Dear Seniors,
There is a case: An employee, who has worked for an organization for more than 5 years, has been asked to resign due to his poor performance over the last 9 months. The organization has accepted the resignation and relieved him instantly. They subtracted one month's notice period from his full and final settlement as per the contract of employment. Now the question is: If the company asked for the resignation due to poor performance, then why was the notice period deducted?
As per my understanding, the employee should receive the salary in lieu of immediate relieving even though he has not been terminated. Looking forward to your precious suggestions.
Regards, MN KHAN
From India, Delhi
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3There is a case: An employee, who has worked for an organization for more than 5 years, has been asked to resign due to his poor performance over the last 9 months. The organization has accepted the resignation and relieved him instantly. They subtracted one month's notice period from his full and final settlement as per the contract of employment. Now the question is: If the company asked for the resignation due to poor performance, then why was the notice period deducted?
As per my understanding, the employee should receive the salary in lieu of immediate relieving even though he has not been terminated. Looking forward to your precious suggestions.
Regards, MN KHAN
From India, Delhi
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If a company is considering the employee's performance as poor, then the question arises: In the past, the employee has performed well except in the last nine months. In such a case, the company should have a dialogue with the employee regarding his poor performance and should give him a chance for improvement, instead of asking for resignation.
In this situation, the employee has the full right to receive one month's notice period as salary in lieu of immediate relieving, as per the employment contract, rather than having one month's notice period deducted from his full and final settlement.
From India, Nasik
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In this situation, the employee has the full right to receive one month's notice period as salary in lieu of immediate relieving, as per the employment contract, rather than having one month's notice period deducted from his full and final settlement.
From India, Nasik
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There are certain un-principled companies who can get away with anything.
From India, Delhi
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From India, Delhi
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Hello MN Khan,
I echo Ganesh Chavan and Raj Kumar. Looking at the scale of recent such instances, maybe it's time the Moderators have a rethink whether to name such companies in CiteHR. Human nature being what it is, many people make amends only when they realize their actions are noticed by the world and face the flak. But since such a step could be a double-edged knife, maybe some modus operandi needs to be evolved or found.
Coming to the present case, frankly, I am not sure if there's anything that the employee can do, except:
1] Do some self-analysis on the reasons why his performance went down in the past 9 months—not for anyone else's sake but for his own sake. This will ensure that he can make corrections where needed and such a situation is not repeated from his end at least. I think, like Ganesh Chavan mentioned, it should have been the company which ought to have facilitated such an exercise—but I also think the lack of such support should not prevent the employee from doing it on his own—like I said, for his own sake.
2] Move on in life—I recollect what one Army officer said when I went for SSB interviews years ago: Just because you don't get selected here doesn't mean "this is the end of the world." It just means "you belong elsewhere." A very nice and positive way of putting rejection. I guess this fits aptly to this employee—maybe it's just that it took 5 years to realize this aspect.
All the Best.
Regards, TS
From India, Hyderabad
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I echo Ganesh Chavan and Raj Kumar. Looking at the scale of recent such instances, maybe it's time the Moderators have a rethink whether to name such companies in CiteHR. Human nature being what it is, many people make amends only when they realize their actions are noticed by the world and face the flak. But since such a step could be a double-edged knife, maybe some modus operandi needs to be evolved or found.
Coming to the present case, frankly, I am not sure if there's anything that the employee can do, except:
1] Do some self-analysis on the reasons why his performance went down in the past 9 months—not for anyone else's sake but for his own sake. This will ensure that he can make corrections where needed and such a situation is not repeated from his end at least. I think, like Ganesh Chavan mentioned, it should have been the company which ought to have facilitated such an exercise—but I also think the lack of such support should not prevent the employee from doing it on his own—like I said, for his own sake.
2] Move on in life—I recollect what one Army officer said when I went for SSB interviews years ago: Just because you don't get selected here doesn't mean "this is the end of the world." It just means "you belong elsewhere." A very nice and positive way of putting rejection. I guess this fits aptly to this employee—maybe it's just that it took 5 years to realize this aspect.
