We want to relieve him with immediate effect however he wants to serve a full notice period of 3 months asking for notice salary

Hi All, Please help... there is an employee who has resigned by himself and he was on PIP for 1 month. He is a confirmed employee. We want to relieve him with immediate effect however he wants to serve a full notice period of 3 months and ask for 3 months' salary if we relieve him immediately. Our employment condition for notice is as below:

"On confirmation, you will be required to give three months' notice or salary thereof in case you decide to leave our services, subject to the Company's discretion. Where circumstances make it necessary, the Company will have the discretion to relieve you only at the end of the three months' notice period. Similarly, the Company can terminate your services by giving three months' notice or salary thereof."

Request you all to suggest if we can relieve him immediately without giving him notice salary legally.

Thank you in advance.

Regards

Hi,

As it is clearly mentioned that " subject to the Company's discretion" and also as the resignation is voluntary from the employee employer has the right to pre close based on work requirement and no need for notice period pay to be paid to the employee.

Since he was under your performance improvement plan (PIP) and he has resigned with notice period, and you need him to be relieved immediately, why don't you pay notice pay and relieve him? You cannot have different termination condition separately for employees and employer. Moreover, if he has not been working as a supervisor having at least one employee reporting to him, he can get the protection of Industrial Disputes Act. Under ID Act, there is no provision that an employee should serve notice for leaving an establishment. As such, give him notice pay and close the matter at the earliest.

Dear Preeti,

I find lack of factual clarity in your narration.

If the employee has merely submitted his resignation or actually acted on it without waiting for its formal acceptance and orders of relieving? If the answer is ' yes', he cannot claim notice pay.

Otherwise, if it is the employer's intention to accept the resignation forthwith and relieve him without allowing him to serve the three month notice period, the employer is bound to pay him three months salary as it is a counter offer by the employer. That's the legal position.