As per the contract, I have to serve a 2-month notice period if I wish to leave the company. If I don't serve the full notice period, then I have to pay 2 months' salary to the employer.
Question About Notice Period Payment
My question here is, what amount do I have to pay to the employer for the shortfall in the notice period? Is it the monthly basic salary or the gross salary (monthly salary with other entitlements)? Is there any law for such a situation? Because nowadays, companies have defined their own laws, rules, and regulations. They can relieve you in 2 days, or they can threaten you to serve the full notice period.
Need for Government Policies
The government should establish and enforce strict policies for both the company and the employee. If it is a one-month notice, no employee could leave the company, and the company could not ask a working professional to join on an immediate basis.
God, please help us.
From United Kingdom, London
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Question About Notice Period Payment
My question here is, what amount do I have to pay to the employer for the shortfall in the notice period? Is it the monthly basic salary or the gross salary (monthly salary with other entitlements)? Is there any law for such a situation? Because nowadays, companies have defined their own laws, rules, and regulations. They can relieve you in 2 days, or they can threaten you to serve the full notice period.
Need for Government Policies
The government should establish and enforce strict policies for both the company and the employee. If it is a one-month notice, no employee could leave the company, and the company could not ask a working professional to join on an immediate basis.
God, please help us.
From United Kingdom, London
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When it is a private limited company, the company defines the rules and regulations. The normal notice period in most companies is 1-3 months (depending on the industry and designation as well).
A person who is resigning can adjust their unavailed leaves against the notice period (most companies allow this; ask your HR for the same). Usually, no one is very picky about it and allows it unless you have to hand over something important that cannot be done in the time stipulated by you.
In your case, the notice period is 60 days. If, for example, you can only serve 45 days, you can adjust the remaining 15 days with your leave or let go of your salary. The salary would be the salary drawn (with all compensation).
From India, Mumbai
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742A person who is resigning can adjust their unavailed leaves against the notice period (most companies allow this; ask your HR for the same). Usually, no one is very picky about it and allows it unless you have to hand over something important that cannot be done in the time stipulated by you.
In your case, the notice period is 60 days. If, for example, you can only serve 45 days, you can adjust the remaining 15 days with your leave or let go of your salary. The salary would be the salary drawn (with all compensation).
From India, Mumbai
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Yes, I too feel there should be some restriction for employers. One of my friends got an excellent offer from a reputed concern. When he approached his present manager with his resignation letter, his manager asked him to compulsorily serve a notice period of 2 months, or else he was asked to pay the gross salary for the 2 months. My friend somehow managed to collect and give the management the 2-month gross salary which they asked for, but they didn't accept it and asked him to serve the 2-month compulsory notice period so that his offer may expire, leaving him with no other option but to work in the same concern. What filthy human beings these people are...
My friend explained a lot, but they were not ready to hear anything from his side. He served the 2-month notice period and is now searching for a job. There should be some law to hold these people accountable.
From United Kingdom, London
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My friend explained a lot, but they were not ready to hear anything from his side. He served the 2-month notice period and is now searching for a job. There should be some law to hold these people accountable.
From United Kingdom, London
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Understanding Notice Period Obligations
Yes, I too feel there should be some restrictions for employers. One of my friends received an excellent offer from a reputed company. When he approached his current manager with his resignation letter, his manager insisted that he serve the notice period of two months. Alternatively, he was asked to pay the gross salary for those two months. My friend managed to collect the two-month gross salary and offered it to the management, but they refused to accept it and insisted he serve the two months. This was likely to ensure that his offer would expire, leaving him with no option but to continue working at the same company. What unpleasant behavior from these individuals.
My friend explained his situation extensively, but they were not willing to listen. He ended up serving the two-month notice period and is now searching for a new job.
There should be some law to address such situations.
Karumahe,
Firstly, we are not here to judge anyone.
Secondly, how can you blame someone personally? Do you think HR professionals have something personal against the person they want to ruin the career of?
Please understand that while HR takes the initiative to make HR policies, it is the top management that has to accept or reject them.
