Hello everyone. I'm looking for your expert advise on something. We have recently terminated an employee as a part of the layoffs. We gave him 2 weeks notice. As per the offer letter contract, the employee has to serve 90 days notice period if he resigns. Are we obligated, by law, to pay him 3 months notice salary? Let me know if you need any further information

General practice across the board - when layoffs happen, is for companies to offer a severance package as decided by the company (typically 2-5 months) of salary. From my experience, there could be other implications of this like affecting the brand of the company and having negative reviews on job portals - making future hiring difficult. Would be better to consult with your company lawyers.

Thanks, Joel

In Principal if it is mentioned on the offer letter that the notice period is 3 months which is applicable to both parties employer and employee then in case of Layoff for what ever reason the company is also obligated to pay the employee the notice pay which is 3 months, in general companies also in case of lay off accommodate an additional month of pay or so (depends from companies to companies) as a good practice to help employees.

https://docs.google.com/forms/d/e/1FAIpQLScFI1JyVDwgg_Kz-qhTD8b5lYCYnef1OLIIICUU1oMxX_g0dw/viewform can you add them here? DB: https://docs.google.com/spreadsheets/d/1Sp3kzVbS0kGMPi_FIayKC3cR0VgFFh6BQhlj_SfocHA/edit?resourcekey#gid=1372642736