HRSINGAPORE Community Discussions
Notice in Lieu
Hi HR practitioners,
Assuming employee A tendered his resignation on 1 Oct 2018 and required to serve 3 months notice period. However, employer requests him to leave earlier on 15 Oct.
We understand that as an employer, we are required to pay notice in lieu to him from 16 Oct to 31 Dec 2018.
May I know how to compute the notice in lieu pay from 16 Oct to 31 Dec 2018? For Nov and Dec notice in lieu pay, are we using notice in lieu formula ( Gross salary x 12/260 * short notice days) or just pay full gross salary?
My approach in this situation will be to pay full gross salary from Oct to Dec 2018.
The formula for the computation of salary in lieu of notice is as follows:
a) For a complete month – just pay the full Monthly Gross Salary (but to exclude OT, bonus, AWS payment).
b) For an incomplete month – Use [ (Monthly Gross Salary * 12 ) / 260 * no. of working days ]
According to MOM's guidelines, https://www.mom.gov.sg/employment-practices/salary/monthly-and-daily-salary, salary in lieu of notice is computed based on the actual number of notice days x gross daily rate of pay. Hence the total number of notice days from 16 Oct to 31 Dec = 55 days x (Gross salary x 12/260).
STILL NOT SURE ABOUT THE HR COMMUNITY? CALL US
(65) 6337-8016 or 6338-5816, 9 am to 5 pm, Mondays to Fridays
• We have the sole discretion in determining which messages or notes are appropriate, and editing and excluding any messages or notes.
• As your messages will be seen by others, please refrain from posting messages that you can be held legally liable for.
• We are committed to protecting our members from spam or unsolicited e-mail and we will remove and ban subscribers who propagate spam and those involved in harvesting activities. If you receive a spam message from a subscriber, forward the message to us.