Hi Friends,
I am confuse and struck in the point of termination. One of our two month's employee is terminated because he refuse to work on site. He is quite ok.
Problem:
For other probation period employees we are deducing one months notice period if he / she is not giving any prior information
I would like to know that shall I prepare his “Full & Final Settlement” if yes then shall I deduct his one month salary or not. If we will not deduct any salary then that will become lesion for other to quit without notice because lot many employees don't want any experience letter form company and quit without information
Please guide what to do??
An early action and your valuable comments on this will be appreciated.
Thanks and Regards
Pankaj
From India, New delhi
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13I am confuse and struck in the point of termination. One of our two month's employee is terminated because he refuse to work on site. He is quite ok.
Problem:
For other probation period employees we are deducing one months notice period if he / she is not giving any prior information
I would like to know that shall I prepare his “Full & Final Settlement” if yes then shall I deduct his one month salary or not. If we will not deduct any salary then that will become lesion for other to quit without notice because lot many employees don't want any experience letter form company and quit without information
Please guide what to do??
An early action and your valuable comments on this will be appreciated.
Thanks and Regards
Pankaj
From India, New delhi
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Dear Chandan,
The problem regarding the cutting of salary for one month will not help, as generally, the amount is compensated by the next employer. Yes, you could try the exit interview method. That should bring a better prospect to handling the situation, and the answer will be right before your own eyes. :-P
From India, Nagpur
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The problem regarding the cutting of salary for one month will not help, as generally, the amount is compensated by the next employer. Yes, you could try the exit interview method. That should bring a better prospect to handling the situation, and the answer will be right before your own eyes. :-P
From India, Nagpur
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Hey Chandan,
We have to always prepare F&FS because we, being HR, have to be clear in the working terms. For example, even if any employee leaves the organization without informing, we must clear F&FS and separate the employee from the system so that the employee does not create a problem in the future.
Now, the next point is, should you deduct the notice period? Yes, you should definitely deduct if this is the code of conduct that you follow for all.
Please correct me if I'm wrong!
From India, Mumbai
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We have to always prepare F&FS because we, being HR, have to be clear in the working terms. For example, even if any employee leaves the organization without informing, we must clear F&FS and separate the employee from the system so that the employee does not create a problem in the future.
Now, the next point is, should you deduct the notice period? Yes, you should definitely deduct if this is the code of conduct that you follow for all.
Please correct me if I'm wrong!
From India, Mumbai
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Whether or not you issue a relieving order to an employee who leaves your company without notice is your company's problem. If the standing orders or the appointment order state so, you can demand notice pay. However, you are not supposed to deduct the notice pay from the salary due to an employee. This is because the deduction of any amount not mentioned in section 7 of the Payment of Wages Act, 1936, will be viewed as an unauthorized deduction. If the employee (even though he has resigned, he is still an employee as per the definition of the ID Act!) sues under section 15 of the Payment of Wages Act for the recovery of the amount due to him as wages, the employer will be obliged to pay it. The employer cannot claim that he has deducted notice pay. Demanding notice pay or paying it is a separate matter that should be resolved independently. Therefore, it is advisable not to deduct it from the salary but to recover the amounts through other means, including withholding the relieving order. Remember not to withhold PF forms as well. The PF forms can be submitted by the resigned employee even without the employer's signature.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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Dear Pankaj,
I think Full and final settlement should be done for everyone. But in case of termination of employee by the employer without giving any prior notice to employee than the employer has to waive off the required notice period from the employee side as he/she was aked to leave with immediate effect.
Thanks & Regards,
Hari Naudiyal
From India, Jaipur
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I think Full and final settlement should be done for everyone. But in case of termination of employee by the employer without giving any prior notice to employee than the employer has to waive off the required notice period from the employee side as he/she was aked to leave with immediate effect.
Thanks & Regards,
Hari Naudiyal
From India, Jaipur
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Dear Pankaj,
As you are terminating the employee, notice period is not applicable to him. Further i would like to tell you that if the condition of notice period is applicale to probationers in your organisation and the same has already been issuedto the employees vide appointment and has already been accepted by the employee, only then you have the right to deduct notice pay while preparing Full & Final Settlement. Further if the organisation is terminating the employee, in that case notice pay is due to be paid by the employer to the said employee.
Although in the industry, probationers are being allowed to leave at any time during probation period without citing any reasons for leaving.
Hence, For yur future ease, I would advise you to draft a policy in this regard keeping the interest of both the partiesd(Employer and employee) and circulate the same to all. otherwise it would be termed as violation of employee rights and would make yu end in legal tangle.
hope you will find it useful to your needs.
regards
Amit Anand Gera
From India, New Delhi
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As you are terminating the employee, notice period is not applicable to him. Further i would like to tell you that if the condition of notice period is applicale to probationers in your organisation and the same has already been issuedto the employees vide appointment and has already been accepted by the employee, only then you have the right to deduct notice pay while preparing Full & Final Settlement. Further if the organisation is terminating the employee, in that case notice pay is due to be paid by the employer to the said employee.
