But no where is written in the Appointment Letter that when Company should pay the notice pay to the terminate. That is there that in case Company terminate services of the employee, he should be paid 3 months notice pay or vice versa.
Is there any law that when full and final settlement would be done of terminated emloyee ? As far as i recollect with my readings in the past it should be settled within 24 hrs of termination of the services of the employee?
Pl give ur valuable comments
Regards
Subhash
From India, New Delhi
1Is there any law that when full and final settlement would be done of terminated emloyee ? As far as i recollect with my readings in the past it should be settled within 24 hrs of termination of the services of the employee?
Pl give ur valuable comments
Regards
Subhash
From India, New Delhi
Hi Subhash You are right. I don’t think any reason for paying the employee after 3 months. Regards Sujata
From India, Faridabad
From India, Faridabad
It is not correct to ask the employee to sit at home and pay him the salary. It is better to get rid off him, by paying/adjusting the necessary dues from/to the company.
But , yes, we have to pay him the notice pay- is the letter offer states so.
Regards
Sathyamoorthy iyer
From India, Madras
But , yes, we have to pay him the notice pay- is the letter offer states so.
Regards
Sathyamoorthy iyer
From India, Madras
Hi Subash,
According to me the payment should be made one time & at the earliest possible time from the time of termination.
However its left to the company to decide the earliest time for this settlement, as a non-productive employee is always unfavorable in the working environment. As indicated by others this can be harmful as well.
Hence check for the Paid & Statutory leave or any dues liable so that the employee can be taken off the rolls.
Regards,
Abhi
From India
According to me the payment should be made one time & at the earliest possible time from the time of termination.
However its left to the company to decide the earliest time for this settlement, as a non-productive employee is always unfavorable in the working environment. As indicated by others this can be harmful as well.
Hence check for the Paid & Statutory leave or any dues liable so that the employee can be taken off the rolls.
Regards,
Abhi
From India
Dear Subhash,
The exact clause of termination is either 3 months notice or payment in lieu of Notice. So, for example: if a Company wants to terminate an employee from 1st March,2000 then he must be served the notice latest by 1st December, 1999. In case the Company gives notice after that date then they must compensate the employee with the shortfall of Notice Period by pay.
So, if the notice is served on 1st January, 2000 then he must be paid one month's pay (compensate for the shortfall in Notice Period of one moth).
Hence, in your case, the Company can always issue such a Notice and can make him sit at home and pay his salary. The only legal bar is that the employee must be deemed to be present and his physical absence from office must not be treated or adjusted with his earn leave balance.
For example if at the date of issue of termination notice his accumulated leave is 90 days, and an employee earns 1 day leave for every month worked(say), then the Company must pay him 93 days earned leave.
If the Company deducts 90 days as Leave Taken, then that is illegal.
The other problem is with payment of salary, the employee must be paid monthly salary till the date he is terminated. So, it is ok for the Company to make him sit at home but he must be paid salary on the monthly basis. Non payment will result in violation of contract of Employment.
Regards,
SC
From India, Thane
The exact clause of termination is either 3 months notice or payment in lieu of Notice. So, for example: if a Company wants to terminate an employee from 1st March,2000 then he must be served the notice latest by 1st December, 1999. In case the Company gives notice after that date then they must compensate the employee with the shortfall of Notice Period by pay.
So, if the notice is served on 1st January, 2000 then he must be paid one month's pay (compensate for the shortfall in Notice Period of one moth).
Hence, in your case, the Company can always issue such a Notice and can make him sit at home and pay his salary. The only legal bar is that the employee must be deemed to be present and his physical absence from office must not be treated or adjusted with his earn leave balance.
For example if at the date of issue of termination notice his accumulated leave is 90 days, and an employee earns 1 day leave for every month worked(say), then the Company must pay him 93 days earned leave.
If the Company deducts 90 days as Leave Taken, then that is illegal.
The other problem is with payment of salary, the employee must be paid monthly salary till the date he is terminated. So, it is ok for the Company to make him sit at home but he must be paid salary on the monthly basis. Non payment will result in violation of contract of Employment.
Regards,
SC
From India, Thane
Dear Subhash,
Even if there is no written commitment on either part on the notice period settlement process, it is default that whenever there is a termination happening the final settlement has to be done at the earliest possible for the terminated employee to be atleast happy to that end.
I do agree with what SC has stated that if there is a three month notice period to be served and if we ask the terminated employee to sit at home rather than come to office, then the terminated employees pay has to be paid every month till the final date of his notice. On the other hand, settle the amount once and for all and relieve the employee with full benefits due to him at the end of the first month in the notice period.
No company can stop a terminated employee's notice period pay without any valid reason. If the pay is being stopped, then the terminated employee can either ask for a reason for the stoppage or approach the labour commissioner for the same.