HR is not the supreme authority; HR is also answerable to someone. So when the top person asks HR to do a task, whether or not they like it, they have to do it. They are bound by their employment to carry out the orders of their seniors.
Another thing, HR professionals are merely employees just like you, bound by the same employment terms as you, and they also have to follow the same processes and procedures expected from you. So, how is HR the "culprit?"
Neither can you say "top management" is a culprit because every individual has experiences that guide their decisions. Perhaps you would be in a better position to understand top management's, director's, or CEO's challenges when you own your business and have people working under you.
Try to walk a mile in a person's shoes before you critique their style of walking. That is all I would say at the end.
And about rules and regulations - though private companies have their own rules, please note that they are on par with other organizations in the same industry.
You can surely challenge the policies of a company if they are legally wrong. Try to find a legal error in one, and you wouldn't notice any.
Whatever policies are crafted, HR first studies the laws and implications that the government imposes, ensuring minimum standards are implemented. So rest assured that whatever you're getting would not be below the minimum standards prescribed by the government.
Sorry if I've been rude anywhere in my post, I didn't intend to, but I guess it was necessary for all to know how HR works. The hate policy against HR should be discontinued.
From India, Mumbai
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Yes, I too feel there should be some restrictions for employers. One of my friends received an excellent offer from a reputed company. When he approached his current manager with his resignation letter, his manager insisted that he serve the notice period of two months. Alternatively, he was asked to pay the gross salary for those two months. My friend managed to collect the two-month gross salary and offered it to the management, but they refused to accept it and insisted he serve the two months. This was likely to ensure that his offer would expire, leaving him with no option but to continue working at the same company. What unpleasant behavior from these individuals.
My friend explained his situation extensively, but they were not willing to listen. He ended up serving the two-month notice period and is now searching for a new job.
There should be some law to address such situations.
Karumahe,
Firstly, we are not here to judge anyone.
Secondly, how can you blame someone personally? Do you think HR professionals have something personal against the person they want to ruin the career of?
Please understand that while HR takes the initiative to make HR policies, it is the top management that has to accept or reject them.
HR is not the supreme authority; HR is also answerable to someone. So when the top person asks HR to do a task, whether or not they like it, they have to do it. They are bound by their employment to carry out the orders of their seniors.
Another thing, HR professionals are merely employees just like you, bound by the same employment terms as you, and they also have to follow the same processes and procedures expected from you. So, how is HR the "culprit?"
Neither can you say "top management" is a culprit because every individual has experiences that guide their decisions. Perhaps you would be in a better position to understand top management's, director's, or CEO's challenges when you own your business and have people working under you.
Try to walk a mile in a person's shoes before you critique their style of walking. That is all I would say at the end.
And about rules and regulations - though private companies have their own rules, please note that they are on par with other organizations in the same industry.
You can surely challenge the policies of a company if they are legally wrong. Try to find a legal error in one, and you wouldn't notice any.
Whatever policies are crafted, HR first studies the laws and implications that the government imposes, ensuring minimum standards are implemented. So rest assured that whatever you're getting would not be below the minimum standards prescribed by the government.
Sorry if I've been rude anywhere in my post, I didn't intend to, but I guess it was necessary for all to know how HR works. The hate policy against HR should be discontinued.
From India, Mumbai
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No, please, I am not offended, but I offer to answer all your queries here.
Please understand that the reply for the answer remains the same as I stated in post no 3. Let me explain and elaborate.
Notice Period and Responsibilities
If the notice period states a 2-month notice period or salary in lieu of it, the employee can be relieved in those 2 months. Or if he doesn’t wish to serve the 2-month notice period, he should pay the salary against it and get it done. However, sometimes it so happens that you have certain important responsibilities/tasks in the ongoing project. In such a case, you leaving the organization may leave the project clueless. You are expected to serve the 2-month notice so that you can do a proper handover.
The only meaning of my comments was, even if the HR understands that you have a great opportunity, it is not always in the hands of HR to give you a relieving letter. An HR can’t relieve you unless your supervisor, your head of the department, and your project lead give a green signal. Please understand that. It is just that on the face value of it, HR would come to you and say a big NO that you hate HR, while the NO was directed from somewhere else.
