Hi, In my forthcoming stint I came across an interesting clause in my employee agreement as per below:

"The company may terminate the agreement by a 30-day notice of termination to the employee and the employee may terminate this agreement by a 60-day notice of termination to the company."

I've always seen that both parties have to issue the same notice period. Wanted to check if this is allowed?

From India, Mumbai
Dinesh Divekar
Business Mentor, Consultant And Trainer
Management Consultancy

Dear Narc-Myopia,

Under the provisions of the Indian Contract Act, 1872, an appointment letter is a "contract".

The principle of equal consideration is one of the basic principles of the law of the contracts. Its essence lies in finding a fair balance in the exchange between parties when establishing bilateral (consensual) contracts parties.

In the proposed agreement, regarding the length of the notice period, a fair balance does not exist between an employer and an employee.


Dinesh Divekar

From India, Bangalore

Section 10 of the Indian Contract Act 1872 reads as follows:
"10. What agreements are contracts.—All agreements are contracts if they are made by the free
consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void."
Examined from the above provision, having different notice periods though unfair and unjust, is not illegal per se. This is a widely prevalent practice across the country.

From India, Mumbai
First of all, are you in the bargainable category or non-bargainable. If you are in the bargainable category, then law prevails and notice period is equal for both. If you are in non-bargainable category then employer can put any term and condition agreeable to both. At the time of signing the appopintment letter, had you objected to that clause? If not then it is difficult. Consider, if there is 3 month notice for both and employee leaves before end of 3 month period. What can the Employer do? Wisdom is let it go. Law is agreement cannot be violated unitalterally.
From India, Pune

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