Hope this clarifies your doubt.
Samba.
From India, Hyderabad
Even if there is no written commitment on either part on the notice period settlement process, it is default that whenever there is a termination happening the final settlement has to be done at the earliest possible for the terminated employee to be atleast happy to that end.
I do agree with what SC has stated that if there is a three month notice period to be served and if we ask the terminated employee to sit at home rather than come to office, then the terminated employees pay has to be paid every month till the final date of his notice. On the other hand, settle the amount once and for all and relieve the employee with full benefits due to him at the end of the first month in the notice period.
No company can stop a terminated employee's notice period pay without any valid reason. If the pay is being stopped, then the terminated employee can either ask for a reason for the stoppage or approach the labour commissioner for the same.
Hope this clarifies your doubt.
Samba.
From India, Hyderabad
Thanks members -for the details. They were really informative.
However, I hvae this problem- We are just 5 months old organisation, into telecom sales force management. Though we have the 2 months notice clause for resignations/terminations, people who are resigning rarely follow this- and suddenly they stop reporting for duty.
We are not able to collect this notice pay.. What can be done in these cases?
Regards
Sathya
From India, Madras
However, I hvae this problem- We are just 5 months old organisation, into telecom sales force management. Though we have the 2 months notice clause for resignations/terminations, people who are resigning rarely follow this- and suddenly they stop reporting for duty.
We are not able to collect this notice pay.. What can be done in these cases?
Regards
Sathya
From India, Madras
Dear Sathya,
You can follow any of the following methods:
1) If the employees are leaving in the middle of the month, you can probably stop their salary from being paid and adjust the same towards their notice period pay.
2) If the employee leaves right after the salary is credited, send a mail to them saying that they would have to fulfill the notice period clause. If they are not responding, which they normally will not as per my experience, you can add an additional liner saying that if they do not respond to the mail within 10 to 15 days time, you would be proceeding legally for recovering the notice period settlement dues (which, believe me, works most of the time even if you do not intend to proceed legally).
3) Forget about the people who have left and concentrate on the ones left and the ones whom you would be recruiting henceforth.
All the best for your choice of action.
Samba.
From India, Hyderabad
You can follow any of the following methods:
1) If the employees are leaving in the middle of the month, you can probably stop their salary from being paid and adjust the same towards their notice period pay.
2) If the employee leaves right after the salary is credited, send a mail to them saying that they would have to fulfill the notice period clause. If they are not responding, which they normally will not as per my experience, you can add an additional liner saying that if they do not respond to the mail within 10 to 15 days time, you would be proceeding legally for recovering the notice period settlement dues (which, believe me, works most of the time even if you do not intend to proceed legally).
3) Forget about the people who have left and concentrate on the ones left and the ones whom you would be recruiting henceforth.
All the best for your choice of action.
Samba.
From India, Hyderabad
Dear Shobha,
In my opinion the company has decided to terminate. So the question of taking PL/EL does not arise, yes his/her balance leave can be encashed at te time of his final settlement.
thanks
rrtpan
In my opinion the company has decided to terminate. So the question of taking PL/EL does not arise, yes his/her balance leave can be encashed at te time of his final settlement.
thanks
rrtpan
Dear Friends,
Thanks a lot for your informative replies and very active participation.
I can conclude that if some body is being terminated by the Company,he/she should be paid immediately to settle his/her account. In case he/she is being asked to sit at home, i am sure that Company will not give any such written communication to the employee that he/she has to sit at home. In this case if intention of the management is not good they can blame that bla bla empoyee is not attending his/her duties since...........so we are considering that he/she has left the company and they will not be bound to pay notice pay.
If any such case arise with any body then he/she should ask the Company to give him in writing as he/she has to sit at home and Company will pay him/her on monthly basis.
In the case that employees are leaving the Company and they are not full filling with the requirement of the appointment letter, they are liable to service legal notice.
Regards
Subhash
From India, New Delhi
Thanks a lot for your informative replies and very active participation.
I can conclude that if some body is being terminated by the Company,he/she should be paid immediately to settle his/her account. In case he/she is being asked to sit at home, i am sure that Company will not give any such written communication to the employee that he/she has to sit at home. In this case if intention of the management is not good they can blame that bla bla empoyee is not attending his/her duties since...........so we are considering that he/she has left the company and they will not be bound to pay notice pay.
If any such case arise with any body then he/she should ask the Company to give him in writing as he/she has to sit at home and Company will pay him/her on monthly basis.
In the case that employees are leaving the Company and they are not full filling with the requirement of the appointment letter, they are liable to service legal notice.
Regards
Subhash
From India, New Delhi
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