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Without notice period resignation

(Querist) 14 July 2015 This query is : Resolved 
I am working in pharmaceutical company and practices as H.R. Our company have rule/ mentioned in appointment letter that every employee must to serve month notice at the time resignation/termination, & the services of a confirmed employee of any category are liable to be terminated by either party by giving one month's notice or payment/debit of one month's salary on either side. If any employee given resignation without one month notice period than as per labor law what salary we can deduct from his full & final settlement as compensation; one month gross salary or one month basic salary???. Please give me a answer.
Kumar Doab (Expert) 14 July 2015
The notice period/pay/rate etc is part of service conditions and enactments applicable to the establishment/employer/employe shall govern the service conditions and not any private agreement/contract/rule/policy drafted by employer and signed with employee e.g. appointment letter/contract of employment/HR policy/Exit Policy/FnF policy/Service Rules and regulations etc...........................





Thus notice period and notice pay and its rate shall be governed by enactments e.g. Factory Act, (Name of the State) Shops and Commercial Establishments Act, Standing Orders (Certified/Model) etc………..e.g.
As per (Name of the State) Shops and Commercial Establishments Act, notice period shall be as per length of service and can be either NIL or say 15 days and max.30 days……………




As per Model Standing Orders: notice period shall be NIL before confirmation and 30 days after confirmation.



Thus you may first determine the enactment that is applicable to the employee and you will find the right answer in the enactment.


As an HR person don’t implement the wrong policy…………….The HR persons should always remain unbiased and properly informed of their domain and limits...


You may find many threads at LCI useful e.g.:


http://www.lawyersclubindia.com/experts/Provident-Fund-543081.asp#.VaT9jrV-jMp


http://www.lawyersclubindia.com/experts/REsignation-536996.asp#.VaT9D7V-jMp



http://www.lawyersclubindia.com/forum/Working-hours-of-the-drivers-in-mumbai-123843.asp#.VaT-DLV-jMo
Rajendra K Goyal (Expert) 15 July 2015
Salary recovery would depend on company policy / contract of service. Generally gross salary.
Kumar Doab (Expert) 15 July 2015
Thus notice period and notice pay in lieu of notice period, rate of notice pay .............................all shall be governed by enactments that are applicable to establishment/employer/employee.....................



Thus you may first determine the enactment that is applicable to the employee and you will find the right answer in the enactment.


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