Dear Chanchal
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A company which treats its employees fairly, will not take undue advantage of the notice given by its employee by terminating his services much earlier than the Notice Period and deny him salary for the subsequent period culminating on the effective date of separation.
If circumstances so warrants, a company may dispense with the services of the employee prior to the last day of Notice, and shall pay him compensation in lieu of notice.
In such a case, the employee is at liberty to join elsewhere. Please note that the question of Dual Employment does not arise here, as the employee stands relieved.
Moreover, what he gets is NOT "salary" for any duty performed; BUT "compensation" in lieu of Notice. By no stretch of imagination; it can be deduced that the employee is guilty of Dual Employment.
I hope, the above has been of help to you. Do feel free to seek further clarifications, if you need to.
Warm regards.
From India, Delhi
1426You can search CiteHR by using the Search tools on top of the page, for previous discussions on this issue.
For your convenience, I am providing the link, for the search query :
https://www.citehr.com/results.html?...%23usercptools
A company which treats its employees fairly, will not take undue advantage of the notice given by its employee by terminating his services much earlier than the Notice Period and deny him salary for the subsequent period culminating on the effective date of separation.
If circumstances so warrants, a company may dispense with the services of the employee prior to the last day of Notice, and shall pay him compensation in lieu of notice.
In such a case, the employee is at liberty to join elsewhere. Please note that the question of Dual Employment does not arise here, as the employee stands relieved.
Moreover, what he gets is NOT "salary" for any duty performed; BUT "compensation" in lieu of Notice. By no stretch of imagination; it can be deduced that the employee is guilty of Dual Employment.
I hope, the above has been of help to you. Do feel free to seek further clarifications, if you need to.
Warm regards.
From India, Delhi
Mr. Chanchal,
Your question is very valid. As per the company rules it is two months for both the parties, if the out going employee is ready to leave early then it is a win win situation for both ie., the employer is ready to relieve early after completing the required formalities and the employee is also ready to get relieved and join early the new organization where in the new employer has no issue in inducting the employee early than the actual date of joining otherwise the employee has every right to continue as per the laid down rules and the organization should allow him to work till the end of his notice period.
In general if the company and the employee accepts it is a win win situation,normally the company feel once an employee put up his papers and able to replace then they will opt that the outgoing employee leaves at the earliest but it should not be at the cost of the employee (ie., employee may be be able to earn the salary for the rest of period )
With best regards - kameswarao
From India, Hyderabad
Your question is very valid. As per the company rules it is two months for both the parties, if the out going employee is ready to leave early then it is a win win situation for both ie., the employer is ready to relieve early after completing the required formalities and the employee is also ready to get relieved and join early the new organization where in the new employer has no issue in inducting the employee early than the actual date of joining otherwise the employee has every right to continue as per the laid down rules and the organization should allow him to work till the end of his notice period.
In general if the company and the employee accepts it is a win win situation,normally the company feel once an employee put up his papers and able to replace then they will opt that the outgoing employee leaves at the earliest but it should not be at the cost of the employee (ie., employee may be be able to earn the salary for the rest of period )
With best regards - kameswarao
From India, Hyderabad
Dear Chanchal,
In simple terms, notice period is a binding equally on employee and employer as well. Employer is not exempt to violate any legal condition of the agreement and does not enjoy arbitrary power not to abide by the agreement conditions.
Here the employee has given notice of 2 months in terms of the company regulations and the conditions of an a legal contract in the shape of a mutual agreement. If the company wants to relieve the employee before the expiry of notice period, the company is doing so to see its own convenience and is not as a favour to the employee. The company is legally bound to pay proportionately the compensation to the employee for the period that falls short of the notice period.
Suppose, if the employee has already conveyed his intention to the new employer to join after 2 months' period in compliance with the company's rules and regulations, and if the company discharges him after 15 days, without paying any compensation, the employee would remain unemployed for one and half month with no fault of his, but on account of violation of its own rules by the company. He can legally sue the company for compensation including cost of the law suit that can cause loss of image also of the company besides bearing additional costs and the rigour of the legal formalities.
