Should I Pay the Notice Period Salary After Immediate Termination for Misconduct?

Dear HR Professionals, I signed a contract with a senior employee as Executive Director in 2016. In his contract, our former HR Manager included a 2-month notice period if either party cancels the contract. Two weeks ago, the Executive Director was terminated immediately due to engaging in illegal activities, specifically orchestrating a negative campaign against the CEO and other top management members to junior employees within the organization. Now, the Executive Director is appealing for his 2-month notice period salary.

Could you please share your valuable insights on whether I should pay his 2-month notice period salary or not? Thank you in advance for your time and ideas.

Yes, you have to pay him two months' notice period as you have terminated him without notice, and the termination clause is binding on both parties.

The HR has canceled the contract without a notice period, in which case he has to pay the company as laid down in the contract.

Has the company terminated him without notice, or has the employee terminated without notice? Please be clear in your query.

Please provide specific words from the contract for better advice.

Let me give an example: If an employee is involved in a corruption case or a sexual harassment case within the organization, and you decide to terminate their employment immediately, should the employee still be entitled to receive their notice period salary?

Thank you for the opportunity to clarify this situation.

Nathrao,

Yes, we terminated him without notice period because he did illegal work in the organization. If we had given him a notice period, maybe he would have caused significant harm to our organization.

If an employee wants to leave the organization for any reason, do you expect him to serve the notice period? If yes, in the same scenario, whatever may be the reason for termination, you need to pay him the notice period from the employer's side.

This is a case of sudden termination of the services of an Executive Director of the Company, most probably on the decision of the Board of Directors as per the exit clause of the contract of service between the Senior Employee and the Company. Therefore, the notice condition mentioned in the contract of service ought to have been followed, for it is an act of discharge simpliciter though the actual reason is something else, like the alleged anti-management acts by him.