If an employee if a private IT company resigns and does not want to service notice period of 3 months - do they have to pay full salary of 3 months or just the component of basic salary for 3 months? And if the organization terminates the services of an employee & does not give notice - does it need to pay the basic salary of 3 months or the full salary of 3 months to the employee? Is there any government rule regarding the same or can the payout be decided by the IT firm internally?
There isn't a government rule regarding hire and termination of employees of the private sector employment.
The agreement between you and your company/firm is important as it contains all the issues regarding notice period/ bond/termination etc. Kindly share the same so that a better advice may be given.
Compensation in lieu of notice period shall be made by paying the basic salary to the number of days not served.
You may visit the conditions mentioned in the employment offer letter for further clarifications.
You need to pay basic salary in the said case in lieu of notice period
It depends upon terms and conditions of your contract
2) you may have to pay full salary if so mentioned in contract
3) your employer may have to do the same in case he terminates your service
- As per Specific relief Act, an employee having his right to resign anytime , and the employer cannot force him to continue the job , except the employee will have to serve the notice period as mentioned in the offer letter.
- Further, if the employee not wanted to serve the notice period , then he will have to pay the basis salary for the period which is mentioned in the offer letter dully signed by the employee.
- Hence, you should check the offer letter for knowing the rules and regulation , and it depend upon the company to company , and is not fixed by Government.
- However , one sided contract is also not valid , and the employer cannot impose its rules regulations which is not valid for the employee .
In both cases it the basic salary as the employee is not rendering service d he is not entitled perks. This is the Rule of Common Sense.
Dear Client,
Employees who are planning to leave their jobs without serving the stipulated notice period.If you unable to serve the notice period or works less than the mentioned period in the appointment letter, you will be liable to pay for the remaining days or period.Employees will normally be contractually obligated to work their notice period.Employer can force an Employee to complete the Notice period, it is for the employee to complete the Notice period in order to take his full salary and the relieving letter.Resignation with immediate effect could put you in breach of your contract. Your employer may then decide to make a claim against you for losses suffered as a result of your breach.
Thanks & Regards
The notice pay means the full salary, including basic pay, DA and all other allowances, as reflected in the employee's payroll every month. This is the general rule under the labour law which every employer has to follow, whether in government or in IT industry.
