Pay in Lieu of Notice

janeS · May 2004

Speaking in generalities, if an employee tenders a four week (required) notice...and we would rather just let her move on and not require her to fulfull the notice, do we have to pay her for the notice period?

(We are a non-union healthcare facility.)

Thanks,
js

LFernandes · May 2004

I don't know if it's a law or not but if an employee gives notice and we ask them to leave, we pay them thru their notification period.

4 weeks is a long time for a notification period. Does the company require that much notice or did the employee offer it? The notification is really just a courtesy by the employee to employer.

L

JM in ATL · May 2004

There are no federal laws that require you to pay out a notice. Check your state laws for any such thing, and especially if you have to pay out any earned but not used paid time off.

ray a · May 2004

If you do not pay through the end of notice, the ee may become eligible for UI.

Yahoo · May 2004

Ray A is right. In many states, letting the ee go & not paying for the notice period is considered a "constructive discharge" and you would then potentially be liable for UI. You'd just have to decide which was best - UI or 4 weeks pay/benefits.

Rockie · May 2004

We also require a four week notice for terminating employees as healthcare is very competitive and difficult to recruit for in our area.

There is no requirement to pay out a notice unless your state requires it. We usually just let the person work out the notice unless they become disruptive or we feel they may cause some type of sabotage to the company or property.

JM in ATL · May 2004

We usually don't have ee's work out notice due to the nature of the business and we have yet to lose a UI claim on anyone who tried to collect in the interim. But, GA is a very employer friendly state, so don't try this in a state like OH. X:)

Don D · May 2004

[font size="1" color="#FF0000"]LAST EDITED ON 05-05-04 AT 02:45PM (CST)[/font][br][br]What exactly is meant by, "We require..."? What could possibly be the consequences for the ee not going along with that? To me that's like "requiring" all employees to go through an exit interview. Yeah, right. I'm gonna be required to sit in a conversation after I quit.

On another note, we've had long discussions on this one before. Most if not all states will determine the individual eligible for UI if the employer releases them without pay during their period of notice, unless the period of notice is unreasonable. In healthcare, 4 weeks is reasonable. In all other circumstances, to my knowledge, two weeks is reasonable. It is common for the employer to pay out the notice and say 'so long'.

AnneHa · May 2004

We require two to four weeks notice depending on the position. The only consequence to the EE is that without proper notice they are not considered eligible for rehire.

Anne in Ohio

Rockie · May 2004

If an employee does not meet the notice requirement with us, they are not eligible for rehire and they also do not get their accrued PTO time. This is legal in SC, but not in all states, provided you have a policy to that effect.

janeS · May 2004

Thanks, all, for the input. I have learned something I didn't know about UI. Guess I'll just have to check the state regs...where is mwild when you need her?!

js

Pork · May 2004

JS: One last comment, we look at the individual and his/her past history of performance, before we determine that this ee is a danger to us while we are waiting for the notice to work its way out. Our policy is hold and will allow the company to make the best decision on behalf of the ee and the company. some we have let stay and work out the notice, a retiree; some we have put in writing your notice is accepted and is effective immediately, you will be paid for the time worked and sick/vacation hours awarded and not used; some we have said "hit the road jack and don't get hung up on the door knob, your last pay check will be available on Thursday of next week after 2 PM, and do not enter any property without prior invitation or you will be charged with trespassing, this is your written NOTICE OF NO TRESPASS". BY THE WAY THE "DANGER TO US" IS BOTH PHYSICAL AND BUSINESS CONSIDERATIONS.

Refer to your company written policy and make sure it gives the company the full range of opportunities.

PORK

janeS · May 2004

Pork:

Great detailed advice from a respected sage.

Thanks!
js

tfevergrn · May 2004

In addition, requiring a notice could also put your "at will" status in jeopardy!

Typically, if you have in your employee handbook, a provision that states that your company expects or requires so much notice, it is best to pay in lieu of notice. Because chances are since the employee did what you required (gave the appropriate notice) and would have been paid by doing so, it could be considered an implied contract. Therefore the chances of the employee receiving pay in lieu, in the long run are very good, should they pursue it.

Pay in Lieu of Notice

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