Non Compliance of Serving Notice Period - Keen to know the industry practices - CiteHR

Hi, Our company has a policy of 1 month to 3 month notice period based on the employee tenure in the organization.

Employees in the 1st year of employment have 1 Month notice period.

Employees who are more than 1 year of service 3 Month notice period

Both these terms are part of the appointment letter. However, of late few quit the company immediately after taking their salary. Most of them don't have adequate leave balance in their account.

Due to the pressure of work and stress, they choose to quit the company with or without a job.

Management is bent upon making the employee serve the notice period.

I have suggested to the management the legal route is not recommended for the organization. Rather we focus on the corrective measures of retaining talent.

However, management feels if you give a waiver to one person. The practice of the notice period will be diluted.

I am sure a similar situation might be there in other organizations. Keen to know the industry practices.

Our is a service-oriented organization and most of our employees are in executive cadre.

Thank You

Regards
Arun

From India, Madras
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Umakanthan53
Labour Law & Hr Consultant
Saswatabanerjee
Partner - Risk Management
Rkn61
Hr Manager
Sandyk857
Manager Infra & Facilities
HROne
Content Marketing Strategist
KK!HR
Management Consultancy

KK!HR
1266

Insistence of management on serving out the notice period has to be uniformly applied and making exceptions here and there would be counter productive. Any exception would be quoted out of context and you would be hard put to defend them. Apply the rule uniformly but in deserving cases you can show some other consideration say in leave encashment or payment of proportionate bonus/incentive etc.
From India, Mumbai
Hi KK Thank you taking out time and responding to my query. Regards Arun
From India, Madras
Dear Arun,

I think that you have just indicated the primary reason for the sorry state of affairs though not elaborating it for obvious reasons.
Always recruitment of the right employee for a right job is a tricky affair. Unless proper attention is paid to the prospective appointee's capabilities to withstand the job stress and work culture of the organization in terms of his academic qualifications, initiative, experience etc., you cannot expect him to treat his employment with the organization as a substantially long term affair. No organization should allow itself to be a haven for job-hoppers.
Therefore, in my opinion, the most dispassionate and immediate remedial measure would be to look into the actual reasons for the employee turn over such as inadequate staffing, excessive supervision, lack of promotional avenues to smart employees, relatively lesser compensation package, rigid rules of discipline and other factors making the employees soon disengaged.
I would like to state that in case of higher rate of employee turn over, it is better to find ways to retain them rather than to make them strictly comply with the notice clause of exit.

From India, Salem
rkn61
498

While I strongly agree to the view point by our learned member, Mr. KK!HR,
i suggest that the separation clause should be clearly incorporated in the Offer of
Appointment. Instead of 1 months notice period for 1st year and 3 months notice period
for more than 1 year of service, you can put 1 months notice period during the period of
probation and 3 months notice period, on confirmation of services.

Also, though not ethical /legal, you can consider collecting one original document
from the new joinees, so that this type of unethical separation (after collecting salary)
could be curbed to a large extent.

From India, Aizawl
I too agree that notice period must be enforced for everyone.

However, it is not easy because even if you take legal action, it is a civil case where your cost on lawyer fees will probably be more than the amount you seek to collect. The courts will not order the employee to work for 3 months, but at best will order payment of notice period salary.

One action is to give a negative BVG response, which is meaningless if the employee is joining some place where BVG is not done or he has told HR that he left without completing notice period. Further if people know you give negative feedback, they may decide not to work with you anyway (and the information spreads pretty fast on internet)

What is then left for you to force the matter? Practically nothing. You need to explain this to the employer.

And if your employer is recruiting and during recruitment insists on immediate joining, asking for notice period is laughable. The employee knows what your attitude to it is.

From India, Mumbai
Lets be realistic!! 3 months notice period is too much for the entry level role, that why employee prefer to abscond rather than to serve this long notice. In the fast moving world, everyone has their own commitments (Personal/Financial) & stopping them from achieving it is not something that any employee centric company would do.

You can workout on the notice duration & make a Win-Win situation for both employee & employer.

Individual contributors like (Associate/Analyst/ Executive) - Make 30 days notice period.
Management Roles like TL, AM & Managers - Make 60 days notice period.
Sr. Management Role like Sr. Manager & above - Make 90 days notice period.

Hope, this will help!

From India, Thana
HROne
10

The notice period is the minimum amount of time that must pass before an employee's contract can be terminated. It varies from company to company and from state to state, but it is generally at least 30 days unless a contract has been signed that stipulates otherwise.

The repercussions for non-compliance with the notice period are serious. They include:

#termination of the contract being considered "unfair"
#damages paid to the employee
#the employer is required to pay wages for the remainder of the notice period

It is important to keep note periods in mind when terminating an employee's contract, as they are legally binding, and failure to comply with them could result in significant legal penalties.

The repercussions of not complying with the notice period depending on the amount of time the employer gave you before terminating your employment. If the amount of notice given to an employee is less than what was stated in their contract, then the employee can ask for compensation from their employer. However, if an employee quits their job without giving notice as per their contract, then they will have to give up any severance (payment), benefits or bonuses that were supposed to be provided to them by their employer.

Also Read: How To Stop Candidates From Backing Out During Notice Period?

From India, Noida

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