Early Exit from Job: How to Handle Notice Period Recovery and Gratuity Eligibility?

I have a question. If an employee has resigned from the company and has requested an early exit, not serving the full notice period of 90 days but only a 60-day notice period, what will be the recovery? Additionally, will the employee be eligible for gratuity? The employee has served the organization for 8 years.

Separation Clause and Early Exit

Unless you share the separation clause mentioned in his Offer of Appointment, it will be difficult to provide a solution or answer to your question.

Notice Period and Recovery

As per service conditions, the notice period is 90 days, but the employee has served for 60 days. Therefore, there is a shortfall of 30 days. In most organizations, in case of a shortfall in the notice period, the employee is required to pay an amount equivalent to 30 days to the employer. The employee may check with the organization.

Gratuity Eligibility

Regarding gratuity, as the employee has worked for 8 years, he/she is entitled to gratuity, and the organization has to pay it.

Regards, S K Bandyopadhyay

There are two issues as I could see:

Short Notice Period

1. Generally, in such cases, a shortfall in the number of days for the notice period is adjusted from the full & final settlement amount to be paid to the employee unless there is something contrary in the terms & conditions of the appointment.

Gratuity Payment

2. The company cannot hold gratuity payment on account of a shortfall in the notice period, nor can they adjust any amount from the same. Rest assured that the company will have to pay the full gratuity amount within 30 days from the separation day.

Thanks,

Aditya

Gratuity Eligibility for Partial Notice Period

Whether an employee serves the entire notice period, only part thereof, or even buys it out fully or in part, the qualifying period of service for the purpose of statutory gratuity has to be reckoned from the date of entry until the date of actual leaving.