Even, as a matter of common sense, had the employee asked the company to discharge him before the expiry of the notice period, company would not have exempted him from paying the proportionate amount equal to the period short of notice period. Similarly, the company is also liable to pay the compensation to its employee if it discharges him before the notice period.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
In simple terms, notice period is a binding equally on employee and employer as well. Employer is not exempt to violate any legal condition of the agreement and does not enjoy arbitrary power not to abide by the agreement conditions.
Here the employee has given notice of 2 months in terms of the company regulations and the conditions of an a legal contract in the shape of a mutual agreement. If the company wants to relieve the employee before the expiry of notice period, the company is doing so to see its own convenience and is not as a favour to the employee. The company is legally bound to pay proportionately the compensation to the employee for the period that falls short of the notice period.
Suppose, if the employee has already conveyed his intention to the new employer to join after 2 months' period in compliance with the company's rules and regulations, and if the company discharges him after 15 days, without paying any compensation, the employee would remain unemployed for one and half month with no fault of his, but on account of violation of its own rules by the company. He can legally sue the company for compensation including cost of the law suit that can cause loss of image also of the company besides bearing additional costs and the rigour of the legal formalities.
Even, as a matter of common sense, had the employee asked the company to discharge him before the expiry of the notice period, company would not have exempted him from paying the proportionate amount equal to the period short of notice period. Similarly, the company is also liable to pay the compensation to its employee if it discharges him before the notice period.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
While endorsing the views of Mr.Giri, I would like to add that if employee wish to continue or demands pay in lieu of notice period, management has to pay or allow him to work till the expiry of notice period.
bye
agdesai
From India, Madras
bye
agdesai
From India, Madras
An employee resigns from the services of a Co. since he has found a better job.
As per terms of his appointment letter he is obliged to give to the company two months' notice at the end of which he will be relieved.
It abundantly clear that the employee is willing to work for two months and has also complied with the terms of his employment with the Co. in giving two months' notice.
It is the employer Co. whch has decided to cut short the notice given by the employee and relieve him earlier.
Under these circumstances the Co. is obliged to pay salary in lieu of the balance notice period.
Lets consider the flip side.
The employee under the above given circumstances gives to the Co. only 15 days' notice and expresses his desire to leave at the end of the 15days' notice.
You can bet that the employer Co. will most certainly ask the employe to pay salary in lieu of the shortfall in the notice period and adjust the corresponding amount in his Full & Final Settlement.
The right answer to the query is that the employer Co. is obliged to pay salary for the balance notice period.
Vasant Nair
HR Advisor
From India, Mumbai
As per terms of his appointment letter he is obliged to give to the company two months' notice at the end of which he will be relieved.
It abundantly clear that the employee is willing to work for two months and has also complied with the terms of his employment with the Co. in giving two months' notice.
It is the employer Co. whch has decided to cut short the notice given by the employee and relieve him earlier.
Under these circumstances the Co. is obliged to pay salary in lieu of the balance notice period.
Lets consider the flip side.
The employee under the above given circumstances gives to the Co. only 15 days' notice and expresses his desire to leave at the end of the 15days' notice.
You can bet that the employer Co. will most certainly ask the employe to pay salary in lieu of the shortfall in the notice period and adjust the corresponding amount in his Full & Final Settlement.
The right answer to the query is that the employer Co. is obliged to pay salary for the balance notice period.
Vasant Nair
HR Advisor
From India, Mumbai
Please don't mind, if you are an HR Manager, you really need to know the common practices of HR. A negative attitude of an HR man can not only jeopardise his own position but also some times make the company pay dearly for wrong practices adopted by an HR man.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
Dear Manish,
Until and unless there is any formal appointment letter and a legally entered in to an agreement between an employer and employee, the company does not have any legal right to deduct any notice period pay. When there is no existence of any notice period on record of the company, the question of notice period does not arise at all?
