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Kishore PT (Manger)     25 September 2015

Company rule for notice period

Dear Sir,

Can employer force you to serve for total 3 morths notice period even if the employee is ready to compensate for unserved notice period in the form of leaves balance or money?

Employer have mention in the termination policy that "The option of compensating notice period by salary payment is not available"



Learning

 6 Replies

HIRAL THAKKAR (ADVOCATE )     25 September 2015

You need to enter into proper communications for leaving the job without notice period and compensation by way of balance leaves.

Kishore PT (Manger)     25 September 2015

I would like to serve 2 months notice period and balance 1 month buy back in terms of salary or against Balance leaves.

But company policy says that full three months has to be served.

It states as below:

""Notice Period""

Notwithstanding anything contrary contained in the appointment letter or company policies, in case of cessation of employment from either side, it shall be mandatory for a probationer |trainee| confirmed Manager to serve notice period as mentioned in table below. The option of compensating notice period, fully or partially, by way of equivalent salary payment is not available."

Table says that probation / confirmation notice period is 1 month / 3 months.

Thus notice period can be compensated with leave balance or is above statement is violation of standing orders.

Kumar Doab (FIN)     25 September 2015

You have posted that:

---"Thus notice period can be compensated with leave balance or is above statement is violation of standing orders."

 

Does standing orders apply to the establsihment?

Has the company inserted it in writing in appointment letter,HR policy,any rule/policy/communication mentioned to you that standing orders shall apply to you (your designation)?

If yes has the company indicated which standing orders:Certified/Model?

If the company has Certified Standing Orders then does it cover your designation?

 

---"in case of cessation of employment from either side, it shall be mandatory for a probationer |trainee| confirmed Manager to serve notice period as mentioned in table below. "

 

Here the company interpreted that this means ………………..if employee has tendered notice of resignation or employer has issued notice of termination the employee has to serve full notice period? If yes are you aware of any incidence when employer has issued termination order without notice of termination and discharged the employee by tendering notice pay/without tendering notice pay?

 

---“ I would like to serve 2 months notice period and balance 1 month buy back in terms of salary or against Balance leaves.”

The establishment has to prepare FnF statement and compute earned wages, leave encashment as per enactments applicable to establishment or if the leave policy offer superior benefits compared to enactments applicable to establishment, bonus,incentives,reimbursements, notice pay enactments applicable to establishment/employee, etc, and tender balance payment…………..

If the leave policy or any policy provides for adjustment of leave etc against notice pay then employer can not deny/retract from or breach its own policy.

2 months notice period is sufficient for the employer to put its own house in order.

 

If employer is unwilling to accept notice pay in lieu of notice period then what is the penalty in terms of monies it would levy…………………………if employee does not serve 90days notice period?

 

If employer wants to allege and claim loss then it has to level charge and prove it.

 

Thus it is in your interest to first communicate in writing under proper acknowledgment (addressed to appointing authority/MD/Chairman) that you are unable to serve notice period of 90days……………………..and are tendering notice period of  say 60 days………….are willing to tender notice pay of 30 days……………….that may be adjusted in FnF statement, ……………………..and that NO TASKS are pending at your end………………….and routine duties be assigned that can be completed on day to day basis within and upto expiry of notice period tendered by you………………………….and to whom you should handover the charge within and upto expiry of notice period tendered by you against proper acknowledgment on the spot………………………….and ask to supply the acknowledgment of notice of resignation/final resignation, FnF statement, payment of FnF dues, service certificate, relieving letter,Form16 as per correct FnF statement, NOC/NDC, handover of charge etc within and upto expiry of notice period tendered by you i.e dated………………………...

What is this establishment: Commercial, Industrial?

What is its line of business; IT/ITeS?

You are in which state? The reporting office is in which state?

The Redg office is in which state?

 

What is your designation and nature of duties?

Do you have the power to appoint, terminate, sanction leave, increment?

Kishore PT (Manger)     07 October 2015

Thanks Mr. Doab for the reply.

 

Pl find the information in between the lines.

 

"Does standing orders apply to the establsihment? Has the company inserted it in writing in appointment letter,HR policy,any rule/policy/communication mentioned to you that standing orders shall apply to you (your designation)?

