If an employee tendered his resignation on 30 July 2023 and is required to serve a two-month notice period but requests to leave on 15 September 2023, does he have to pay the company notice in lieu?
If an employee requests to leave earlier than the stipulated notice period, they would generally be required to pay in lieu of notice.
In this case, since the employee has a 2-month notice period but wants to leave on 15 September 2023, they would need to compensate the employer for the remaining days from 16 September until the end of the notice period.
Please note that the actual amount to be paid in lieu of notice may vary depending on the employment contract or any applicable employment laws in your country.
It is recommended to refer to the specific terms and conditions stated in the employee’s contract to determine the exact amount to be paid.
What kind of letter should he sign?
To properly document the employee’s request to leave earlier and the agreement to pay in lieu of notice, you can prepare an agreement letter for the employee to sign.
The letter should include the following details:
1. Employee’s name and position
2. Date of the original resignation letter
3. Original notice period stated in the resignation letter
4. Employee’s requested last day of work
5. Agreement that the employee will pay in lieu of the remaining notice period from [start date] to [end date]
6. The amount or formula for calculating the payment in lieu of notice
7. Method and timeline for the payment
8. Acknowledgment that the employee has read and understood the terms of the agreement
9. Signature and date lines for the employee and employer
Make sure to review the letter before having the employee sign it. If necessary, you may wish to ensure compliance with local employment laws and regulations.
How do you calculate the amount payable by the employee?
To calculate the payment in lieu of notice, you can use the following formula:
{(Employee’s monthly salary/number of working days in a month) * Number of remaining notice days}
For example, let’s say the employee’s monthly salary is $3,000 and there are 22 working days in a month.
The employee wants to leave on 15 September 2023, and the notice period ends on 30 September 2023.
First, calculate the number of remaining notice days:
Number of remaining notice days = Total notice period – Number of days until the requested last day of work
Number of remaining notice days = 2 months * number of working days in a month – (Number of working days between 15 September 2023 and 30 September 2023)
Next, calculate the payment in lieu of notice:
Payment in lieu of notice = (Employee’s monthly salary/number of working days in a month) * the number of remaining notice days
Using the given example, the calculation would be Number of remaining notice days = 2 months * 22 working days – (15 working days)
Number of remaining notice days = 44 – 15 = 29 days Payment in lieu of notice = ($3,000 / 22) * 29
Payment in lieu of notice = $3,977.27
Please note that the actual calculation may vary depending on the specific terms in the employee’s contract or any applicable employment laws.
It is always recommended to review the employment contract and consult with HR professionals if needed.
