Notice Period Dilemma: Should Employers Pay Two Months' Compensation on Termination?

If the employee has to serve a notice period of two months as per the policy, then in the case of termination, does the employer need to pay the compensation of two months to the employee?

Dear Sharanya,

Termination is altogether a different concept. Termination can be either for proved misconduct or disengagement in services. If it is the latter one, certainly, the employer has to pay.

First, review the terms of employment. If the appointment order states that notice pay is applicable on either side, the employer is responsible for paying upon termination. However, if the termination is due to misconduct, the employee is not entitled to notice pay. Even in cases where an employee is terminated for unsatisfactory performance during the probation period, they are not eligible for notice pay. Kindly review the appointment order in its entirety, including the terms and conditions.