Navigating Notice Periods: Should We Withhold Salaries for Resigning Employees?

Notice Period in MNC Appointment Letters

In a typical case with an MNC, they have a clause written in their appointment letter regarding the notice period in the event of resignation. During training or probation, the notice period is 15 days, and post-confirmation, the notice period is 90 days.

Salary Withholding During Notice Period

My question is, if a confirmed employee with a notice period of 90 days resigns, is it necessary to withhold their salary fully or partially until they complete their notice period?

Actions for Non-compliance with Notice Period

If we do not withhold the salary and the employee leaves without notice or completing the notice period, what actions can be taken in such a case?

When the notice period is equal to or more than a month and the employee's resignation is only effective from a future date, which is exactly after the entire notice period, it automatically implies that the employee is going to serve the entire notice period. The employer would relieve the employee on the expiry of the notice period only, irrespective of the date of acceptance of resignation. So, how can the employer hold the employee's salary for the intervening wage periods during which the employee has actually worked?

Effect of Leaving in the Middle of the Notice Period

The effect of leaving in the middle of the notice period or without notice by the employee, without the payment of partial or full notice salary as the case may be, can be one and the same, i.e., abscondence. Against this, the employer has to initiate formal disciplinary action and terminate the services of the employee on the grounds of misconduct.

The effect of leaving in the middle of a notice period or without notice by the employee, without the payment of partial or full notice salary, can be one and the same, i.e., abscondence, against which the employer has to initiate formal disciplinary action and terminate the services of the employee on the grounds of misconduct.

Sir,

In case the management terminates an employee after serving the notice period, is such termination eligible for 25F benefits or not?

PVV