Can Management Deny Notice Period and Avoid Compensation for a Resigning Senior Executive?

Compensation for Notice Period

I have a query. In our organization, if an employee wishes to leave, they must serve a notice period of 60 days from the day of resignation. The employee is willing to comply, but management does not want them to continue their services. Will there be any compensation applicable from management's end, as the employee wants to serve their notice period but is not being allowed to do so?

Retrenchment Compensation for Senior Executive

Also, the employee is a Senior Executive in the Admin Department. Will retrenchment compensation apply in this situation? The employee has a good track record.

Please advise.

Please confirm the verbatim of the separation clause mentioned in the appointment letter of the employee. Any advice can be given after understanding the contents of the separation clause. Since this is a voluntary separation from the company, the provisions of "retrenchment" as per the I.D. Act, 1947 do not apply here.

Thanks,
Dinesh Divekar

Referring to your query, you have shared the practice followed in your organization that any resigning employee shall have to serve a notice period of 60 days. You mentioned that the employee is willing to serve the notice period, but the management does not want to continue his services. In this scenario, it would result in the termination of service, but officially, it will be recorded as a forced resignation. Regardless, as per policy, the management is required to provide him with 60 days' salary in his Full and Final settlement.

Our appointment letter states that if the organization terminates a confirmed employee, it will provide one month's notice to the employee. However, if the employee wishes to leave the organization, they are required to serve a 60-day notice period. Any shortfall in the notice period will be adjusted from the full and final settlement of the employee, as has occurred in the past.

It is evident that this agreement is one-sided. The organization has not specified that if they decide to relieve the employee before the completion of the notice period, the employee will be entitled to receive notice pay for the remaining period.

Thank you.