Boss2966
Industrial Relations
Skhadir
Strategic Business Management Includes Revenue
Malikjs
Gm (hr)
Smbhappy
Finance, Hr, Sectarial Practices, Law And
Dr. Trinath Dash
Ir And Labour Laws, Training & Devpt
Aparnakhandeparker
Human Resources
Irvinder
Army Officer
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Thread Started by #rajmore22

Hi all At present as per our policy we have notice period of 30 days now i want to change it to 60 to 90 days for all employees, please help me that what is a procedure i need to follow ? Thanks Raj
1st January 2011 From India
Dear Raj,
Serving of notice for any number of days should be on either side. You may do the following:
(1) Revise your existing Policy and fix either 60 or 90, get it approved from the management/authorized person and publish it through notice board or through intranet or through your existing communication channel. (2) Prepare a Notice addressed to all existing employees to inform that the management has decided to revise the notice period from 30 days to 60/90 days (on either side) with immediate effect for all existing employees on rolls, as of date. Accordingly, the notice period of 30 days mentioned in the appointment letter of respective employees stands revised to 60/90 days with immediate effect, which please note. (3) Paste the Notice on all Notice Boards. (4) Make copies and put it in respective Personal Folders for future reference.
Thanks,
1st January 2011 From India, Jaipur
dear it is internal policy of the company but must intimate to all employee...choose which is best way..
2nd January 2011 From India, Velluru
Dear Raj,
This is indeed an internal policy of the Organization, however if your Company is certified against any of the Systems such as the ISO or CMMi, then you will have to get the required approval from the Authorized Personnel or Policy Decision makers in the Organization. Then the Standard Operating Procedures and Policies need to be revised based on the approval from the management.
Once this is completed then the most important thing is to intimate all the employees of the changes in the Notice Period. This can either be done by posting in the Notice Boards, or if you have some online system then the same can be done through the Online System. You can also circulate Mails, please make sure that you retain a copy of the communication sent to the employees.
For further clarifications please write to me on
Regards,
Mohammed Azmath
2nd January 2011 From India, Tiruchchirappalli
As advised by Mr. Gopal Make the copies of the revised Notice period and obtain the signature from the employees stating that I have read and understood the contents and I agree to serve the same.
With warm regards
S. Bhaskar
9099024667
2nd January 2011 From India, Kumbakonam
dear
in my view you should first get your certified standing orders modified because this clause is given in certified standing orders.After that you make a small contract refering the earlier clause of appointment letter and it should be sigened by both parties by employer and employees.If someone does not agree to that clause than you can not force him to sign.
ofcourse it is internal policy but as a employer you are bound by certified standing orders/appointment contract.
2nd January 2011 From India, Delhi
Why at all you want to do this? Your organization has to be on the equally liable.

You cannot change the terms of service on the existing employees unilaterally. If you do so it will be change of their service conditions (to which company has already contracted with the employee) it will be a violation of the standing order and law in general. You have to have the consent of all such employees before doing so. Do not take innocent employees to ransom by unilateral pronouncements. It is bad HRM practice. Such a wild move can even bounce back to the disadvantage of the organization.

Mere putting the same on the notice board or bringing into the notice of the employees will not meet the end of law. If you have Union, then it is more appropriate that you get the consent of the union first.

Only thereafter, you can modify the Standing Orders and the get the same vetted from the law enforcement agencies, before they put to effectual practice.

Otherwise, it will be an Unfair Trade Practice and put your organization into trouble later or sooner. Moreover, it may hit the branding of the organization too, being unfavorable service conditions.

There are other ways to retain the employees rather then to coerce them to serve longer notice period or part with the substantial money. Remember that an unwilling employee is a liability on the company. Once an employees makes a mind to quit, he will do so, despite your embargo.
2nd January 2011 From India, Chandigarh
You may put a notice on notice board informing about your intentions to chan ge the notice period. Call for objections from the employee (within 7 days), Prepare yourselves to face objections (i,e, either to substaintiate or to over rule the objections). This process is like Notice of Change as we do in ID Act (section 9A), Therafter depdning on the response from employee, you may decide to implement the same or not. If you receive tremedous opposition, pl. drop the idea for the existing employee. However, you may do the same for all future employee ( by mentioning this clause in their appointment letter)
2nd January 2011 From India, Nagpur
Yes, this is the proper and correct procedure for implementing any proposed change in the service conditions. Vasant Nair
3rd January 2011 From India, Mumbai
In my opinion, as per the best HR practice is, if you have a practice of annual increment letter to the employees you can add this clause of change of existing notice period to 60/90 days. All employees will accept this and you will get the signed acknowledgement as well. Based on this; if you have a service condition manual or HR manual you can amend and subsequently issue the amended copies to the employees.
Wish you all a healthy year 2011
Balakrishnan K
3rd January 2011 From India, Ahmadabad
Amend your company's Rules and regulations as per new policy and get it sign to the competent authority and circulate all the employee. Don't forgotten to take signature from all the existing employee. In future issue all appointment letter with clear notice period.
M. Haque
3rd January 2011 From India, Delhi
[/QUOTE]M. Haque:
Amend your company's Rules and regulations as per new policy and get it sign to the competent authority and circulate all the employee. Don't forgotten to take signature from all the existing employee. In future issue all appointment letter with clear notice period.[/QUOTE]

