he will be relieved on the 7th of July, this means the notice period is condoned by your management. Simply reach out to the person who has permitted his relieving on the 7th of July and request him to write on the resignation letter a remark: "Resignation accepted, please relieve him on the 7th of July."

After this, no deduction of notice pay is required. You should prepare his Full and Final (FnF) settlement based on the No Dues Certificate and relieve him with actual worked days paid, leave encashments, and any other unclaimed dues.

Regards,
RDS Yadav
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