Notice period buyout of the candidate will be in which expense head? And how to give the new employee a reimbursement?
From India, Mumbai
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1From India, Mumbai
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Notice period buyout is, in most companies, treated as part of "Recruitment Expenses." As it is to onboard talent on the fast track, it is given treatment as TA Expenses, and the budget is taken under the Hiring Manager's Budget in many big companies, which is most appropriate.
Such reimbursements need to be handled with care, as in many cases, they are paid along with the first-month salary, and once received, the talent quits or leaves the job abruptly. It is important to have clear documentation stating that the reimbursement will be done in three parts/instalments: one along with the 2nd-month salary, the next in the 4th-month salary, and the last in the 6th-month salary. If someone leaves the service within one year, the said reimbursement will be deducted up to 75%, etc.
From India, Chennai
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Such reimbursements need to be handled with care, as in many cases, they are paid along with the first-month salary, and once received, the talent quits or leaves the job abruptly. It is important to have clear documentation stating that the reimbursement will be done in three parts/instalments: one along with the 2nd-month salary, the next in the 4th-month salary, and the last in the 6th-month salary. If someone leaves the service within one year, the said reimbursement will be deducted up to 75%, etc.
From India, Chennai
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Expense Reimbursement Policy.doc