Early Release from Notice Period: Should My Company Pay for the Remaining Days?

Early Release and Notice Period Compensation

Is my company liable to pay me if they relieve me earlier? I have completed 46 days, and the notice period is 90 days. The HR has told me today is your last day. We are giving you an early release as there are still 44 days to complete my notice period. Would the company pay for these remaining 44 days?

Dear Siddhartha Patil,

I wish you had raised this with your HR. Anyway, please refer to the clause inserted in the appointment letter regarding the notice period. Could you provide the verbatim text of the clause in your next post for review and comments?

According to the clause, if an employee requests an early release without completing the stipulated notice period mentioned in the appointment letter, the company may require payment in lieu of the remaining notice period. Consequently, you may be entitled to receive proportional payment for the early release by the company. However, this is a general interpretation. As mentioned earlier, please share the specific details of the clause related to the notice period.

Thanks,

Dinesh Divekar

Their liability to pay the entire notice pay is dependent on the terms that are in your employment contract or appointment letter. Morally, if they asked you to complete the notice period and you delayed your joining at the next company for it, they should pay you.

Taking a legal route is expensive and not worth it. I suggest you take the matter up with HR or perhaps a senior executive if you have a connection to them.

Dear Sir/Madam,

Giving a notice period of 90 days to your company means you will leave the company on the 90th day. This allows for the recruitment of another person/employee within the 90 days. If the company relieves you before the 90 days, then you are free to move to a new company. In this case, the company will not pay you for the remaining days. If the new company does not employ you within the 90 days, then you can enjoy your life.

Thank you.

Yes. They are bound to pay you for the unserved notice period as they are requesting you to leave early.