Working As A Company Secretary In Voith Paper
2nd June 2011 From India , Delhi
During the resignation time, as explained by Mr. Roy S, the resigned person will get his complete emoluments as per the service agreement. For resignation Cases the company need not to pay anything to the resigned person, but he will be paid with the month's salary and leave pay or earned / previlege leave encashment will be paid. Even Food Allowance, Conveyance allowance, HRA whatever his eligibility are also to be paid for the period he has served.
With warm regards
30th June 2011 From India, Kumbakonam
Thanks for your valuable comments
There are three things to be noted
(i) Willing to Pay; (ii) Able to Pay; (iii) Eligibility to get paid
If a person is eligible to get paid by the company then there is no such willing to pay or ability to pay will matter. As that is a company, there will not be any personal feeling involved with biased mentality.
Actually the Performance will be linked while paying the incentives. For Fixing the Future Incentives past performance will be taken into consideration and while declaration of the Incentives if the staff exists in the company then only it will be considered for evaluation of his performance. If the incentive is not linked with performance then it should invariably be paid by the company or organisation to all the employees even those who left the services.
5th September 2011 From India, Kumbakonam
I am joining late, but have recently got some experience of resigning with 3 months notice period and would like to share.
I worked in a PVT LTD company, now having registered office in Gujarat, for 17 years. I resigned on 13 May, giving 3 months notice as per written company policy. In that policy company has not written that they can or they may or they will relieve that employee earlier ( before end of notice period ). In fact company policy on the contrary insist that those employee who resign will not be relieved earlier even if employee wants to pay " notice pay " to company in lieu of notice period he does not want to serve and would have to serve full notice period. However in my case they decided to relieve me on 31st June, full 42 days before end of 3 months notice period.
Further they offered to pay only basic pay for balance 42 days of notice period as " notice pay ".
On this site, many learned and professional HR managers have clarified that it is not correct to relieve an employee during notice period if employee wants to serve full notice period as was specified by company in its policy. During my search, I also stumbled upon references to Honorable judgments of Supreme Court on lawyersclubindia.com. And as per these references by lawyers on the website, it is illegal to relieve an employee during notice period if employee wants to serve full notice period as was specified by company in its policy. I am searching for one such judgment and will post it later as soon as I find it. As per Singapore law ( refer ; mom.gov.sq ) it is illegal to relieve an employee during his notice period he served by resignation.
As regard to " notice pay " to be paid by employer if employer wants to part way with employee before end of his notice period, it has been clarified at several places in this web site, that it shall be basic pay + DA + HRA + all other benefits, which employee would have earned naturally had he been allowed to serve till end of his notice period. Also refer Wikipedia for " pay in lieu of notice " as per UK law. Same definition is used on nidirect.gov.uk.
Unfortunately in India, it has become a matter of " company policy " to decide unilaterally whatever suits company managers. Company has every right to protect their interests, but for that one need not be unilateral, and unethical / unjust. The company where I last served as General Manager - Sales, the company policy itself is not complete, not written properly, and HR manager himself says that our company policy is to do whatever we have been doing earlier and we need not write it down and communicate to employees and employees can not debate on it. This is one such example of how HR managers talk as " employer" and they forget that they are professionals / employees like one who has just resigned and as professional they have to ensure transparent, ethical and fair settlement of dues of employees leaving.
21st August 2014 From India, Mumbai
Our organization pays out the notice period pay, even if the employee is relieved before the last working day but it is paid out in FFS (Full & Final Settlement) after 45-60 days. They also pay out PL leave balance only on the basic component of the salary. Apart from salary all other pay-outs to resigned or terminated employees are calculated on basic component. Are we legally compliant?
28th November 2014 From India , Gurgaon