Labour Law & Hr Consultant

Kindly help, keeping the below-mentioned clause in the appointment letter is ok or not?


You may resign from the services of the Company at any time, by giving a one-month notice period. Notice period shall become effective from the date of receipt by the Company, of the letter of resignation. If you do not serve the notice period mentioned, the Company shall be entitled to set off from any payments to be made to you by the Company upon termination, the proportionate salary for the notice period not served by you.

Please note that the notice period is mandatory and non-negotiable. The Company may, having regard to the facts and circumstances and entirely at its sole discretion, extend the notice period if required. During the notice period, you will not be entitled to any leave.

The Company, at its sole discretion, may choose to relieve you any time during your notice period."

From India, Gurgaon
Dear Surbhi,

The suo motu extension clause of notice period at the sole discretion of the employer is arbitrary and hence illegal. The notice clause in all respects as applicable on the date of submission of resignation only would be applicable.

Leave is a statutory or contractual employment benefit available to an employee as long as he is in service notwithstanding phases like probation, notice period etc. Therefore, the clause containing total prohibition of leave during notice period is illegal.

Relieving an employee who is actually serving the notice period on account of his/her prospective resignation amounts to a counter offer on the part of the employer which requires the acceptance of the concerned employee. In such a contingency, the employer should pay for the unserved notice period and then relieve. This clause needs modification accordingly.

From India, Salem
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