This is sheer coercion. You do it with ulterior motive. This will be a breach of the Contract entered with them at the time of employment and it will be a breach of trust. The move is ill intended and base less. The Human Resource is the all important resource. Without it all your other resources are useless. You cannot use your financial resource, plant & Machinery resource, Raw materials and everything else without your human resource. So why coerce the employees to do such a shabby act, just to show your unscrupulous writ on innocent employees.
Bob Gately had also asked you "Why do you want to make the change?". I had also asked the same question. But no reply till now.
3rd January 2011 From India, Chandigarh
dear sir
1. ask urself what advantantages u are gaining from this change.
2. the present system of 30 days for temp /unconfirmed personnel and 90 days for confirmed personnel is universal and time tested.
3. before u put up for decision , ananlyse the last 20 seperations from the organisation and arrive at the problem areas faced by the organisation. also study whether the change to 90 days notice will help u to overcome the problems faced or will be cutting your own feet
4. these policy changes are not done with whims and fancies . involves deep analysis.
5. approach a nearby management college to study and recommend to u on what should be the best for u.
happy new year,
dr ram
professor HR
3rd January 2011 From India, Indore
Dear Sir,

sorry for delay in reply, but presently i have been facing lot of issues of retention, further some of my ex employees are taking away my present employees who are important for us, also we have products which are important for us where we need trained people, we train the people and then they leave which affects on our production.

Earlier we used to allow the people but present getting the right candidate and training him for 1 month is very difficult for my kind of industry so that i have decided to change the policy.

Raj

M. Haque:

Amend your company's Rules and regulations as per new policy and get it sign to the competent authority and circulate all the employee. Don't forgotten to take signature from all the existing employee. In future issue all appointment letter with clear notice period.[/QUOTE]




This is sheer coercion. You do it with ulterior motive. This will be a breach of the Contract entered with them at the time of employment and it will be a breach of trust. The move is ill intended and base less. The Human Resource is the all important resource. Without it all your other resources are useless. You cannot use your financial resource, plant & Machinery resource, Raw materials and everything else without your human resource. So why coerce the employees to do such a shabby act, just to show your unscrupulous writ on innocent employees.

Bob Gately had also asked you "Why do you want to make the change?". I had also asked the same question. But no reply till now.[/QUOTE]
3rd January 2011 From India
you just cannot simply change or modify any thing ,related to employees. at any time.
for that you should follow certain norms laid down in labour laws. otherwise you will find your self at wrong end of the law.
i think you should get your standing order modified & keep on thing in mind that even when you want to retrench some one you also have to give same period as a notice or salary in lieu therof.
3rd January 2011 From India, Mumbai
Is there any legal action taken on emplyee , when he left job without notice period complete ? Pl. suggesst . Regards, SNEHAL SHAH
3rd January 2011 From India, Mumbai
Boss ,
why you want to make this change. I Have my own doubts about your idea.
1. Have you paid salary to your employees for the last 3 months?
2. how many people are working in your organisation?
3. is there a chance that you are making this rule to ensure that the people who are resigning now due to your non payment of salary for the last 3 months will not get their settlement dues once this is effected?
Sorry , But considering the way today telecom companies are functioning, I have no option but to raise these doubts.
Regards
Prasad
3rd January 2011 From India, Bangalore
There are some other ways to retain the work force. Give them production/sales based incentives. Make their salaries attractive. Give them loans (for House Building, Children Education, Vehicle, House hold goods etc.) for their long term desires. Conduct monthly outings for the families; and a lot of other such benefits and other staff welfare schemes. Start a school and a creche for the children of the employees.
Also cut costs by implementing 5s Audit in your organization. a 5s Audit sheet is attached for your ready reference.
3rd January 2011 From India, Chandigarh

