NOTICE PERIOD - company is not providing the buy-out option - CiteHR
Umakanthan53
Labour Law & Hr Consultant
Shiva.ssk17@gmail.com
Design Engineer

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At the time of appointment in June- 2013, it was mentioned in the offer letter that i need to serve a notice period of one month if i put my resignation . But company has revised its notice period policy to serve 3 months in June 2016. (Mentioned in email : For the purpose of terminating this employment, either party will be required to give notice of three months in writing, or salary in lieu thereof to the other party.)
I've kept my resignation recently , am ready to serve one month and pay the rest ,but company is not providing the buy-out option.
AM i eligible for 3months notice period ?
please suggest me how can i proceed legally ??

Dear Shiva,
You've not mentioned in what capacity you are employed - as a workman or otherwise. Company can revise its policy of notice period for exit depending upon factors like attrition rate. But in respect of workman category, it would amount to change in service conditions and as such the provisions of the Industrial Employment (Standing Orders ) Act,1946 or the Industrial Disputes Act,1947 have to be followed before effecting such an unilateral change. In other case, no such restrictions.
In your case, partial buy-out option is available to you as per the content of the e-mail you mentioned. If you are not bothered about the effects of any confrontation with your management in this regard, what appears to me is that you can legally exercise the buy-out option. Remember, our adversary always engages us into a fight against our weakness only.

Since you are a senior engineer as of now, you belong to supervisory cadre, if not managerial. So you are covered by the revised condition of exit only. Why your management refuses to accept your offer of one month's service plus two months' buy-out has to be explained only by them. At times people may resort to reading of the letter of law without understanding the logic and might be under the wrong interpretation that buy-out means only the entire three months.So, try to convince them once again. Any way your option to fulfil the notice condition the way you expressed is quite legal.
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