Termination and Notice Period: Is Your Company Obligated to Pay Full 2 Months' Salary?

The notice period in my company is 2 months; we are registered under the Goa, Daman & Diu Shop & Establishment Act.

My question is: if an employee is terminated with immediate effect, then is the company liable to pay him 2 months' salary or until the last termination day?

If your appointment letter covers a 2-month notice period from the employee's side in the case of resignation, then yes, you need to pay a 2-month notice period to the employee, subject to termination being on valid grounds.

So, the notice period would be 2 months in case of termination, correct?

Yes, either the Notice Period Employment with Wages or pay in lieu thereof in case relieved with immediate effect, in accordance with the terms of employment applicable to the establishment.

Kritarth Team

13.10.18