Question

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?

TL

Reply 1

My approach in this situation will be to pay full gross salary from Oct to Dec 2018.

HGSG

Reply 2

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 ]

EG

Reply 3

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).

AL