Resignation Date Dilemma: Should We Pay Until the Email Date or Last Working Day?

Hi all, This is a startup company and we are not yet considering the notice period. One employee sent an email to his manager on 27 Oct at 8:00 AM, stating that he is not receiving his salary on time and is not interested in continuing with the team. The Senior HR is suggesting considering his last working day as 26 Oct, and we will pay him only until the 26th. He argues, "Why pay until the 27th if he only worked until the 26th and his timesheet is recorded until 26 Oct?" (HR mentioned he can't pay for an extra day).

According to me, if there is no notice period, we should consider the employee's last working date as the date on which the employee sent the email or letter to the company, and we should pay for the 27th as well. Please comment on what date we should pay the salary.

Basically, resignation is a unilateral offer given by the employee to terminate the contract of employment, which requires the acceptance of the employer. Resignation would take effect from the date on which the employee is formally relieved from his job. If no notice is prescribed, it would take effect from the date mentioned by the employee in his resignation. In the case cited in your post, the employee has to be deemed to be in service only up to October 26, and therefore, he must be paid up to and inclusive of that date only. It would be better to issue a relieving order and experience certificate accordingly.

Conditional Resignation and Legal Implications

In my opinion, since the employee has submitted a conditional resignation stating that he is not receiving his salary on time, this is not considered a resignation in the eyes of the law and is not tenable. It is likely to be quashed by a court of law if challenged by the employee.

As per my experience, since the employee has sent you this conditional resignation, you should ask them to tender it unconditionally and then accept.

Regards, S.K. Mittal

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Understanding Resignation and Notice Period

Of course, perceptions differ. Resignation, basically, signifies the unwillingness of the employee to continue their services in the same organization. Therefore, I am of the view that if the reason shown by the employee for their resignation is true or indisputable, it will not amount to casting any aspersions on the management, nor could it be treated as a condition for resignation. Unless the employer wants or needs to retain the employee for bona fide reasons, it is not their business to scrutinize the reason for resignation, nor are they competent to dictate the employee to redraft the resignation letter the way they like.