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Dear Experts,

One of our employees, who is out of the purview of the ID Act, was dismissed from service after due process of disciplinary action. In this issue, is the management liable for payment of notice pay in lieu of the notice period in terms of the appointment order with respect to a clause of cessation of service? The company's policy guidelines are silent about the notice of pay in the case of dismissed employees. Please clarify.

Thanks,
V. Sridharan

From India, Mumbai
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Notice Pay and Termination

Notice pay is applicable only for termination simpliciter. Dismissal from service for any misconduct will not come under termination simpliciter. Therefore, if the termination was followed by any disciplinary procedures, there is no need to pay notice pay.

From India, Kannur
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  • Dinesh Divekar
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