Notice Period Dilemma: Can Employers Extend It from One Month to Three Months?

Is it possible to increase the notice period from one month to three months, even though in the appointment letter, it is mentioned as only one month?

Go as per your appointment letter. Maybe it's for new joiners if HR people have not given you the new letter. You can clear your doubts through HR members of your company.

Regards,
Trapti

Yes, it is possible to increase the notice period from one month to three months. The HR department just has to design a Standard Operating Procedure (SOP) for the same, mentioning that as per clause no. XYZ, we would like to inform you all that the notice period has now been changed from one month to three months. Please also cite the reason for this change.

Additionally, issue a letter to all the employees and obtain their signatures on one copy, which should then be kept in their personal files. For new joiners, you can issue new appointment letters stating a three-month notice period.

Regards,

Hi, as Archna mentioned, the notice period should be increased. One suggestion is to modify the appointment letter to include the statement, "Any modification/time-to-time modification in the policy must be applicable to all employees." Additionally, please create a circular regarding the new/changed policy.

As the appointment letter is an agreement/employment contract between employer and employee, no subsequent change can be effected by a single party without the acceptance of the other. A unilateral decision by an employer is not binding on the employee.

Any change in the service condition taken unilaterally by the employer will be termed as ex parte and cannot withstand legal scrutiny.

Also, as per the Industrial Dispute Act 1947, the management cannot alter the existing service conditions without giving 21 days' notice of such change.

According to me, a 90-day notice period is unfair, and this cause should not be supported; neither is this step going to solve any problem. Even the Hon. Supreme Court and a few High Courts have termed a 90-day notice period as an unfair labor practice. I doubt such employment conditions are possible to implement.

Dear Archna,

Just preparing a standard operating procedure (SOP) and taking a signature of employees is not enough from a legal point of view. Issuing a circular/notice and taking the signature of employees means you are just intimating them about the change in service conditions. It does not mean acceptance of the same.

To avoid future trouble, there should be a clearly worded acceptance clause like:

I, [Name], have read, understood, and accept the change in the service conditions...

Regards,

Of course, the change in the notice period is possible for the management to implement as a policy, but that would be applicable only for future employment unless you have also accepted it. Legal complications will arise as the management cannot unilaterally enforce a change of agreement terms already entered into with you unless voluntarily consented by you. Since it would be equally applicable on both sides, you will also have to accept one month's notice instead of three months' notice if the management desires to terminate your services on its own. In that case, you can't insist that the management pay you a salary in lieu of the remaining two months of the notice period.

Regards,
PS Dhingra
CEO cum Management & Vigilance Consultant
Dhingra Group of Consultants
New Delhi
[Email Removed For Privacy Reasons]

Changing Terms and Conditions of Employment

Management cannot change the terms and conditions of employment without the written consent of the existing employees, especially when it comes to changing the notice period. Each employee must be informed in writing about the change, and it should be accepted by the employee. Any changes made to their employment conditions should be communicated clearly.

Regarding new employees, the new employment letter shall contain a 90-day notice period.

Regards,
V.P. Rao

Kindly go through the reply written by me once again. I have clearly mentioned that the employer should issue a letter to all the employees, not just notifying the change but also confirming their acceptance of the same. This is a legal practice and is used by many companies as a retention strategy. It is a different matter that a 90-day notice period does not contribute much as a retention strategy.

Regards,

Dear Archna, No issues  ... but this is what I read in your input: "Also, issue a letter to all the employees and take their signatures on one of the copies and keep it in their personal files."

Regards, Kamal

Hi all, as per my understanding, there should be a circular stating that we are going to increase the notice period from 1 month to 3 months before issuing new letters to existing employees. Moreover, if the current employees don't agree to this, then how can it be amended?