Can We Legally Relieve an Employee on PIP Without Paying Notice Salary?

Hi all, Please help. There is an employee who has resigned on his own, and he was on a Performance Improvement Plan (PIP) for one month. He is a confirmed employee. We want to relieve him with immediate effect; however, he wants to serve a full notice period of three months and is asking for three months' salary if we relieve him immediately. Our employment condition for notice is as follows:

"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."

We kindly request your suggestions on whether we can legally relieve him immediately without giving him notice salary.

Thank you in advance.

Regards

Hi, As it is clearly mentioned that "subject to the Company's discretion," and since the resignation is voluntary from the employee, the employer has the right to pre-close based on work requirements without the need for notice period pay to be paid to the employee.

Since he was under your Performance Improvement Plan (PIP) and has resigned with a 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 conditions separately for employees and the employer. Moreover, if he has not been working as a supervisor with at least one employee reporting to him, he can get the protection of the Industrial Disputes Act. Under the 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 a 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 counteroffer by the employer. That's the legal position.