Dear HR professionals, I am an employee and I have some questions regarding the exit clauses in my appointment letter. The clauses and my queries are listed below. I would be grateful for your help and guidance as I am considering resigning and will need to address these issues soon. Clause: Either party can terminate the appointment by giving 3 months’ notice or payment in lieu. Q: Is it still the case that the company can insist on the full 3 months’ notice period? Or can I choose to pay a full or partial amount in lieu to reduce the notice period? Clause: No leaves can be taken during the notice period. Q: Can I use leave to reduce the notice period as I have sufficient accrued leave? Is this at the company’s discretion? Clause: Salary will be withheld for 3 months and will be released after FNF, which will take 30 days (total 4 months). Q: Is it legally permissible to withhold salary for the full 3 months’ notice period in my case? There is also a 30-45 day FNF processing time, which means the settlement will be made after 4-4.5 months. I have agreed to these conditions in my appointment letter and I am considering resigning and accepting an offer. It would be beneficial for me to reduce the notice period to be able to take the offer. Any advice or help would be greatly appreciated. Thank you.
In most employment contracts, employers usually establish certain terms and conditions that are based on their organization’s policies rather than legal requirements or principles of fairness. Employees typically accept these terms without question in a “take it or leave it” situation. Regarding your questions, 1) In the best interest of the business and its operations, the employer can require the employee to work the full notice period, even if there is a buy-out clause. Whether the buy-out is full or partial is up to the employer’s discretion. 2) It depends. Notice periods do not give the departing employee the right to take leave for personal matters. Whether leave is granted during the notice period is at the employer’s discretion and depends on the purpose of the leave. 3) This would be illegal as it violates the legal requirement to pay all applicable dues upon termination of employment. It is important to note that a successful and amicable separation depends on the employee’s relationship with their superiors and the organization’s attitude and generosity.
Dear Sir, Thank you for your prompt reply. I am very grateful for your guidance and assistance. I have noticed that in many organisations, salaries are withheld for only one month, even if the notice period is three months in total. This seems illogical to me, particularly for those who are the sole earners in their households. Could you please advise me on what can be done in this situation? Thank you
Although it can be incredibly frustrating when an employee is wronged and financially affected by their employer, it may not be wise to take legal action. Many people are involved in the administration process, and a delay or lack of urgency at any stage can result in a long wait for the employee to receive their final settlement, such as their F&F. Even in government service, where there are clear rules for settling dues when an employee leaves, their colleagues can sometimes cause delays, either intentionally or unintentionally, making the ex-employee feel like they are running around in circles. These points are not meant to excuse such delays or make the affected person feel better, but rather to highlight the reality of the situation and help them to be prepared.
Dear Sir, I appreciate your swift response and will take your advice into consideration. Thank you