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Emplyee Resign and Company Shorten the Notice

vsam
Member
Tue, 07 Apr 2020 10:37:53 AM  (Last updated: Fri, 17 Apr 2020 11:16:04 AM)

Hi,

Need some input:

When employee tenders or serve resignation notice can the company shorten the notice period without pay in lieu - example 3 months' notice but the company shortens the notice to 1 month. 

Thank you

KL Siew
Administrator
Tue, 07 Apr 2020 01:26:10 PM

Yes, you can but have to pay two months salary as indemnity for the two months short notice.

vsam
Member
Tue, 07 Apr 2020 03:39:52 PM

Hi,

Why does the company need to pay the balance notice period?  Since the employee decided to leave the company, therefore the company decided to shorten the notice period from 3 months to 1 month. 

Please advise.

Many thanks 

kyt12
Member
Fri, 17 Apr 2020 11:16:04 AM

Contractual notice period applies both sides. Trying to make it simpler - Right now, the employee is willing to honour his promise or obligation to serve 3 months notice to the end. However, you are breaking your promise to let him serve, so you will need to pay for the remaining of the notice period if you don't allow him to do so.

However, this can be waived if the employee agrees, i.e. both sides mutually agree without any coercion. 

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