You had posted in your first post that “there's no point in making someone stay if they're unhappy working in the organization’
You have posted in your second post that “Due to some personal reasons he had to quit and had to return to his hometow.”
Resignation can be without permission or notice.
{ Defense forces of our republic may be the only exception.}
The reason of employee to leave the job is certainly reasonable and justified (personal and to be at his hometown). Let us assume if employee has ailing parent at hometown whom he is legally, socially, personally liable to maintain, then can the company claim that employee has intentionally made a decision to cause a deliberate and intended loss to company.
--“But at the same time due to his sudden exit the company incurred a huge loss.”
What loss? Can you prove it?
On the contrary your management is willing to relieve him in a week’s time against a notice period of 2 months inserted by your company in appointment letter crafted/drafted by your company.
Moreover notice period of 2 months during probation, is unreasonable.
The period of probation is to test the suitability of employee for permanent employment/confirmation of employment. Your company must be aware that during probation period employee does not have a lien of job.
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.
Does the clause on termination by company specify it shall be the choice of the employee also to accept notice pay in lieu of notice period if employee issues notice of termination?
Another interesting part is that employee has willingly offered to serve notice period of one month, and your company’s very wise management has decided to relieve the employee in a week’s time. The goal seems to be to collect 3 weeks notice pay from employee. Private companies are created for profits. However the means should be reasonable.
Another point is that if employee has initiated and given date of his retirement (resignation/termination/separation) company can not accept the notice before date of retirement given by employee.
If the employee has willingly offered to compensate for shortfall in notice period of one month then company may accept @ Basic + DA and gracefully waive off rest of one month, and bid farewell like a gentleman and handover proper relieving and no adverse comments.
If employee has notified the company on separation it is the duty of the company to set and ensure proper exit process and handover.
Thus you may issue a communication and designate an employee to whom the charge and company property should be handed over.
Your company has expressed willingness for a notice of 7 days
Or if your management is bent on extracting two months notice pay @ as decided by it and is willing to file a recovery suite despite your genuine piece of advice, and then let them go for it. They may not get a penny.
Candidates/employees find such companies, management, HR: Repelling, unworthy of being employed with.
A properly informed, determined, employee counseled by a smart lawyer would know how to handle such a situation without any damage done to him.
The discussion in this thread is heartfelt opinion only.
Finally: as already posted: Rest is up to you.
Valuable advice of learned experts/members is sought.
