Divya,
You are right.
Mr. Rao has given valuable advice. Kindly follow it.
Pls share some more information.
You are in which state?
The redg. office/HO of the company is in which state?
Such matters are best resolved by applying goodwill, rapport, and exceptinal levels of persuasion, persistence, negotiation, reasoning skills.
At the same time employee should build favorable written record and collect copies at keep in personal file at home.
You may submit notice of resignation addressed to good offices of your appointing authority, MD, Chairman, Company Secretary and must mention that your effective date of resignation is dated…………the notice pay as per clause number………..in appointment letter dated…………issued to you……….towards shortfall in notice period may be adjusted in FNF statement/settlement or is enclosed herewith by cheque number ………..dated………..drawn on ………..for Rs………(as suitable to you) and supply the notice and cheque by redg. post. You may avoid speed post/courier.
You may also add that you have completed all tasks on hand and nothing is pending at your end and now onwards routine work may be allotted to you which can be completed within and up to your last day in office/effective date of resignation i.e. dated………………and all concerned personnel may be advised to ensure smooth handover of charge and company property within and up to your last day in office as mentioned above…….
You may continue to issue reminders periodically to good offices and thus remind them to ensure smooth handover of charge. On the last day you may submit final resignation quotinfg refrence to notice of resignation and subsequent reminders.
If next employer is buying out the notice period and you tender notice pay to current employer by cheque and the notice pay is not adjusted in FNF statement you may be subjected to double taxation. Therefore you may mention that the FNF should reflect adjustment of notice pay recovered from you and Form 16 may be issued as per FNF statement showing adjustment of notice pay.
Resignation can be without permission or notice.
“Does the clause on termination by company specify it shall be the choice of the employee to accept notice pay in lieu of notice period, if employer initiates termination of employment?”
If NOT, it implies employer has the right to decline acceptance of notice pay in lieu of notice period while the employee does not have this right.
Any policy in the larger interest and beneficial to both employer and the employee has the sanction of law as otherwise it will be easily termed as arbitrary.
This arbitrary clause hampers your interest in securing another better opportunity when it arises. The next employer may not wait for long period of 90 days……….
The 90 days notice period is obviously for the benefit of employer.
The T&C quoted by you does not imply that the company has option to refuse notice pay.
Rather as per T&C inserted in appointment letter by the company can not refuse to accept notice pay as it explicitly specifies that it is either notice or notice pay and doesn’t give the company the discretion to accept notice pay or decline it!!!!!!!!!
Let us look at other perspective:::::
Termination/separation is initiated either by employee or employer.
The party to the contract of employment initiating termination of the contract has to tender notice and choose period of notice. If it is lesser than the notice period inserted in the contract the party has to compensate the other party. Here the compensation is already inserted in the contract as “notice pay”. This is gthe maximum amount of compensation. Thus there is no ambiguity or confusion.
If the task of the Employee initiating resignation (separation/termination) are not properly handed over due to which the Employer is going to have some loss Financial or any other Loss, in that case if the employee who has initiated Resignation is not interested/agreeable/inclined to indemnify/compensate the employer then the Employer may ask Resigned Employee to Serve Notice Period.
The one month long period of notice is sufficient for the employer to designate replacement and put his house in order. The tasks assigned to resigned employee can be handed over to designated replacement, colleagues, HOD and others……….
Notice pay should be ideally @ Basic pay + DA as employer would disburse Bonus, OT, encashment of paid leave, Gratuity etc at this rate.
In addition to the Industrial Disputes Act, 1947, several states also provide for compliances under the Shops & Establishment Acts, Standard Standing Orders Act………….thus the employee covered under these enactments would be protected up to that extent……..
Notice period is part of service conditions. Service conditions are stated in certified standing orders of the company, appointment letter, and also in shops and establishments act of the state. The service conditions stated in standing orders can not be negated to employee in appointment letter.
IT/ITeS companies are covered under shops and establishments act of the state.
In all the enactments the notice period is max. 1 month.
The companies are known to adopt tactics,coercion,force, pressure e.g.; tasks have been left incomplete by employee, employee has absconded, releiving letter shall not be issued..............etc.
Hence remain careful.
Remain amiable too.
To structure and draft notice of resignation, you may seek help from elders in the family, competent and experienced well wishers, lawyer/law firm………..
