Confused About Notice Period Waiver? Why Am I Asked to Pay Three Months' Salary?

Hi! I recently resigned and requested an early release. My manager accepted the request and advised HR for a shortened transition, relieving me in a week. I duly started the process of no dues. However, now HR is saying that while they have waived the notice period, I will need to pay three months' salary!

Understanding the Notice Period Waiver

My understanding is that if the notice period is waived, the organization has agreed to let me go, and neither can I claim any salary for the notice period nor can the company ask me to pay for the notice period. I would appreciate it if you could advise. Thanks much!

Once your notice period is waived off, then you should not be asked for payment of any notice pay. You may ask your HR for the same.

Dear Rajan,

HR may have accepted your application for early relieving, which means you would need to pay the difference in the notice period days. That is what I understand from your query. So, please check what the HR has said in writing and compare it to what has been verbally communicated.

Thank you.

Thanks, Ashutosh! I think there is some misunderstanding here, and of course, someone confused me as well. To me, the concept of the notice period is that a company may require the employee to stay for 3 months (or whatever the notice period is), and the notice period ensures that the employee leaves after completing the task. However, if the employee wants to leave early and management doesn't waive the notice period because there may be some work, the employee will need to pay for the notice period so that the company can get the work done by hiring a replacement and having them complete the pending job. However, if management waives the notice period, it essentially means that the employee may leave and doesn't need to pay anything, as they are not expected to serve the notice period.

The notice period and the salary for the notice period go hand in hand and are two different entities. If both parties willingly waive the notice period, no one should pay anything. However, if any party doesn't waive and insists on the notice period, the other party needs to either serve for the duration or pay the equivalent.

Just thought to share my understanding. I see there is a lot of confusion which creates issues for both parties. In fact, people, mostly on the employer side, try to exploit the employees.

Thanks, all, for the reply.

Please excuse any typos. I meant the notice period and corresponding payment are not different entities.

Dear Rajan, This is a clear case of misunderstanding arising from the use of incorrect words in the communication. HR should not have used the word "waiver" in their communication. The dictionary meaning of waiver is to refrain from insisting on or using a right or claim, or to not demand something you have a right to, or not cause a rule to be obeyed.

In the written communication from HR, they should have stated that the condition of serving the notice period before exit has been diluted; however, the condition of payment in lieu of an incomplete notice period will remain unchanged. This kind of proper sentence structure would have brought clarity.

That is why it is said that written communication is not that easy.

Thanks,

Dinesh Divekar

You should go through your offer documents and company policies before taking any action.

Notice Period and Compensation

In the first case, I would suggest you check if an offer letter has been given and, if so, what the notice period is. If the notice period is specified in the offer letter, that is the notice period that should be given upon resignation, unless there is a bond in place that has been broken, requiring compensation for a certain number of months.

In cases where there is a clear waiver by the management stating that the notice period has been waived, only the shortfall of notice needs to be paid if the resigning employee does not serve the full notice period.

Thank you.