Dear Friends,
I have a small concern to defining the duration of Notice Period for certain cadre of employees. Management doesn't want to provide 30 days of Notice period.
In this case, please let me know, what would be the minimum duration of Notice period as per Indian Labour Act. (Please mention the exact terminologies which is in Labour Act).
Concerns,
1. Is that mandatory to provide the Notice period to employees.
2. If so, What would be minimum duration?
3. Is an organisation have the privilege to provide an offer letter stating without notice period?
4. Else can we go for one week notice period?
Thanks & Regards
Karthik
From India, Bengaluru
I have a small concern to defining the duration of Notice Period for certain cadre of employees. Management doesn't want to provide 30 days of Notice period.
In this case, please let me know, what would be the minimum duration of Notice period as per Indian Labour Act. (Please mention the exact terminologies which is in Labour Act).
Concerns,
1. Is that mandatory to provide the Notice period to employees.
2. If so, What would be minimum duration?
3. Is an organisation have the privilege to provide an offer letter stating without notice period?
4. Else can we go for one week notice period?
Thanks & Regards
Karthik
From India, Bengaluru
Notice period is fixed considering the time required for getting a replacement. It is purely management prerogative. Therefore, you can even have different notice period for different categories of employees. It may be three months for managerial personnel or one month for worker category employees. There can be no notice period for trainees or those under probation.
Now coming to notice period under Labour Law, we should follow the Industrial Disputes Act and or the Industrial Employment (Standing Orders) Act. In Industrial Disputes Act, a mention has been made as to what should be the notice required to be given to workers in case the employer wants to terminate the workers. It is one month for an establishment employing not more than 100 employees and three months for an establishment employing more than 100 employees. The Act also stipulates that at least two months notice should be given in order to close down an establishment.
The above notice periods are applicable only to workers who are not having any supervisory or managerial powers. Moreover, the Act is silent about the notice that a worker should give to the employer if the former wants to leave. That means, a workman can easily walk out of a company without giving any notice to the employer but the employer cannot send him out without giving notice or paying salary in lieu of notice.
Now coming to employees who are not protected by ID Act, there can be notice period of any duration with one condition that the duration should be the same from both side. If you are that confident that you will get a replacement for an employee who leaves without informing and without notice, you can very well have a clause that the contract of employment is terminable without any notice. But this would become very risky always.
Even in the case of workers there has been a tendency to have a notice period policy by including the same in the Standing Orders of the company. You cannot have a notice period from the employer which is less than 30 days or 90 days,a s the case may be, but you can have a notice period from the workers' side since the ID Act has no mention of it. If the workers agree it, the same will become a binding order.
Madhu.T.K
From India, Kannur
4245Now coming to notice period under Labour Law, we should follow the Industrial Disputes Act and or the Industrial Employment (Standing Orders) Act. In Industrial Disputes Act, a mention has been made as to what should be the notice required to be given to workers in case the employer wants to terminate the workers. It is one month for an establishment employing not more than 100 employees and three months for an establishment employing more than 100 employees. The Act also stipulates that at least two months notice should be given in order to close down an establishment.
The above notice periods are applicable only to workers who are not having any supervisory or managerial powers. Moreover, the Act is silent about the notice that a worker should give to the employer if the former wants to leave. That means, a workman can easily walk out of a company without giving any notice to the employer but the employer cannot send him out without giving notice or paying salary in lieu of notice.
Now coming to employees who are not protected by ID Act, there can be notice period of any duration with one condition that the duration should be the same from both side. If you are that confident that you will get a replacement for an employee who leaves without informing and without notice, you can very well have a clause that the contract of employment is terminable without any notice. But this would become very risky always.
Even in the case of workers there has been a tendency to have a notice period policy by including the same in the Standing Orders of the company. You cannot have a notice period from the employer which is less than 30 days or 90 days,a s the case may be, but you can have a notice period from the workers' side since the ID Act has no mention of it. If the workers agree it, the same will become a binding order.
Madhu.T.K
From India, Kannur
Hi Madhu, Thanks a lot for clear definition but how do we come to know an employee falls under ID Act or not. Is that applicable for an e-commerce startup which have around 100 - 150 employees count.
From India, Bengaluru
From India, Bengaluru
Mr Madhu,
In case of PSU, is the notice period mandatory as per appointment order on termination on VRS?
Can a PSU release an officer on VRS without paying notice period salary of 80 days (within 10 days of applying)?
From India, Salem
In case of PSU, is the notice period mandatory as per appointment order on termination on VRS?
Can a PSU release an officer on VRS without paying notice period salary of 80 days (within 10 days of applying)?
From India, Salem
VRS is a separate scheme of the individual establishment. Therefore, the terms and conditions will be as per the scheme floated by the company. Please refer the same for details.
VRS being a package, there may not be any question of notice period.
Madhu.T.K
From India, Kannur
VRS being a package, there may not be any question of notice period.
Madhu.T.K
From India, Kannur
Dear
Continuing with Madhus comment, there are certain act like shops and establishment acts which states that one month notice is necessary after ninty days of work.
So all depends upon the nature of business, which enactment under which it will be covered, the nature of duty is particular empoyee, attrition rate, appointment terms and conditions like trainee, fixed term contract, probationer, confirmed..., suitable time required to replace an employee.
So it's a mix subject of labour law and HR policies.
Normally it is advisable to have different set of rules for notice period for different level of employees.
Anurag Lakhotia
Lexlabour.com
From India, Delhi
Continuing with Madhus comment, there are certain act like shops and establishment acts which states that one month notice is necessary after ninty days of work.
So all depends upon the nature of business, which enactment under which it will be covered, the nature of duty is particular empoyee, attrition rate, appointment terms and conditions like trainee, fixed term contract, probationer, confirmed..., suitable time required to replace an employee.
So it's a mix subject of labour law and HR policies.
Normally it is advisable to have different set of rules for notice period for different level of employees.
Anurag Lakhotia
Lexlabour.com
From India, Delhi
hello all,
I have left my last employer(big MNC) in 7 days(2days induction) without serving any notice period and taking any salary and I am experienced candidate also they haven't provided any sort of training even I worked from very first day. now they are asking for 2 lacs as per the service level contract in which its written the amount is for the training cost not penalty. am I liable to pay??
From Canada, Toronto
I have left my last employer(big MNC) in 7 days(2days induction) without serving any notice period and taking any salary and I am experienced candidate also they haven't provided any sort of training even I worked from very first day. now they are asking for 2 lacs as per the service level contract in which its written the amount is for the training cost not penalty. am I liable to pay??
From Canada, Toronto
Mr Madhu,
The Notice period was payable on VRS as per Govt guidelines.
VRS Guidelines |
and a supreme court verdict
http://indiankanoon.org/doc/32226972/
But, a PSU did not discuss about the notice period in the VRS scheme (which is contrary to the guidelines). Not paying notice period is in violation of appointment order and rules of the company.
In such a case, what is the remedy for the employee?
From India, Salem
The Notice period was payable on VRS as per Govt guidelines.
VRS Guidelines |
and a supreme court verdict
http://indiankanoon.org/doc/32226972/
But, a PSU did not discuss about the notice period in the VRS scheme (which is contrary to the guidelines). Not paying notice period is in violation of appointment order and rules of the company.
In such a case, what is the remedy for the employee?
From India, Salem
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