Pay in lieu of notice

pdburk · October 2003

Do any of you have circumstances under which you pay two weeks in lieu of notice, even if you do not have a written policy?

MrCreosote · October 2003

We do it when we fire someone for poor performance. It's worth it to get them out the door and to avoid 2 weeks of bitterness and disruption.

pdburk · October 2003

Thanks. This particular problem employee gave SIX WEEKS notice (possibly doesn't have a job?); and since we don't think that is reasonable, we are going to pay her for two. I haven't been able to find anything in writing that suggests that an employer should pay out that much notice, regardless of the situation.

HRgalME · October 2003

We've done it before under certain circumstances. I.E. the person has too much 'pull' in the company, gave 2 weeks notice, but we accept the day of notice as the last day of employment and pay them out the 2 weeks.

Cyndy

Balloonman · October 2003

I have seen it done for the reason Cyndy gives. When I was downsized the last time they did 2 weeks in lieu of notice.........did it on a Tuesday, I worked the rest of the week so it would not jam up my boss and co-workers.
My $0.02 worth.
DJ The Balloonman

ray a · October 2003

We had a director who accepted a job with a local competitor. We caught him recruiting for his new employer and walked him to the door immediately and paid him for the remainder of his 2 weeks.

HRQ · November 2003

Ray a - I would have considered this grounds for immediate termination, fired him and NOT paid the two weeks.

Pork · October 2003

On a case by case basis, we accept some and let them work out their notice. In some, we have accepted their two week notice and sent them packing with no additional compensation on the very day they put it in writing. You are in no obligation to pay anyone for work not accomplished. Being flexible has made a few to work right up to the time that they want to exercise their right of "at will termination" and they just walk off with no word said to anyone.

We do pay out sick and vacation pay earned and awarded. If it is not awarded because they leave 1 day prior to the anniversary date, so be it.

We treat both EXEMPT AND NON-EXEMPT the same and if they are well respected employees with great attitudes we usually do what they want. Given a bad attitude we jump at the opportunity to send them on the way!

PORK

mwild31 · October 2003

We do so only to avoid UI costs if we don't want the EE around anymore. Whether it's 2 weeks or 6 weeks notice - if you let her go before the notice is up - it becomes a termination & probably (call your state UI office) allowable with UI.

Don D · November 2003

All of the responses seem to involve paying out TWO weeks of notice and cutting the ee loose. The question posed involves an employee who gave SIX weeks notice. I may be wrong, but it is my belief that in this case, a hearing officer, no matter what forum the hearing is in, would rule that the payment of TWO weeks (and cutting him loose immediately) was reasonable. If not, you'd have trouble makers giving six months notice and expecting that sort of pay. Your UI office is not going to give a definitive answer regarding what the claims examiners ultimate decision will be and certainly won't know what the appeals officer's decision will be. If the period of notice is so long as to cause you consternation, I'd run it by the company attorney to see if he suggests paying it out in full.

ray a · November 2003

Ah, Don is right. I didn't pick up on the 6 weeks. So, I just gave my boss 5 years notice. I'll let you know how it turns out.

HRgalME · November 2003

>All of the responses seem to involve paying out TWO weeks of notice
>and cutting the ee loose. The question posed involves an employee who
>gave SIX weeks notice.

Don,

That is because in the original post, pdburk said 2 weeks. She didn't indicate the six weeks notice until post 5. So anyone who posted before that was responding to the 2 week scenario.

Just thought I'd clarify that those who put 2 weeks aren't crazy or inattentive to details...

Cyndy

pdburk · November 2003

That is correct. I did neglect to mention the 6 week notice in my original post. I apologize for omitting a very important piece of information.

E Wart · November 2003

Where I used to work, we often did 2 weeks pay in lieu of notice when someone resigned. This was usually someone in sales who really didn't need to continue calling on customers when they were leaving (and often to go to competitor). I don't see any problem with doing it as long as you are consistent. If employee gave 6 weeks notice, I don't see where you should have to pay him for 6 weeks notice (unless he has some type of contract). This does seem excessive. He probably hoped you would let him go and pay him for this.

E Wart

JM in ATL · November 2003

We had an employee give notice of "When she found another job". We accepted her resignation the day it was given, paid out two weeks. She then tried to file for UI. I told the DOL this was voluntary and she received wages in lieu of notice and we won on our part.

It is a reasonable action and not one you need a written policy for b\c you may not want to apply it to all employees.

mwild31 · November 2003

Well it seems to me that another issue here is acceptance of a 6-week notice to begin with. If the notice is accepted and it's 6-weeks - and you let go sooner - I still think you can be on the hook for UI costs. However, if your policy or at least the practice in the company is to accept notice no earlier than 2 weeks from final day worked - I think that might be the best policy. In fact, this sounds pretty good to me - any legal objections - I may just start doing the same.

blw · November 2003

In the state of Texas it is considered a voluntary quit if the employees last day worked is within the final two weeks of notice. It becomes an involuntary termination if the last day worked is before the final 2 weeks of the notice, unless the employee is paid for the entire notice period.

Pay in lieu of notice

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