What's The General HR Policy If Notice Period Is Not Served?

Hi all,

I need some clarifications on the general HR policy for an organization if the notice period of one month is not served.

Let me give you a specific example:

Employee 'A' puts in his resignation on 14 November 2007. As per the clause in the company's appointment letter, the notice period to be served is one month, i.e., 30 days.

So that means that employee 'A' would be working until 13 December 2007 as his notice period states and therefore he gets paid until 13 December 2007. In this period, he would be assisting in the smooth transition of his work and responsibilities to the person who takes over his role.

Now the employee puts in a request that he wants to be released on 30 November 2007. So effectively, the notice period served is 16 days.

My question here is - Does the employee get paid until the day he works, i.e., 30 November 2007, despite not serving his notice period, or does his 14 days' salary get cut, and he gets paid until 14 November 2007 only as compensation for his notice period not served?

Please advise. Waiting in anticipation.

Regards,

Jharna

Hi,

I would like to respond to the query raised by you.

In any particular case wherein the employee is not serving the entire notice period for the time for which he/she is required to serve, then he shall get paid for the period for which he has given his service to the organization, and for the balance period, the notice period amount shall be recovered.

In your particular case, the employee has to pay back to the company the notice period amount for 14 days, the period for which he/she is not serving the company. It can either be one month gross or one month basic (as per company policy).

One has to ensure and be careful about the organization policy, i.e., the amount to be recovered, whether it is based on Basic or the entire salary for the month, and the period for which the recovery has to happen.

Hope my clarification responds to your query to some extent.

Hi all,

This is so embarrassing - every time I submit a query, I get no replies and no help despite many views by CiteHR members!! Is it only me? :roll: Or is something wrong with the kind of queries I post? :? Or am I posting them in the wrong forum?? :(

Please advise...

Waiting in anticipation,

Jharna

Hi,

Either the employee has to serve one month notice period or he has to pay one month's salary to the company. Now, if the employee works only 14 days after serving the notice period, then he needs to submit the amount for the remaining 16 days. Once the amount is received by HR, the processing will begin, and the employee will get paid for 14 days.

Thanks,
Manish

Hi Manish,

Thanks for the prompt reply!! :) I have another question in response to your answer; can we instead deduct the amount from the employee's salary? So in that case, he gets paid till 14th November 2007 and works till 30th November.

Please advise again....

Jharna

Hi,

In this scenario, as very rightly said in the previous post, the employee has to pay for the number of days he has not served the notice and would be paid for the number of days worked. In this case, he would be paid till 30th Nov; however, he has to pay the company 14 days of basic/gross salary as per the clause in the appointment letter.

Another way to handle this situation could be to deduct his 14 days' notice pay from his last month's salary during the F&F settlement.

I hope this clarifies the situation.

Regards,
Anurag

Yes, I agree with Anurag. But what will be better? Ask him to work until 30th Nov. On the last working day, he needs to submit the cheque for the remaining 13 days. Once you receive the amount, that means the final settlement from the employee has been completed. Now, you can issue the relieving letter and experience letter. After that, you can proceed with the F&F settlement.

Thanks,
Manish

Thank you so much for your assistance! This clarification is greatly appreciated. I have requested the Accounts department to deduct the necessary amount from the employee's last month's salary and only pay until 14th November 2007. I believe this approach is more favorable compared to paying the employee until 30th November 2007 and then recovering the amount owed for the 14 days not worked.

In a different scenario, an employee argued with me stating that since he did not work until 14th December 2007 (which effectively completes the one-month notice period), he is assisting the company in saving the payment due for the next month's 14 days. Therefore, he insisted on being paid until 30th November 2007, the date until which he worked.

That was quite a lengthy sentence, but I hope my point is clear. I would appreciate your guidance on this matter once again.

Despite not having a degree in HR, I hold a Bachelor's in Psychology and am continuously learning on the job. Your support is invaluable to me, and I am grateful for it.

CiteHR has been an excellent resource for newcomers like me; I have only been in my HR role for 6 months.

I am eagerly awaiting a response to my previous query. :)

Jharna

Hi,

When an employee joins any organization, he/she has to serve the notice period as decided by the company. At the time of joining and signing his appointment letter, that condition is clearly mentioned, so he has to comply with it. Your second query is about the payment option. I would suggest deducting the remaining period of the notice period not served from the employee's salary while making the F&F settlement. If that employee says that the company would benefit from not paying him for the rest of the 15 or 16 days, then you can explain the importance/relevance of the notice period to him, such as:

1) Arranging for another candidate for the same position and getting him/her trained in the same tasks by the leaving employee.

2) At the time of joining, you have agreed to the same, making it a legal and statutory compliance on his part.

Therefore, he has to follow the HR policies as designed.

I hope I have answered all your queries. You were complaining that your post doesn't get enough responses from CiteHR members, so now can I say that it's wrong. If any of our members demand any suggestions or have any queries, we are all here to help them in the best possible way.

Thank you, Ishita!! :) I really appreciate all the help I have received on CiteHR. As I have mentioned, I am learning on the job; all inputs are really valuable for me!!

It's been a great learning experience so far!! No complaints!!

Many thanks,
Jharna

Dear Jharna,

Same here. Even though I don't have a degree in HR, I have learned a lot through the internet. Now, I have discovered Cite HR. In one word, the entire HR world is here to help us out.

Ishita - Thanks for your help.

Thanks,

Manish

Dear Jharna,

Greetings!

Since you are in a profession that entails great responsibility, I understand and appreciate the criticality of the situation. You have to make the employees understand that the notice period an employee is serving is not intended to generate revenue for the company. Instead, it signifies the time required for the organization to recruit a replacement and train them for the role. This process ensures the continuity of work and prevents any disruption to the projects the departing employee was involved in due to them moving to a new job.

Furthermore, for a company that employs thousands of individuals and pays their salaries monthly, the impact of not compensating one employee for a mere 15 days is insignificant in comparison. Only then will employees truly grasp the importance and relevance of their roles and the notice period they serve. Any employee suggesting otherwise is likely attempting to mislead you to expedite their payment.

I hope this information proves helpful to you.

Best Regards,

Ag

Hi all,

Thanks for all your replies! I agree with you, Ag; I knew I was doing things in the right way but needed clarifications. You just reinforced my thinking. Thanks a lot to all you buddies on CiteHR. :)

Jharna

Hi Jharna,

Whether the employee will receive the salary till 14th November or till 30th November will depend upon the company policy. Generally, this clause is mentioned in the appointment letter regarding whether the salary will be withheld if the notice period is not served. In our company, we typically provide the salary until the last day of their work.

Thanks, Sunetra

Hey Guys,

I am working in a company that sees the coming and going of people on an almost daily basis. One of my managers has asked me to research the importance of the notice period so that even if employees leave, they at least serve the notice period. Any suggestions!!

D

Hey Guys,

I am working in HR and I am the last point of contact when an employee leaves the company. In our industry, we have a trend of people not serving their notice period. My boss has asked me to do research on the importance of the notice period. Please help with this!

D

Requesting your guidance on providing a good format for the notice period policy that needs to be submitted. I am seeking your help.

Regards,
Leo

Hi all,

I just want to ask, is it okay to give a written letter for deductions made due to not serving the proper notice period? One of our employees left the company without serving the proper notice period, and now he is asking for a written letter regarding the deductions. It has been signed by all employees in writing that they will refund their one-month salary if they do not serve the proper notice period.

Kindly advise.

Regards,
Seema