I am not here to prove anyone right or wrong, as I already said before. I am just saying how things work actually. I just wish to ask why would an HR stop you from leaving an organization when he/she has no idea what you perform in your team? How important are you in your team or what is the progress of the project on which you're working? All these details are with your supervisor, and when one files the paper, HR needs to get approval from all your supervisors. Unless they relieve you from your duties, HR can’t hand you the relieving letter. HR is not just a top-bottom communication link. It is also a bottom-top communication link. I have seen that in bigger organizations, I myself practice it and say so. There may be a few people who might be doing "Haa ji sir ji," but just for a very less percentage of such people, we can’t say all HR are bad.
I can just state this - My appointment letter says 1 month’s notice from both ends. However, today if I wish to resign, I’ll have to serve more than that as I’m the only HR and need to find a suitable candidate, ensure a proper handover, and things like that. It sometimes goes unsaid when you’re having an important role to play.
There are certain people who you want to get rid of, and a company would not try to retain them. If a company tries to retain you, understand you're important to them. That’s it. In fact, a company trying to retain you is one of the best compliments you could get for your work. No one would like to retain someone who’s not performing or who’s performing below standards. Just because someone is at the top doesn’t mean they’re high performers.
Also, as I said, HR is influenced by seniors, and they have to do what seniors say. Again, we never know what kind of role such people are playing in their team, so I wouldn’t comment by taking a side. I would rather be neutral on this one, just because I haven’t had this experience to comment/advice. Hope you understand.
Again, I would suggest this, if you have a good rapport with your superiors, you can always tell them you need growth. You want to spread your wings further. Give this every few days, and wait back to see their reply. Either they’ll start taking you seriously and discuss what growth you need - salary/roles/etc., and you can negotiate, or you can say you would like to work for some brand. That way you’re indicating to your senior that you may leave if you get a chance. Do this after you know you would be called for an interview at least to 4-5 places, and it would click at least at 1 place. Try to convince your superiors and work extra if needed to do a proper handover and relieve from work. That’s the only advice I give, and that’s the only way I’m planning to do when I look for a change.
If you would analyze, there is still the craze of getting a govt job, mostly because it’s a fixed-hours job, you get a pension after retirement, you get all other facilities and benefits. With the private sector, there’s more competition. The top competitors in most industries, if you note, are from the private sector. Why was that possible? Because of the people who work for them, right? How can someone just let go of someone who’s so responsible and contributing to their success? Why not take things in a positive spirit? If you think negatively, you would be frustrated, agitated, and it would affect you. If you consider things positively, you’d be calm and can strategize better. Don’t you think so?
Of course, we do. The thing is when HR communicates to the most contributing people - operations top management knows what we talk (mostly because it’s their message we’re passing, and also because it’s a part of our duty and we’re going to abide by it). When we communicate to the top management, operations people do not know, because they feel it’s a one-way communication. In my current organization, I have been taking an employee’s viewpoint indirectly and communicating it to our CEO. My colleagues don’t know about it. Does it mean I am blinded and not understanding their viewpoint? You never know what was discussed in the cabin; you’d only know what was decided upon. HR is to maintain things at a confidential level.
Just want to ask you - How would you feel when someone curses you for something that you’ve not meant, you’ve not said, neither have you thought of? You just passed the message, but you’re the one who is in the hate file. Don’t hate HR; instead, go to them, share concern, and trust them to take it forward sometime.
Again, as I had said, I’m not here to say who’s right or who’s wrong. I just wanted to give you a complete scenario of work. Hope I wasn’t rude. Apology if it hurt.
Regards
From India, Mumbai
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Please understand that the reply for the answer remains the same as I stated in post no 3. Let me explain and elaborate.