 

There is no mention in the appointment letter about the standing order.

 

"If yes are you aware of any incidence when employer has issued termination order without notice of termination and discharged the employee by tendering notice pay/without tendering notice pay?"

 

One such event is to my knowledge but the employee has been force to resign but allowed to be with the company for three months.

 

"If employer is unwilling to accept notice pay in lieu of notice period then what is the penalty in terms of monies it would levy…………………………if employee does not serve 90days notice period?"

 

There is no clause mention in the appointment letter that if employee does not give the required notice period what will happen. The organisation may or will not giving reliving and experience letter. They may abscond the employee. They may not giving FnF to the best of my knowledge.

 

What is this establishment: Industrial?

 

What is its line of business: Manufacturing

 

You are in which state? The reporting office is in which state?: Gujarat

 

The Redg office is in which state? Gujarat

 

What is your designation and nature of duties? Sr. Manager / Development of process

 

Do you have the power to appoint, terminate, sanction leave, increment?: No

 

I hope above information will be of some help to guide me.

Kumar Doab (FIN)     07 October 2015

You have posted that:

"

What is your designation and nature of duties? Sr. Manager / Development of process

Do you have the power to appoint, terminate, sanction leave, increment?: No

 

What is this establishment: Industrial?

 

What is its line of business: Manufacturing

 

You are in which state? The reporting office is in which state?: Gujarat

 

The Redg office is in which state? Gujarat"

 

You may determine the office/Div. where you are located is covered by which Act; Factory Act, Gujarat Shops and Estbs Act............................and that your designation is covered by the def. of 'Workman' as in ID Act and 'Employee' as in Gujarat Shops and Estbs Act................and look into the Act for guidelines on notice period/pay.........................if you are covered by these enactments then notice period/pay asin  the Act shall prevail upon T&C in appointment letter.

 

You may also confirm if standing order apply to your establishment (or it has been exempted) and if standing orders are certified.............................

If standing orders are applicable and are certiified then check if your designation is covered and this being intrumentof law shall prevail upon T&C in appointment letter.

 

If standing orders are applicable and are not certiified then check if your designation is covered by the def. of 'Workman' ..........................and if covered  this being statue shall prevail upon T&C in appointment letter.

 

An able Labor Law consultant/Service Matters lawyer/Law firm specializing in labor-service matters can help you to determine everything.

 

Assuming that you are not at all covered then you may look into the service codnhitions/service ruyles/precedences in comapny and judgments in similar cases.......................

 

Your counsels may opine that you may submit notice of resignation ( afew tips on what you must insert in it has already been shared) and your intent to good offices of appointing authority,MD (avoid HR) under proepr acknowledgment....................................and make an noffer to tender notice pay @ month's wages.

 

Let the good offices revert to you.

Based on the reply you your counsels can advise you further.YOur counsels may even advise to ask the company to determine if it wants mnore than month's wages (and why)!

 

Forced resignation can be withdrawn at any time.It is offence.It may have to be proved.It can be deemed termination.Your friend had 3 months time to agitate on forced resigantion.

 

If you have resigned under proepr acknowledgment then it is not absenting/abstaining/absconding.Falsification of record is offence.Employee should not leave any communication of the company unreplied and must reply under proepr acknowledgment preferably by Redg. Post and draft the reply in consultation with his lawyer.

 

The company may claim damages/loss and may have to prove it.

 

Service certificate has to be supplied to all employees.

 

Relieving letter signifies that nothing is due towards employee. If you can establish nothing is due then you can stake claim to it.

 

FnF wages should also be paid max. by usual pay day.

 

Unpaid wagesd/emoulments are debt on employer and employee can approach courts of law with winding up petition.............................and even AVP,CEO have succeeded.

 

In your case it is emphasised that you may approach an able cousnel and build favorable and irrefutable record in writing under proper acknowledgment for use at appropriate time and  in suitable forum.

 

You may also firm up your T&C with prospective employer in writng on record so that your next employers absorbs you on the strength of copy of notice/resignation alone..........................

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Moana Lee   24 December 2019

Penalty is the sort of punishment that is occurred in most of the games but here it is in awards. Thus you can use My Assignment Writing so that you will get the guidance from the topmost workers of that place.


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