I am working in a staffing organisation. I wanted to know something about termination clause. I heard from one of my HR friend that if suppose an employee is terminated by any organisation then the organisation has to pay the employee extra 2 months of salary as because he terminate the employee. Is it exactly true.
From India, Bhubaneswar
From India, Bhubaneswar
Hi Ipsita,
Termination clause differs from company to company, there is no hard and fast rule that company has to pay 2 months salary while terminating employee, one may refer the 'termination of services' clause in his/her appointment letter. Generally most of the company follows the trend of notice period wherein after probation an employee has to serve notice for example if employee leaves the company he has to pay notice of one month, if he is not able to serve the notice period he has to pay one month salary in lieu, likewise if company terminates the services of employee company pays one month salary in lieu. Please note this is just an example as already stated above it depends on the clause of appointment letter.
Regards
Ashutosh
From India, Kollam
67Termination clause differs from company to company, there is no hard and fast rule that company has to pay 2 months salary while terminating employee, one may refer the 'termination of services' clause in his/her appointment letter. Generally most of the company follows the trend of notice period wherein after probation an employee has to serve notice for example if employee leaves the company he has to pay notice of one month, if he is not able to serve the notice period he has to pay one month salary in lieu, likewise if company terminates the services of employee company pays one month salary in lieu. Please note this is just an example as already stated above it depends on the clause of appointment letter.
Regards
Ashutosh
From India, Kollam
I fully agree with Mr. Ashutosh, it depends from company to company which is mentioned in the termination clause of the Appointment Letter/Employee Handbook. I have also come across a few companies during my course of audit, wherein the company does not pay a single penny on termination of the service of the employee on severe misconduct e.g. sexual harassment, consumption of alcohol on duty, theft etc.
From India, Ahmadabad
From India, Ahmadabad
Hello,
If termination is on account of proved misconduct, then payment in lieu of notice period is not applicable because this termination is by-way of punishment.
If termination is on expiry of the contract period, then also payment in lieu of notice period is not applicable.
If termination is during the period of probation, then it is decision of the management, and payment in lieu of notice period is required(if there is company rule or specific clause in appointment letter)
Thanks
V K Gupta
From India, Panipat
If termination is on account of proved misconduct, then payment in lieu of notice period is not applicable because this termination is by-way of punishment.
If termination is on expiry of the contract period, then also payment in lieu of notice period is not applicable.
If termination is during the period of probation, then it is decision of the management, and payment in lieu of notice period is required(if there is company rule or specific clause in appointment letter)
Thanks
V K Gupta
From India, Panipat
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