If the company has deducted any such notice period pay from the salary of the emplyee, he can take recourse to legal action against the company to ask for the deducted amount.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
Until and unless there is any formal appointment letter and a legally entered in to an agreement between an employer and employee, the company does not have any legal right to deduct any notice period pay. When there is no existence of any notice period on record of the company, the question of notice period does not arise at all?
If the company has deducted any such notice period pay from the salary of the emplyee, he can take recourse to legal action against the company to ask for the deducted amount.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
Dear Lalit,
I wonder, if you really belong to HR community! If you believe in the theory of being a puppet in the hands of a company, you are really rendering a disservice to not only the employees, rather to the company also.
You must know, any wrong advice on hit and trial basis can lead to wrong decisions. Ms. Chanchal has asked the advice in all her sincerity and seriousness, but your advice is not sincere.
However, if you are an HR personnel, you really need to know the common practices of HR. A negative attitude of an HR man can not only jeopardise his own position but also some times make the company pay dearly for wrong practices adopted by an HR man.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
I wonder, if you really belong to HR community! If you believe in the theory of being a puppet in the hands of a company, you are really rendering a disservice to not only the employees, rather to the company also.
You must know, any wrong advice on hit and trial basis can lead to wrong decisions. Ms. Chanchal has asked the advice in all her sincerity and seriousness, but your advice is not sincere.
However, if you are an HR personnel, you really need to know the common practices of HR. A negative attitude of an HR man can not only jeopardise his own position but also some times make the company pay dearly for wrong practices adopted by an HR man.
PS Dhingra
Transformation & Vigilance Management Consultant
Dhingra Consultancy Group
New Delhi
[dcgroup1962@gmail.com]
From India, Delhi
Dear Mr. Dhingra,
Excellent suggestion and also guidance for few of members who are shooting message just sake of answering like we do on social chat sites. It's so important that one should answer things only when has really practiced or have knoweldge about the same and make this blog a Guide for all HR practices especially on Legal matters.
The Question has really opened an issue which is being practiced by many companies in India with their vested interests. The Comissioner of Labor has pratically played no role in their duties by taking the companies on task on such issues. Besides in most cases these cases are seen more aptly incase of our Software engineers and Sr staff members, that very few approach the labor office or court of law for justice.
I hope our HR faternity will take lead in such issues.
Ukmitra
From Saudi Arabia, Riyadh
Excellent suggestion and also guidance for few of members who are shooting message just sake of answering like we do on social chat sites. It's so important that one should answer things only when has really practiced or have knoweldge about the same and make this blog a Guide for all HR practices especially on Legal matters.
The Question has really opened an issue which is being practiced by many companies in India with their vested interests. The Comissioner of Labor has pratically played no role in their duties by taking the companies on task on such issues. Besides in most cases these cases are seen more aptly incase of our Software engineers and Sr staff members, that very few approach the labor office or court of law for justice.
I hope our HR faternity will take lead in such issues.
Ukmitra
From Saudi Arabia, Riyadh
Dear Mr. Dhingra, ukmitra, Mr. Nair, kameswarao and other members
I appreciate your sincere efforts in demystifying the issue involved and pointing out the correct and fair line of action.
I am sure, it will help both, freshers and experienced, HR professionals to discharge their responsibilities in a fair and professional manners.
I hope other members who post their views, do so after considered deliberations and research; rather than simply reacting without any substantial viewpoint.
Looking forward to your continued guidance and benevolent association.
Warm regards.
From India, Delhi
I appreciate your sincere efforts in demystifying the issue involved and pointing out the correct and fair line of action.
I am sure, it will help both, freshers and experienced, HR professionals to discharge their responsibilities in a fair and professional manners.
I hope other members who post their views, do so after considered deliberations and research; rather than simply reacting without any substantial viewpoint.
Looking forward to your continued guidance and benevolent association.
Warm regards.
From India, Delhi
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