Notice Period Dilemma: Can I Still Get Paid for 2 Months if HR Releases Me Early?

Hi,

In my current company, the notice period is 2 months. I am in search of better career prospects. If I submit my resignation and state that I am willing to serve the entire notice period, but the company's HR informs me that they are willing to release me earlier, am I still eligible for the 2 months' salary?

Please clarify.

Thanks,
Krish

No, as the notice period is used to allow the company to search for a replacement. Your salary amount is the replacement cost if you do not serve this period. In case there is no bond amount, the salary paid will be treated as compensation. Read this Things To Remember While Drafting A Valid Employment Contract.

To further clarify, you will not receive the salary, but the company may sue you and get the two-month salary amount as compensation.

If you have resigned and the company wants to relieve you early, they can do so, and they need not pay for the same, as you have resigned and the company has not asked you to go. Secondly, you will also not pay the company for the shortfall of the notice, as you are ready to serve the entire notice period and have not asked for an early relieving date.

Therefore, you will be paid for the days that you have worked till. Just ensure that your resignation letter mentions your last date as per the notice period and nowhere does it convey that you want an early relieving. Also, when the company says that your last date is an early date, take it in writing that they preponed the date on their own and so no deductions towards the notice period are liable.

The question of your willingness to serve does not arise, since as per the Terms of Appointment, you are required to serve a 2-month notice period or pay 2 months' gross salary in lieu of notice. Please focus on finding a new job instead of solely trying to receive 2 months' salary abruptly. If your employer terminates your service without serving the mandatory notice, you are entitled to 2 months' salary. Please consider changing your thought process.

Since you are willing to serve the entire notice period in accordance with the terms of the service agreement, and if the company wants to relieve you early at its own discretion, then surely your company has to pay the amount in lieu of any notice period shortfall.

However, an employee can resign at any time for better prospects. If an employee tenders his/her resignation, the company cannot hold the employee back from serving and completing the notice period by way of early relieving. If they do so, they also have to pay the amount in lieu of the notice period because in this scenario, the employee has not asked for early relieving.

Thanks & Regards,

V. SHAKYA
HR & Labour, Corporate Laws Advisor

Krish,

Please read the Notice Period clause in your Appointment Letter carefully. Sometimes it is written as, "Either party can serve notice for 1/2/3 months or payment in lieu of the notice period. The other party has the liberty to relieve early without any payment for early release."

Suresh