Hi all,

A friend of mine ( working in a large multinational company and wants his identity and the name of the company not disclosed )is interested in knowing HR practices being followed by various companies on the following issue:

Notice period in terms of employment

What typically happens when somebody is not willing to serve the entire/part of
notice period keeping in mind the following:
1. He/she has no accumulated leave
2. He/she has accumulated PL which is less than the notice period
3. He/she has PL well in excess of notice period

What are the ramifications of the above on the compesation paid by the company/to be paid to the company? How are the issues generally/legally ( if any) settled in India.What are the best and most fair practice ( both on the part of the company and the person) in this regard.

Regards,

Aparna Sinha

Dear Aparna,

Generally in many organisations, the balance PLs are being adjusted as part of recovery of notice pay.

Encashment of PLs is being done on Gross Salary except in some companies where PL encashment is being done on Basic Salary. Although PL encashment needs to be done on Gross Salary.

If the departing employee doesn't have any PLs in his leave account, then he is required to pay his gross monthly/basic salary in lieu of notice, as per the laid down norms in the organisation and as contained in his/her appointment letter.

If there are less Pls balance in his leave account then, the balance PLs may be adjusted in his notice period and he/she may be asked to pay the balance days' salary in lieu of notice pay.

I hope, this will solve your problem

thanks

Amit Anand Gera