Notice Period and Responsibilities
If the notice period states a 2-month notice period or salary in lieu of it, the employee can be relieved in those 2 months. Or if he doesn’t wish to serve the 2-month notice period, he should pay the salary against it and get it done. However, sometimes it so happens that you have certain important responsibilities/tasks in the ongoing project. In such a case, you leaving the organization may leave the project clueless. You are expected to serve the 2-month notice so that you can do a proper handover.
The only meaning of my comments was, even if the HR understands that you have a great opportunity, it is not always in the hands of HR to give you a relieving letter. An HR can’t relieve you unless your supervisor, your head of the department, and your project lead give a green signal. Please understand that. It is just that on the face value of it, HR would come to you and say a big NO that you hate HR, while the NO was directed from somewhere else.
I am not here to prove anyone right or wrong, as I already said before. I am just saying how things work actually. I just wish to ask why would an HR stop you from leaving an organization when he/she has no idea what you perform in your team? How important are you in your team or what is the progress of the project on which you're working? All these details are with your supervisor, and when one files the paper, HR needs to get approval from all your supervisors. Unless they relieve you from your duties, HR can’t hand you the relieving letter. HR is not just a top-bottom communication link. It is also a bottom-top communication link. I have seen that in bigger organizations, I myself practice it and say so. There may be a few people who might be doing "Haa ji sir ji," but just for a very less percentage of such people, we can’t say all HR are bad.
I can just state this - My appointment letter says 1 month’s notice from both ends. However, today if I wish to resign, I’ll have to serve more than that as I’m the only HR and need to find a suitable candidate, ensure a proper handover, and things like that. It sometimes goes unsaid when you’re having an important role to play.
There are certain people who you want to get rid of, and a company would not try to retain them. If a company tries to retain you, understand you're important to them. That’s it. In fact, a company trying to retain you is one of the best compliments you could get for your work. No one would like to retain someone who’s not performing or who’s performing below standards. Just because someone is at the top doesn’t mean they’re high performers.
Also, as I said, HR is influenced by seniors, and they have to do what seniors say. Again, we never know what kind of role such people are playing in their team, so I wouldn’t comment by taking a side. I would rather be neutral on this one, just because I haven’t had this experience to comment/advice. Hope you understand.
Again, I would suggest this, if you have a good rapport with your superiors, you can always tell them you need growth. You want to spread your wings further. Give this every few days, and wait back to see their reply. Either they’ll start taking you seriously and discuss what growth you need - salary/roles/etc., and you can negotiate, or you can say you would like to work for some brand. That way you’re indicating to your senior that you may leave if you get a chance. Do this after you know you would be called for an interview at least to 4-5 places, and it would click at least at 1 place. Try to convince your superiors and work extra if needed to do a proper handover and relieve from work. That’s the only advice I give, and that’s the only way I’m planning to do when I look for a change.
If you would analyze, there is still the craze of getting a govt job, mostly because it’s a fixed-hours job, you get a pension after retirement, you get all other facilities and benefits. With the private sector, there’s more competition. The top competitors in most industries, if you note, are from the private sector. Why was that possible? Because of the people who work for them, right? How can someone just let go of someone who’s so responsible and contributing to their success? Why not take things in a positive spirit? If you think negatively, you would be frustrated, agitated, and it would affect you. If you consider things positively, you’d be calm and can strategize better. Don’t you think so?
Of course, we do. The thing is when HR communicates to the most contributing people - operations top management knows what we talk (mostly because it’s their message we’re passing, and also because it’s a part of our duty and we’re going to abide by it). When we communicate to the top management, operations people do not know, because they feel it’s a one-way communication. In my current organization, I have been taking an employee’s viewpoint indirectly and communicating it to our CEO. My colleagues don’t know about it. Does it mean I am blinded and not understanding their viewpoint? You never know what was discussed in the cabin; you’d only know what was decided upon. HR is to maintain things at a confidential level.
Just want to ask you - How would you feel when someone curses you for something that you’ve not meant, you’ve not said, neither have you thought of? You just passed the message, but you’re the one who is in the hate file. Don’t hate HR; instead, go to them, share concern, and trust them to take it forward sometime.
