Is It Legal to Pay Half Salary if an Employee Refuses to Resign? Seeking Advice on Consequences

Hi, I am working in a manufacturing company. If an employee is not ready to submit their resignation, should we give them half of their salary? I want to know if this is legal and what the consequences are.

If you have appointed the concerned employee after issuing the Offer of Appointment, then the company/HR should demand the resignation letter from him and relieve him as per the terms of the offer of appointment.

Paying half salary to an employee with full attendance for the month would not be legal, and yes, it can have consequences where the employee can easily lodge a complaint about exploitation. I am not sure on what grounds the employee has been asked to resign. So, I may not be able to provide a detailed answer. If the resignation has been asked for based on performance or disciplinary grounds, and if the employee refuses to resign, then it is better to proceed with a full inquiry and share the findings with the employee for proceeding on termination if the evidence is intact. This process is usually difficult. If you could let us know the reason why the employee has been asked to resign, we can look into this.

Without stating reasons for demanding resignation, as rightly pointed out, any advice would be futile. As a true HR professional, you should examine the propriety of demanding resignation. Your query of whether to pay half salary or not is misconceived without the proper knowledge of terms of employment and grounds for resignation/termination.

I am getting the impression that you are doing what you have been told to do without sharing your mind on the issue. Maybe I am wrong, but you have to advise the management on the right action arising from your own conviction supported by legality, ethics, and best practice. Remember, HR is the 'conscience keeper' of the organization.

Regards, Vinayak Nagarkar HR Consultant