All the Best.
Regards, TS
From India, Hyderabad
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This has been the mantra of late wherein companies look for ways to cut corners. It is only the small-time lala companies that resort to such tactics. The bigger ones like Unilever do not resort to such tactics.
The best option is to leave such companies to their devices and focus on one's future rather than getting into legal issues by reporting such companies on a website. Educate your near and dear friends by word of mouth.
From India, Mumbai
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The best option is to leave such companies to their devices and focus on one's future rather than getting into legal issues by reporting such companies on a website. Educate your near and dear friends by word of mouth.
From India, Mumbai
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Dear Seniors,
Thanks for your valuable responses. However, my query still remains unanswered: If the company asked for the resignation due to poor performance, then why is the notice period deducted?
Regards,
MN KHAN
From India, Delhi
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Thanks for your valuable responses. However, my query still remains unanswered: If the company asked for the resignation due to poor performance, then why is the notice period deducted?
Regards,
MN KHAN
From India, Delhi
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Hello MN Khan,
There is ABSOLUTELY NO REASON why the notice period should be deducted. However, you have not mentioned if the issue was raised with HR and if so, what the response/reply was. Let's be brutally honest and realistic—there's absolutely no reason why many things happen, even though everyone knows they shouldn't.
What would be the options then? One is to fight it out legally, even if it takes years to yield results. The next is to evaluate and weigh the benefits of fighting it out versus ignoring the situation and moving forward in life, AFTER learning the lesson to be careful in the future.
There are no 'Right' or 'Wrong' decisions in such situations. One only needs to weigh the possible consequences and if he/she can handle them on a sustained basis, in terms of the associated cost, time, effort expended, and the psychological trauma.
All the Best.
Regards,
TS
From India, Hyderabad
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There is ABSOLUTELY NO REASON why the notice period should be deducted. However, you have not mentioned if the issue was raised with HR and if so, what the response/reply was. Let's be brutally honest and realistic—there's absolutely no reason why many things happen, even though everyone knows they shouldn't.
What would be the options then? One is to fight it out legally, even if it takes years to yield results. The next is to evaluate and weigh the benefits of fighting it out versus ignoring the situation and moving forward in life, AFTER learning the lesson to be careful in the future.
There are no 'Right' or 'Wrong' decisions in such situations. One only needs to weigh the possible consequences and if he/she can handle them on a sustained basis, in terms of the associated cost, time, effort expended, and the psychological trauma.
All the Best.
Regards,
TS
From India, Hyderabad
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If the company is terminating you, then no questions arise for any type of deduction on the behalf of the notice period. If you are resigning, then it is your responsibility; otherwise, not. First of all, read your appointment letter carefully. If there is a provision mentioned for the notice period, whether terminated by the employer or your own willingness, the notice period will be served. Otherwise, you can seek help from the labor department.
From India, Chandigarh
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From India, Chandigarh
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If a company dismisses a person for any reason, then the person will not need to pay the notice. If there is a rule for notice pay from the employee's side, then there is also the same rule for the employer. Therefore, the employer would have to pay the notice to the employee.
From India, Bangalore
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From India, Bangalore
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Dear NK,
What the company has done is ethically wrong. However, you have to understand that technically they asked the employee to 'resign'. So effectively, it is the employee who has to serve the notice period since (officially, on paper) he is the one who initiated the severance process. Now the company has 'graciously' waived off the notice period and let the employee leave with immediate effect. Therefore, they can argue that the notice period is not required.
I reiterate, the company is wrong in what it has done. But the employee's chances of winning this argument may be limited.
Best,
Deb
From India, Mumbai
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What the company has done is ethically wrong. However, you have to understand that technically they asked the employee to 'resign'. So effectively, it is the employee who has to serve the notice period since (officially, on paper) he is the one who initiated the severance process. Now the company has 'graciously' waived off the notice period and let the employee leave with immediate effect. Therefore, they can argue that the notice period is not required.
I reiterate, the company is wrong in what it has done. But the employee's chances of winning this argument may be limited.
Best,
Deb
From India, Mumbai
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