Again, as I had said, I’m not here to say who’s right or who’s wrong. I just wanted to give you a complete scenario of work. Hope I wasn’t rude. Apology if it hurt.
Regards
From India, Mumbai
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My question here is, what amount do I have to pay to the employer for a shortfall in the notice period? Is it the monthly basic salary or the gross salary (monthly salary with other entitlements)?
Understanding Notice Period Payment
Ashish Bhai, it is stated in the Shops and Establishment Act that an employee is required to serve at least a month's notice period or pay salary in lieu of it. As far as my knowledge is concerned, there is no law defining the calculation of the notice amount based on basic salary or gross salary. Therefore, at this stage, the company can deduct the amount either based on the basic salary or the gross salary.
Seniors, please provide feedback if there are any inaccuracies.
From India, Delhi
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Understanding Notice Period Payment
Ashish Bhai, it is stated in the Shops and Establishment Act that an employee is required to serve at least a month's notice period or pay salary in lieu of it. As far as my knowledge is concerned, there is no law defining the calculation of the notice amount based on basic salary or gross salary. Therefore, at this stage, the company can deduct the amount either based on the basic salary or the gross salary.
Seniors, please provide feedback if there are any inaccuracies.
From India, Delhi
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Dear Himanshu and all,
Ankita is correct regarding the concerns she has raised about HR professionals. Many employees misunderstand us, thinking we are like Hitler and believe everything is solely in our hands.
Notice Period and Salary Deduction
Regarding your notice period, as per the S&E Act, it is typically one month's notice period, and the calculation to deduct salary in lieu of it is generally based on the Basic salary. However, please carefully read your Appointment letter first. This is where most of us get confused. Without understanding the proper terms and conditions, we often try to prove ourselves.
If you have a good rapport with your immediate boss, it may not be a big issue. As someone rightly mentioned in this thread, your employer will only urge you to complete your notice period if there are very important tasks or projects. In that case, take responsibility for your current job and leave on a good note. If they are making efforts to retain you in any way, it means you are an asset to them.
In short, consider all factors carefully before taking action and proceed smartly.
Regards,
From Japan
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Ankita is correct regarding the concerns she has raised about HR professionals. Many employees misunderstand us, thinking we are like Hitler and believe everything is solely in our hands.
Notice Period and Salary Deduction
Regarding your notice period, as per the S&E Act, it is typically one month's notice period, and the calculation to deduct salary in lieu of it is generally based on the Basic salary. However, please carefully read your Appointment letter first. This is where most of us get confused. Without understanding the proper terms and conditions, we often try to prove ourselves.
If you have a good rapport with your immediate boss, it may not be a big issue. As someone rightly mentioned in this thread, your employer will only urge you to complete your notice period if there are very important tasks or projects. In that case, take responsibility for your current job and leave on a good note. If they are making efforts to retain you in any way, it means you are an asset to them.
In short, consider all factors carefully before taking action and proceed smartly.
Regards,
From Japan
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If you're not able to serve the notice period, as far as my knowledge goes, you pay the same amount that the employer pays you every month... which is your monthly gross salary. Seniors, please validate.
From India, Mumbai
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From India, Mumbai
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Clarification on Salary Terms in Appointment Letter
If the appointment letter states only "salary" without specifying whether it is the basic or gross salary, could seniors please advise on how to interpret this?
From India, Bangalore
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If the appointment letter states only "salary" without specifying whether it is the basic or gross salary, could seniors please advise on how to interpret this?
From India, Bangalore
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Understanding Salary Components for Notice Period Shortfall
If the appointment letter states just "salary" without specifying whether it refers to basic or gross salary, the monthly salary you draw is what you would need to pay back to the employer. For instance, if your monthly salary is X Rs., you would pay back X Rs. Your monthly salary may include all or some of the following components:
- Basic salary
- Dearness/Living Allowance
- Medical Allowance
- Conveyance Allowance
- Any other allowances
- Professional Tax (deduction, so it won't come into your hand but is a part of your salary)
- TDS (deduction, so not in your hand but is deducted from your salary)
- Any other deductions
Please note that if any salary advance or loan was taken, that would be an added liability on your part to pay to the company. All this would be reflected on your F&F (Full & Final) statement.
