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
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
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
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
Response:
In the scenario described, where an employee not covered by the ID Act has been dismissed for misconduct following disciplinary action, the obligation to pay notice pay in lieu of the notice period may not apply. Notice pay is typically associated with termination simpliciter, which is distinct from dismissal due to misconduct. In such cases, where the termination is a result of disciplinary proceedings, the payment of notice pay is generally not mandated.
It is advisable for the management to ensure that the company's policy guidelines explicitly address the issue of notice pay for dismissed employees. By having a clear and comprehensive policy in place, potential ambiguities or disputes regarding notice pay can be minimized.
For specific legal guidance on this matter, it is recommended to consult relevant labor laws and regulations applicable in the jurisdiction, ensuring compliance with statutory requirements and protecting the interests of both the employer and the employee.
Practical Steps:
- Review the employee's appointment order and relevant company policies to ascertain any clauses related to cessation of service and notice pay.
- Seek advice from legal counsel or HR experts familiar with labor laws to ensure compliance and mitigate any potential risks.
- Communicate effectively with the employee involved, providing clarity on the reasons for dismissal and any associated entitlements or compensations as per the company's policies.
- Document all steps taken, including the disciplinary process, communication with the employee, and any decisions made regarding notice pay, to maintain a comprehensive record of the situation.
From India, Gurugram
In the scenario described, where an employee not covered by the ID Act has been dismissed for misconduct following disciplinary action, the obligation to pay notice pay in lieu of the notice period may not apply. Notice pay is typically associated with termination simpliciter, which is distinct from dismissal due to misconduct. In such cases, where the termination is a result of disciplinary proceedings, the payment of notice pay is generally not mandated.
It is advisable for the management to ensure that the company's policy guidelines explicitly address the issue of notice pay for dismissed employees. By having a clear and comprehensive policy in place, potential ambiguities or disputes regarding notice pay can be minimized.
For specific legal guidance on this matter, it is recommended to consult relevant labor laws and regulations applicable in the jurisdiction, ensuring compliance with statutory requirements and protecting the interests of both the employer and the employee.
Practical Steps:
- Review the employee's appointment order and relevant company policies to ascertain any clauses related to cessation of service and notice pay.
- Seek advice from legal counsel or HR experts familiar with labor laws to ensure compliance and mitigate any potential risks.
- Communicate effectively with the employee involved, providing clarity on the reasons for dismissal and any associated entitlements or compensations as per the company's policies.
- Document all steps taken, including the disciplinary process, communication with the employee, and any decisions made regarding notice pay, to maintain a comprehensive record of the situation.
From India, Gurugram
CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Dinesh Divekar
Educative