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Dear All
I think Mr. Malik is right. you can not change the notice period for existing employees by a notice without modifying your standing order. it can be challenged anytime by any body.
Question to Mr. Malik:
Dear Mr. Malik
this is my question to you that those who dont have certified standing order and following standing order and model standing order does not say anying about notice period. then what to do?
3rd January 2011 From India, Calcutta
In the Offer of employment / appointment Order, on completion of all the terms and conditions of employment, there will be one last but not least condition. that is
"Company reserves the right of changing/modifying/adding or deleting any of the above terms and conditions without any prior notice"
With that the company can challenge in court also.
Only thing the company have to do is that they have to obtain the signature from each employee in a copy of amendment in terms and conditions effected and file the same in the personal file of each employee as duly accepted for the change.
With warm regards
S. Bhaskar
9099024667
3rd January 2011 From India, Kumbakonam
Dear Raj,
I do not think the procedure is the crucial part, the issue is of change in mutually agreed basic conditions of service which may result in loss of trust between the employer and the employees. It was done in an organization i know of and it resulted in a lot of resentment amongst employees and the organization could not achieve their aim of improving the retention levels rather it lead to more exits and higher attrition.
Regards,
Col IP Singh
3rd January 2011
If you do not have the certifying Stnding Order of your own, then the Industrial Employment (Standing Orders) Act, 1946 and rules framed their under automatically applies on you and your organization is governed by those.
3rd January 2011 From India, Chandigarh
Hi Raj
Why don't you define NOTICE PERIOD POLICY based on EMPLOYEE CATEGORY/GRADE. Please do consider employee hierarchy before implementing your policy as it my ease your job.
I strongly suggest not to force any employee beyond their limits by implementing POLICIES which are not advisable. Since you are also an employee, analyze the impact of this policy on yourself, if implemented.
regards
khadir
3rd January 2011 From India, Chennai
Dear Raj, You draft a change in notice period letter get approval from your Director of General Manager and while issuing please get acknowledgement from all employees.
3rd January 2011 From India, Pune
Dear Please consider the version said by Mr. Khadir Think and act accordingly Because you are also involved in this. With warm regards S. Bhaskar 9099024667
3rd January 2011 From India, Kumbakonam
No. This is no solution. A Boss/GM/Management is one party to the contract of employement and the employee/s the other. Even if the employees o sign the amendment, it is not automatically applicable. You have to get the same vetted from the Labour Inspector Office ( to see whether it conforms to the law or not; it is not a coercive tactic; and it is generally agreeable to the employees).
On the other hand, if all the employees put together a different amendment in their contract to suit their whims, will management agree to that? It is a serious misconception that the management can do what it likes.
Managements that cannot take care of its human resource, cannot flourish. The problem of unexpected exits, higher attrition and staff abandoning the organization, lies somewhere else, and that needs to be attended seriously.
3rd January 2011 From India, Chandigarh
Dear Mr. Surendra
That is the reason we are having a clause in the offer of employment agreement for any change in agreement the company holds the right to amend the agreement without any prior notice and it will be conveyed to the employees for which the acknowledgement will be kept in his personal file of the individual.
Whoever not willing to accept the change they will be given option for quitting the company.
With warm regards
S. Bhaskar
9099024667
3rd January 2011 From India, Kumbakonam
This clause by itself ultra virus as it infringes the right of the workers/employees. If the management does something that is in contravention to the all/any other clause/s of the appointment latter, this clause will have no force and is ultra virus ab initio. How you can alter a contract at will unilaterally?
If management perceives such a right under the employment contract, employee too have the same. Then each and every employee will start dictating his own terms of employment, at any time, at will.
3rd January 2011 From India, Chandigarh
Hello all, Wishing all a Very Happy New Year!!!! I just want to know why do you want to change the notice period.30 days is normal which is followed by most of the Companies. Thanks, Seema Singh
3rd January 2011 From India
Dear Mr. Surendra
Then what is the remedial action required to be taken for enhancing the notice period from 30 days to 90 days. (In my company also after 3 years of service we have to give 90 days notice, failing which our PL will be deducted for such period in short).
Please advise what to do in this case.
With warm regards
S. Bhaskar
9099024667
3rd January 2011 From India, Kumbakonam
You can only make the fresh condition applicable on the recruitment made after the new conditions is announced on the new employees only. To retain the old employees, introduce the incentive schemes.
Please refer to post #7. You have to go by law. The Employees are not the slaves or bonded labour. Even bonded labour is unlawful.
3rd January 2011 From India, Chandigarh
The 30 day notice period is not the problem so increasing it is not the solution.
Even worse, if applicants learn of the 60/90 day notice period there will be fewer applicants to hire.
Applicants will know that the employer is trying to make new hires pay for the employer's hiring and managing mistakes and why should applicants risk getting stuck working for such an employer?
US employees generally give a two week notice or longer depending on the employer's policy of how much is paid when employees are laid off.
Excessive employee turnover is a management problem that must be fixed by changing what the managers do not by imposing new penalties on employees.