Although in the industry, probationers are being allowed to leave at any time during probation period without citing any reasons for leaving.
Hence, For yur future ease, I would advise you to draft a policy in this regard keeping the interest of both the partiesd(Employer and employee) and circulate the same to all. otherwise it would be termed as violation of employee rights and would make yu end in legal tangle.
hope you will find it useful to your needs.
regards
Amit Anand Gera
From India, New Delhi
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The quotes of Mr. Madhu and Hari are correct.
In the case of immediate termination of an employee from the services, there is no question of deduction of the amount from his/her dues on account of the notice period since he/she is not leaving the organization of his/her own accord. However, the employer will be bound to pay the amount of the notice period to the confirmed employee in case of immediate termination from the services.
Regards,
Sivadasan
From India, Udaipur
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In the case of immediate termination of an employee from the services, there is no question of deduction of the amount from his/her dues on account of the notice period since he/she is not leaving the organization of his/her own accord. However, the employer will be bound to pay the amount of the notice period to the confirmed employee in case of immediate termination from the services.
Regards,
Sivadasan
From India, Udaipur
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Dear Pankaj,
I have read all the comments. Without any hesitation, I would recommend a comment from Mr. Madhu TK as a perfect reply and legal support to argue and defend. The rest are general comments without much legal support or assistance for your cause. I acknowledge the depth of knowledge of Mr. Madhu TK, and this reply is very educational for all those who are newly graduated or do not have much legal exposure in the interpretation and application of legal knowledge, particularly concerning labor laws.
Regards,
Badlu
From Saudi Arabia
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I have read all the comments. Without any hesitation, I would recommend a comment from Mr. Madhu TK as a perfect reply and legal support to argue and defend. The rest are general comments without much legal support or assistance for your cause. I acknowledge the depth of knowledge of Mr. Madhu TK, and this reply is very educational for all those who are newly graduated or do not have much legal exposure in the interpretation and application of legal knowledge, particularly concerning labor laws.
Regards,
Badlu
From Saudi Arabia
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Dear friend,
I do not understand where you get the idea of deducting the notice period when you terminate an employee. If I am right, your question was whether you can deduct the notice period when you terminate an employee. Separation occurs due to termination or resignation. In the case of resignation, you need to look at the terms and conditions/standing orders for recovering notice pay. Similarly, in the case of termination, you need to refer to the terms/standing orders for paying the notice pay. Here, the company will pay the notice pay. If that is the case, where is the question of deducting notice pay from the terminated employee?
Siva
From India, Chennai
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I do not understand where you get the idea of deducting the notice period when you terminate an employee. If I am right, your question was whether you can deduct the notice period when you terminate an employee. Separation occurs due to termination or resignation. In the case of resignation, you need to look at the terms and conditions/standing orders for recovering notice pay. Similarly, in the case of termination, you need to refer to the terms/standing orders for paying the notice pay. Here, the company will pay the notice pay. If that is the case, where is the question of deducting notice pay from the terminated employee?
Siva
From India, Chennai
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Dear friends,
This reply is in response to Mr. Madhu's posting. The Payment of Wages Act guides the disbursement of wages payable on a monthly basis. It does not cover other payments like medical benefits, leave encashment, LTA, etc. When we make a full and final settlement, it shall include other payments as well, including gratuity. It is absolutely legal to recover Notice Pay from these amounts whenever an employee resigns without giving notice.
Siva
From India, Chennai
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This reply is in response to Mr. Madhu's posting. The Payment of Wages Act guides the disbursement of wages payable on a monthly basis. It does not cover other payments like medical benefits, leave encashment, LTA, etc. When we make a full and final settlement, it shall include other payments as well, including gratuity. It is absolutely legal to recover Notice Pay from these amounts whenever an employee resigns without giving notice.
Siva
From India, Chennai
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Dear Mr. Pankaj,
In response to your question, we can terminate a probationary employee without showing any cause. For Full and Final settlement in the case of termination, there is no question of deducting one month's notice. If the employee is confirmed, there is a certain procedure to terminate the employee, and the company has to pay the salary for one month.
From India, Hyderabad
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In response to your question, we can terminate a probationary employee without showing any cause. For Full and Final settlement in the case of termination, there is no question of deducting one month's notice. If the employee is confirmed, there is a certain procedure to terminate the employee, and the company has to pay the salary for one month.
From India, Hyderabad
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Full n final settlement.doc