In addition to this, if you've taken more leaves than granted for the period you worked, a salary deduction would take place. On the other hand, if you have leave to your credit in the said period (and if you have a leave encashment policy), those unavailed leaves would be cashed and paid.
Hope this helped :)
From India, Mumbai
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If the appointment letter states just "salary" without specifying whether it refers to basic or gross salary, the monthly salary you draw is what you would need to pay back to the employer. For instance, if your monthly salary is X Rs., you would pay back X Rs. Your monthly salary may include all or some of the following components:
- Basic salary
- Dearness/Living Allowance
- Medical Allowance
- Conveyance Allowance
- Any other allowances
- Professional Tax (deduction, so it won't come into your hand but is a part of your salary)
- TDS (deduction, so not in your hand but is deducted from your salary)
- Any other deductions
Please note that if any salary advance or loan was taken, that would be an added liability on your part to pay to the company. All this would be reflected on your F&F (Full & Final) statement.
In addition to this, if you've taken more leaves than granted for the period you worked, a salary deduction would take place. On the other hand, if you have leave to your credit in the said period (and if you have a leave encashment policy), those unavailed leaves would be cashed and paid.
Hope this helped :)
From India, Mumbai
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In my opinion, salary means basic salary; the rest are the allowances, i.e., HRA, special allowances, etc. Isn't it? Company pays the allowances, HRA, and others if the employee works for the employer during that time. The employer doesn't give gross salary in the event of illness because the employee doesn't work during that period.
So, in the event of resignation or termination, if it is not specifically mentioned whether it is basic or gross, the recovery and pay should be based on the basic salary because the employee isn't working during this period.
Kindly advise...
From India, Bangalore
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So, in the event of resignation or termination, if it is not specifically mentioned whether it is basic or gross, the recovery and pay should be based on the basic salary because the employee isn't working during this period.
Kindly advise...
From India, Bangalore
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Understanding Salary Components in Notice Periods
In my opinion, salary means basic salary; the rest are the allowances, i.e., HRA, special allowances, etc. Isn't it?
The company pays the allowances, HRA, and others if the employee works for the employer during that time. The employer doesn't provide gross salary in the event of illness because the employee isn't working during that period.
Therefore, in the event of resignation or termination, if it is not specifically mentioned whether it is basic or gross, the recovery and pay should be based on basic salary because the employee isn't working during this period.
If not specified, how can one determine if the salary equals basic salary or gross salary? Usually, salary is referred to as gross salary. For example, if your monthly gross is 25,000 (just an example figure), and out of this, your basic is 10,000, when someone asks you about your salary, you'd say 25,000.
Incentives are not considered a part of the salary as they are performance-dependent and not fixed in nature. Salary usually denotes a fixed amount you receive on a monthly or weekly basis.
In the past, there was only one salary, and allowances were not structured. Nowadays, we categorize and structure your salary to keep your basic salary as low as possible and provide more allowances to maximize tax benefits. Upon closer examination, you will find that most allowances are primarily for tax-saving purposes.
Therefore, all your fixed allowances are part of your salary.
Hope this explanation helps.
From India, Mumbai
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In my opinion, salary means basic salary; the rest are the allowances, i.e., HRA, special allowances, etc. Isn't it?
The company pays the allowances, HRA, and others if the employee works for the employer during that time. The employer doesn't provide gross salary in the event of illness because the employee isn't working during that period.
Therefore, in the event of resignation or termination, if it is not specifically mentioned whether it is basic or gross, the recovery and pay should be based on basic salary because the employee isn't working during this period.
If not specified, how can one determine if the salary equals basic salary or gross salary? Usually, salary is referred to as gross salary. For example, if your monthly gross is 25,000 (just an example figure), and out of this, your basic is 10,000, when someone asks you about your salary, you'd say 25,000.
Incentives are not considered a part of the salary as they are performance-dependent and not fixed in nature. Salary usually denotes a fixed amount you receive on a monthly or weekly basis.
