Notice Periods in HR: Can You Share Your Insights on Managing Them Effectively?

Hello dear,

Sir and Ma'am,

I am Sagar, currently pursuing my MBA in HR from Mumbai. We have just begun our 3rd semester, and I lack understanding about the Notice Period and how to handle it. Could you knowledgeable individuals from this talent pool of HR shed some light on Notice Periods and guide us on how to manage them effectively? This knowledge would provide me with an extra edge as I aspire to specialize in core HR and am very passionate about the field. I would greatly appreciate it if you could share your HR insights with me.

With Regards,

Sagar

When an employee resigns from the organization, he has to serve a notice period. It means he has to hand over the charge of his work to a new employee so that the organization does not face any type of problem due to the work. It is just for the smooth functioning of company work.

Thank you, Rohit Sir, for defining the basics of Notice Period. Now, will you please tell me what is 'Buying of Notice Period'? I have heard many things about it, but none of them cleared my concept about the same. So, will you please extend your guidance on the same.

Reply awaited,

With Regards, Sagar

Dear Sagar,

When an employee resigns from their job, it is not compulsory to serve a notice period UNLESS AND UNTIL THE CLAUSE FOR NOTICE PERIOD IS CLEARLY MENTIONED IN HIS APPOINTMENT LETTER OR CONFIRMATION LETTER.

In some companies, there is a 15-day notice period clause, while in others, there is a 30-day notice period, i.e., a one-month notice period clause. It depends on the type of clause mentioned in the employee's letter. In most cases, or you can say in most companies, there is a 30-day, i.e., one-month notice period clause. This means that when an employee resigns from their present job and is subject to this clause, they have to serve their present company for the specified period, i.e., 30 days. If they do not wish to serve this period, they have to pay one month's salary (gross as mentioned in their letter) to the company.

Now, regarding your next question about Buying of notice period: to buy - to purchase. If an employee has a 30-day leave balance at the time of resignation, they can compensate/buy the notice period clause. This is from my point of view.

Thanks,

Vinod K

Hi Sunny,

It was nice to hear that you are really passionate about the HR field. Appreciated...

Notice Period:

This is the tenure of service after resignation by an employee or termination from management. It is stated in the Offer and Appointment Letter of the candidate and is applicable to all employees, as per the company's HR policy. Normally, the notice period in MNCs is 3 months, while in other companies, it varies from 30 days to 90 days. The notice period is necessary to hire a new person, train the new employee, and hand over the responsibilities.

One can buy notice period: either the employee who is resigning or the organization that is hiring the employee bears the amount of the notice period if the relieving date is within the notice period.

Organizations have different notice periods for trainees/employees on probation. Normally, it is 7 to 15 days only.

Example: Mr. X has been working with ABC Ltd. for the last 2 years. He has not availed of 2 leaves to date. As per the company policy, annual paid leave is 24 days. He resigned from the job and requested immediate relieving from the current job. The notice period he has to serve is 30 days as per the company policy.

Now in this case, the following will be done:

He had 46 PL in his account (24 PLs per year, i.e., 28 - 2 days leave = 46).

The notice period he has to serve is 30 days (which is less than the PL balance).

So, in this case, the organization has to pay him 16 days' salary, and he doesn't have to serve the notice period, as the same is compensated by the PL balance.

If the balance PL is less than the notice period, then he has to serve the balance days, or he can pay it (notice period - PL balance = days' salary he has to pay or serve the job).

Normally, the payment base is the basic salary of the employee per day.

Hope this will help you.

BEST OF LUCK FOR THE FUTURE.