Job termination clause clarification
vaibhav
(Querist) 22 November 2013
This query is : Resolved
Dear Sir,
I am confused on the meaning of below clause
Please explain.("at the bank's discretion")
Job Termination clause
"after confirmation either party will be required to give 3 months notice or salary in lieu of notice at the bank's discretion"
Thanks..
vaibhav
(Querist) 23 November 2013
Pleas explain how it works.
Sudhir Kumar, Advocate
(Expert) 23 November 2013
You appear to be newly appointed and confused.
at this stage of service do not pray that you need to know these details
only .0001% employees have to face such situation of getting terminated in probation.
Ms.Nirmala P.Rao
(Expert) 23 November 2013
Of course during probation-termination clause operates subject to bank's discretion. But, after completion of probation if Banks action(discretion) is arbitrary, highhanded and vitiated by malafides etc, then Courts would generally interpret such clauses in favor of the terminated employee or to the benefit of terminated employee. I mean courts would come to the rescue of the victim employees if employers' action of termination smacks of malafides, arbitrariness and highhandedness etc. If you wish to thank me for this reply please click the thank you button on my profile.
Rajendra K Goyal
(Expert) 23 November 2013
After the service is confirmed i.e. after probation, if employee want to leave or the employer has to terminate the job in such case three months notice or pay in lieu is to be given. However, Bank (employer) may waive the condition at its discretion.
malipeddi jaggarao
(Expert) 23 November 2013
"after confirmation either party will be required to give 3 months notice or salary in lieu of notice at the bank's discretion"
Here it is to be understood as follows:
After confirmation of the employee
if the employee wishes to leave the job he should give 3 months notice. However, instead of notice, he can deposit equivalent salary of 3 months if the Bank's agree for such deposit.
Like-wise if the Bank wishes to terminate the employee, it can give 3 months notice or 3 months salary as the bank thinks fit. Here the employee has no choice. If the bank serves 3 months notice, the employee can not ask for salary in lieu of notice. Hope this is clear now.
At the same time, I agree with Mr.Sudhirkumar. You should not bother about these clause at this time.
vaibhav
(Querist) 23 November 2013
Thanks for all the experts.
I was asking this question because i am leaving my company on a notice period of 1 month and my supervisor is saying that they'll hold my relieving letter,if i'll not serve the complete 3 months time.
Can a company hold the relieving letter basis on this clause?
ajay sethi
(Expert) 23 November 2013
it is as per discretion of your employer
you would be required to give 3 months notice as per terms of your appointment letter . if you dont serve . the notice period company may hold your relieving letter
vaibhav
(Querist) 23 November 2013
@Ajay sir,
Even in the case if i am ready to pay salary in lieu of notice period for the rest of the notice period(for 2 months)?
ajay sethi
(Expert) 23 November 2013
it is for your employer to decide whether to accept salary in lieu of notice period
Rajendra K Goyal
(Expert) 23 November 2013
Depends upon your employer to accept your proposal or not as your agreement does not have any clause of such adjustment.
T. Kalaiselvan, Advocate
(Expert) 23 November 2013
the notice period or money in lieu applies to both the sides, to be interpreted.
malipeddi jaggarao
(Expert) 24 November 2013
Mr.Vaibhav, don't try to extract reply which is suitable to your wishes. I already explained the discretion clause above and as per the clause it is for the company to use its discretion either to ask you to serve for full 3 months notice period or to accept equal amount of salary in lieu of notice period.
Devajyoti Barman
(Expert) 25 November 2013
query is solved..do not drag it anymore.
