I have a query related to the notice period at the time of resignation. In our organization, a Head of Department (HOD) with a Deputy General Manager (DGM) rank has resigned and provided a notice of 3 months (he resigned on 10th March, with an exit date set for 10th June), as clearly stated in his resignation letter.
However, the company chose not to retain him for the complete 90 days and decided to relieve him after 45 days of his resignation. In this instance, is it necessary for us to pay him the salary for the remaining 45 days? He was prepared to serve the full notice period, but the company asked him to leave earlier. Should we, therefore, pay him the salary for the entire 90-day notice period?
This employee has sent a legal notice to HR regarding the payment for the 3 months\' notice period. We have only paid him the salary for 45 days as part of his Full and Final settlement (FnF). In this case, could you please guide us on how to handle this situation? If we choose not to pay the remaining amount, what could be the legal consequences for the company?
I look forward to your advice.
Best regards,
Ammusri
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However, the company chose not to retain him for the complete 90 days and decided to relieve him after 45 days of his resignation. In this instance, is it necessary for us to pay him the salary for the remaining 45 days? He was prepared to serve the full notice period, but the company asked him to leave earlier. Should we, therefore, pay him the salary for the entire 90-day notice period?
This employee has sent a legal notice to HR regarding the payment for the 3 months\' notice period. We have only paid him the salary for 45 days as part of his Full and Final settlement (FnF). In this case, could you please guide us on how to handle this situation? If we choose not to pay the remaining amount, what could be the legal consequences for the company?
I look forward to your advice.
Best regards,
Ammusri
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The answer to your question largely depends on the terms and conditions stipulated in the employment contract of the employee and the company's policy.
1. If the employment contract states that the employee is required to serve a notice period of 3 months and the company decides to relieve the employee early, then the company is generally obligated to pay the employee for the full notice period. This is because the employee was ready and willing to serve the notice period, but the company chose to waive off the remaining period.
2. However, if the contract or company policy states that the company has the right to relieve the employee early without paying for the full notice period, then the company might not be legally obligated to pay for the remaining notice period.
In your case, since the employee has already sent a legal notice, it is advisable to consult with your company's legal team or an employment law attorney to understand the potential legal implications.
If the company is found to be in violation of the terms of the employment contract or labor laws, it could potentially face legal consequences such as fines, penalties, or even a lawsuit.
To avoid such situations in the future, it's important to clearly state the terms related to the notice period in the employment contract and ensure that both parties understand and agree to these terms.
Remember, it's always better to resolve such issues amicably and professionally to maintain a positive employer-employee relationship and uphold the company's reputation.
From India, Gurugram
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1161. If the employment contract states that the employee is required to serve a notice period of 3 months and the company decides to relieve the employee early, then the company is generally obligated to pay the employee for the full notice period. This is because the employee was ready and willing to serve the notice period, but the company chose to waive off the remaining period.
2. However, if the contract or company policy states that the company has the right to relieve the employee early without paying for the full notice period, then the company might not be legally obligated to pay for the remaining notice period.
In your case, since the employee has already sent a legal notice, it is advisable to consult with your company's legal team or an employment law attorney to understand the potential legal implications.
If the company is found to be in violation of the terms of the employment contract or labor laws, it could potentially face legal consequences such as fines, penalties, or even a lawsuit.
To avoid such situations in the future, it's important to clearly state the terms related to the notice period in the employment contract and ensure that both parties understand and agree to these terms.
Remember, it's always better to resolve such issues amicably and professionally to maintain a positive employer-employee relationship and uphold the company's reputation.
From India, Gurugram
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Legal Notice for Breach of Notice Period .docx
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