3rd January 2011 From United States, Chelsea
Mr. Raj

I have gone through the discussions. First of all if you are covered under the Industrial Disputes Act, 1947,legally you cannot change a condition of service without complying with the provisions under Sec. 9 A 0f the Industrial Disputes Act, 1947, or if a dispute is pending before an authority under the Act ignoring the provisions under Sec. 33 which prohibits/regulates change of conditions of service during pendency of an industrial dispute.

It is advisable to get it included in a tripartite settlement or a bipartite agreement at the time of such settlement/agreement being signed.

One cannot be complacent calling it an internal management policy as it has serious legal consequences. Moreover it is a double edged weapon as you have to give notice or pay for notice of equal period when necessity of termination arises. Resignation is only the counterpart of discharge sipleciter (innocuous termination).

In case you are in a hurry concerning attrition you can do so

following the provisions of law.

In fine, advice without specific knowledge of the case tends to result in vagueness which may jeopardize one's interest.

Dr. Trinath Dash
3rd January 2011 From India, Sambalpur
Hi all thanks alot for sharing your views, specially Mr.Bhaskar & Mr. Bhanot, i would like to know that if i change the notice period only for Manager and above grade in that case do i have to follow the same procedure as labour law. or it is not required.
Raj
4th January 2011 From India
Hi,
The purpose of serving the notice period by the employee is to handover the job to the newly recruited / assigned person, also its the time for the employer / HR to find / replace the position with the right person to take over the job.
Employee who ever resign the job, is always virus to the existing systems, it will spread to all the employees, he will lose the interest of working and he will start giving trouble to others. its been always best to exit him in 30 days.
if you extend to 60 or 90 days, its been difficult for the employee to stay for longer period hence he has to takeup the new assigment. so the employee will choose the alternate option to exit by paying the one / two month basic amount by DD. again it will difficult for the HR person to give replacement in short notice.
Also thers is lot challenges involved in changing this in the standing orders. Pl take your mgmt / superior inputs before act on it.
All the best!
Cheers...!
Regards
Jeyya Shanker
4th January 2011 From India, Davangere
Managers who are out of the ambit of the Labour Laws can be negotiated with to agree to new conditions. But again for the existing Managers, you have to throw a incentive package.
But it is unlikely that they will agree to such a wild Change.
4th January 2011 From India, Chandigarh
I totally agree with smbhappy and disagree with all other suggestions contrary to it.
Regardless of the procedure, even a change to the Standing Order without appropriate consultation and agreement from employees is illegal...
It is a shame that all that us managers could think of is arm twisting the employees to retain them. How many of us are willing to release an offer letter and allow them to join us after 3 months? Is that not a reasonable ask if we expect them to serve a 3 month notice? After all the employee needs to get a job, then resign and serve his notice before taking up a job at another company....
As was rightly pointed out, there are plenty of ways to solve this attrition problem but coercion is NOT one of them.
4th January 2011 From India, Hyderabad
You can only make the fresh condition applicable on the recruitment made after the new conditions is announced on the new employees only. To retain the old employees, introduce the incentive schemes.

Please refer to post #7. You have to go by law. The Employees are not the slaves or bonded labour. Even bonded labour is unlawful.

__________________

Thanks and Regards

Surendera M. Bhanot


See, if we talk about retention, how many of such employees serve even one month's notice even if one introduces incentive schemes? I know a company in which they make all new entrants (existing employees also) enter into a service agreement to serve the company for 2/3 years for RETENTION point of view and in case of breach, there is a provision to pay/realise Liquidity Damage to the company/from the employee concerned. Even after serving the agreed period the employee needs to give/serve two months notice. The company also gives six monthly incentives attached to performance in addition to other retention policies. However, the company faced lot of attrition among the people who were under such service agreement and left even without serving a single day's notice, once his salary is credited to his account. The company also prepared and announced its Exit policy with penalty / legal consequences in case of breach, still the people who wanted to move out, has been doing so without bothering such conditions / incentive schemes / retention policies/ exit policy etc. What I was trying to convey is that provisions for notice period of 30 days or extension thereof for 60/90days would serve only as a psychological pressure tactics to a fewer lot and one can not hold back the people who belongs to 'race horse' category even if you put them under hectic incentive schemes.

Thanks,
4th January 2011 From India, Jaipur
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