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One simple way to avoid giving notice pay

by , 09 May 2016
Notice pay refers to payment given to a leaving employee for the period of notice he works, which is required by law.

You can even decide that he doesn't need to work out his notice period at all. But if you do this, he'll still be entitled to notice pay for the period of notice given!

However, what if I told you that there is a way you don't have to pay your employee notice pay at all?

That's right, there is a way!

Keep reading to find out what it is...

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Make an agreement

You can make an agreement with the employee that he won't be required to work out his notice period, after which you can agree that he'll not be paid for it.

In other words, you can say that you'll waive the notice on condition that he doesn't get paid for it.

But be careful!

If you do make an agreement not to pay notice pay, you should get it in the form of a signed written agreement.

Failure to do this could see you facing a deceitful dispute.

This agreement can be in the form of a simple letter.  

For example:

Dear Mike,

Termination and notice

We refer to our discussions around your resignation and your request to leave before the end of your notice period in order to take up another job.

We agree to you leaving us on X date and that you won't be paid in lieu of notice, as it was your request to leave early.

Kindly sign the duplicate copy of this letter to confirm your agreement with this arrangement.

Yours faithfully,

ABC (Pty) Ltd.
 

*That was the one simple way to avoid paying notice pay.

To learn more, page over to Chapter T 03: Termination Pay in your Labour Law for Managers handbook.

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