In the past, there was only one salary, and allowances were not structured. Nowadays, we categorize and structure your salary to keep your basic salary as low as possible and provide more allowances to maximize tax benefits. Upon closer examination, you will find that most allowances are primarily for tax-saving purposes.
Therefore, all your fixed allowances are part of your salary.
Hope this explanation helps.
From India, Mumbai
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Thanks for the discussion. Yes, in general terms, if somebody mentions the salary in an interview, that is the gross salary (Total CTC). However, in legal terms, salary refers to the basic salary, while the rest are considered as allowances. For example:
- Basic Salary = 20000
- HRA = 10000
- Special allowances = 15000
- Total = 45000
In legal terms, the salary is 20000. This is based on my understanding. Please correct me if I am wrong.
Regards,
Robin
From India, Bangalore
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- Basic Salary = 20000
- HRA = 10000
- Special allowances = 15000
- Total = 45000
In legal terms, the salary is 20000. This is based on my understanding. Please correct me if I am wrong.
Regards,
Robin
From India, Bangalore
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This seems to be a very strange situation. I am in the UK, and here this would not really happen, I don't think.
Notice Period and Contractual Obligations
An employee has an agreed notice period in their contract, for example, 3 months. When they hand in their notice, the leave date is agreed upon after that 3 months. If the employee wants to leave any earlier, then this would be a negotiation with the relevant manager. If a shorter notice period is agreed upon, then the employee would simply receive the pay for the period they worked—there would be no circumstance where the employee would owe the employer as they have not been paid the money. If the employer could not accommodate a shorter notice period, then the employee would have to work the full notice period. If they then did not, it is a breach of the employment contract, and they could ultimately be dismissed for misconduct in the same way as someone who just doesn't turn up for work.
If the employer did not want the employee to work the full notice period, they would have to pay the employee for the full notice as they are contractually entitled to it unless they agreed to forgo it for some reason.
Ultimately, the employer is entitled to the full period of notice to be worked and the employee to the pay for that work—anything other than that would need to be negotiated and agreed upon by both parties.
Does that help?
Regards,
Paul
From United Kingdom, Coventry
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Notice Period and Contractual Obligations
An employee has an agreed notice period in their contract, for example, 3 months. When they hand in their notice, the leave date is agreed upon after that 3 months. If the employee wants to leave any earlier, then this would be a negotiation with the relevant manager. If a shorter notice period is agreed upon, then the employee would simply receive the pay for the period they worked—there would be no circumstance where the employee would owe the employer as they have not been paid the money. If the employer could not accommodate a shorter notice period, then the employee would have to work the full notice period. If they then did not, it is a breach of the employment contract, and they could ultimately be dismissed for misconduct in the same way as someone who just doesn't turn up for work.
If the employer did not want the employee to work the full notice period, they would have to pay the employee for the full notice as they are contractually entitled to it unless they agreed to forgo it for some reason.
Ultimately, the employer is entitled to the full period of notice to be worked and the employee to the pay for that work—anything other than that would need to be negotiated and agreed upon by both parties.
Does that help?
Regards,
Paul
From United Kingdom, Coventry
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Sure Paul, we have a similar clause wherein an employee is to serve the stated notice period when they submit their resignation. If the notice period is, for example, X months, we do not usually pay the amount during that period. We settle it as F&F (Full and Final) payment. This way, all the liabilities and dues on either side are calculated and recovered accordingly.
If a company asks an employee to resign and wants it to be immediate (without a notice period), the company pays the salary for the notice tenure. Similarly, if an employee wishes to fast-track the resignation and does not wish to serve the notice, they also have the option of paying the same amount back to the employer and leaving immediately.
Hope this clears up any doubts you had.
From India, Mumbai
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If a company asks an employee to resign and wants it to be immediate (without a notice period), the company pays the salary for the notice tenure. Similarly, if an employee wishes to fast-track the resignation and does not wish to serve the notice, they also have the option of paying the same amount back to the employer and leaving immediately.
Hope this clears up any doubts you had.
From India, Mumbai
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