Company Relieving Earlier Than Notice Period And Asking To Pay For That Period

Dear Seniors,

My company has a notice period of two months (60 days) for separation.

In my case, I was willing to serve the full two months' notice period.

A few days after I submitted my resignation, my manager (who has the authority to decide the relieving date) mentioned the relieving date and instructed HR to proceed with Full and Final calculation, etc.

The company's policy book states, "In cases where the management intends to relieve the employee earlier than the notice period, HR will seek approval to waive off the notice period."

My manager is authorized to decide the relieving date and approve waiving off the notice period.

From my understanding of this policy, when the relevant authority decides the relieving date, it implies approval to waive off the notice period, which HR can then act upon.

I was relieved on the tenth day after resigning.

During the Full and Final calculation, the HR team asked me to pay for the remaining 50 days of the notice period, which I find unreasonable. They explained that despite my willingness to serve the notice period, the manager chose to relieve me early without approving the waiver of notice period. Consequently, my employment was terminated on the 10th day, and I am being asked to pay for the remaining 50 days (gross salary), which amounts to a significant sum.

When I referenced the clauses in the policy book and sought clarification, the legal department head and HR responded, saying, "Theory and practice are always different."

I would appreciate your assistance with this matter. Could you please clarify whether it is common practice for an employer to relieve an employee earlier than the notice period, even if the employee is willing to serve, and then ask for payment for the unfulfilled notice period?

Furthermore, I would like to know if a company is obligated to adhere to its own policy books. Can I take legal action against the company?

Jiraiya

This is a bad HR practice. HR policies and practices cannot be different. If it is so, what is the need for making a policy? If so, what is the need for a specific Act called the Industrial Employment Standing Orders Act?

In practice, if an employer is relieving an employee before the effective date of their relieving, the employer will pay the remaining days' salary. However, in some cases, instead of that, the employee is asked to pay a notice period salary. This practice goes against the principles of natural justice.

Please have a good discussion with the concerned individuals and resolve the issue.

Madhu.T.K

If the employee is willing to serve the notice period, and the Company waives off the notice period, then the balance period of notice period cannot be recovered from the employee.

The implementation of the notice period waiver and recovery of notice pay is arbitrarily used and interpreted by your Company Officials to suit its own advantage.

You can sort out the same with your HR, and if they do not agree, you can seek legal assistance, and issue a Legal notice to the Company.

Dear Mr. Madhu and Mr. Ashish,

Thank you for the replies. This is not the only case. In the case of leaves adjustment/encashment while relieving, HR is following a random procedure.

For one of my colleagues, they subtracted the leaves from the notice period and asked him to pay for the rest of the period. In my case, they encashed the per day basic amount for available leaves and asked me to pay the per day gross amount for the entire notice period.

Please let me know whether they can follow a random procedure like I mentioned above. Also, I want to issue a legal notice to them for misguiding me regarding payment for the notice period.

Please help.

Jiraiya