Notice Period Challenges: How Can HR Ensure Employees Pay Their Shortfall Recovery?

Best Practices for Notice Period Process
What are the best practices that HR should include in the notice period process to ensure employees pay their shortfall notice period recovery amount?

Hi, Any shortfall in the notice period should be recovered from the full and final settlement of employees after mutual discussion and agreement. In case there is an insufficient balance in the Full and Final Settlement, the difference payment in the form of a Demand Draft should be obtained from the employees (in the name of the Company), and a supporting letter should be collected from the employees.

Thank you so much for your response. With reference to notice period non-recovery, how can an employer safeguard their interests? Please suggest some guidelines or terms that can be added to the appointment letter or included during the acceptance of resignation. I look forward to your input.

Hi, You may add the following point in the appointment letter:

"The Company will be entitled to terminate your employment by giving you 1 month's written notice. In case you want to terminate this employment, you will be required to give 1 month's written notice or forfeit, in lieu thereof, the gross pay for 1 month or pro-rated for the period by which such notice falls short of 1 month."

Also, during resignation discussions with the employee, make it clear that one month's notice is compulsory, and proper relieving will be given only if the employee serves the proper notice period.