Can My Company Change My Notice Period from 1 Month to 3 Months Without Consent?

Dear Seniors, can the company increase the notice period to 3 months even though it has been mentioned as 1 month in the Appointment Letter?

Regards,
Deep

Companies can change their HR policies. However, they should make amendments to the appointment letters and obtain acceptance from the employees.

Regards,
Pon

Notice Period Extension in Appointment Letters

Most appointment letters include a clause stating that changes can be made at the discretion of the management. Therefore, if a company decides to extend the notice period from one month to three months, they are within their rights to do so. On humanitarian grounds, the company can ask the HR department to conduct an employee session to convey the reasons for implementing such a change.

Most employees switch companies frequently, which can be troublesome for employers. As a result, many employers prefer to extend the notice period to three months.

Dear Friends,

Is it fair that the employer recovers the notice period from the gross salary?

In my appointment letter, there is no explanation that the notice period will be deducted from the gross salary. It is only mentioned that if an employee wishes to switch jobs before three months, the employee has to pay three months' salary.

What are your opinions on this matter? If I do not pay the gross salary, they will not release me.

So, what can we do in this case? Please give your valuable advice.

Regards,
Bhavin Parmar

Hi, the company cannot unilaterally change the terms of employment. The employee has to agree to it, especially where it is a critical item like a change in the notice period. The offer letter/appointment letter is a contract based on which the employee has joined the company. So naturally, it cannot be changed by the employer at his whims and fancy.

In general, notice period recovery is usually based on the basic salary unless specifically mentioned in the appointment letter. However, there is no statutory rule available to defend this.

Pon

If a company has a staff strength of 50, is it legal to require a 3-month notice period?

Thank you.

[QUOTE=pdteraiya;1579911]

If a company has a staff strength of 50, is it legal to implement a 3-month notice period?

AFAIK, there is no legal provision available for a notice period. However, as per the ID Act, if you are retrenching a workman, a one-month notice period shall be served, or you should pay them 1 month's wages in lieu of the notice period.

Pon

It is not mentioned in my appointment letter. It is just written as 3 months' salary. So what should we calculate? Basic or Gross?

It is not mentioned in my appointment letter. It is just written as 3 months' salary. So what can we calculate? Basic or Gross?

Considerations for Notice Period Calculation

In many organizations, only the basic salary is considered for the notice period. In your case, the word 'salary' may be interpreted as Gross salary if they wish to do so.

Regards,
Pon

Can anyone help me explain how the notice period works? I mean, what rights does a company have if an employee gives a 3-month notice period? Can the company withhold the salary until the employee completes the 3 months?

Industrial Establishment Standing Orders Act 1946

Under the Industrial Establishment Standing Orders Act 1946, it is mandatory to declare the method of termination of employment. An offer of appointment is issued based on the registered service conditions of employees (Service Manual) - Main and Supplementary. For any change in the service manual, the same should have the consent of the employer's representatives (i.e., management), employees' representatives (i.e., union/association), and government representative (i.e., Labour Commissioner).

Notice Period and Consent

To increase or decrease the notice period, consent from all parties is required. In case there is a provision in the service manual that both the employees and the employer have to give a notice of three months for quitting the service, they have to do so or give notice pay in lieu of that. If the employer gives a notice of one day and asks the employee to leave the company without assigning any reason, it could be construed as an industrial dispute. The employee can file a writ for the violation of fundamental rights and get reinstated pending the issuance of a charge sheet.

Understanding Notice Pay

Regarding notice pay, notice pay means the basic pay fixed for holding a substantive post in a time scale. Other allowances such as DA, HRA are allowances and not pay; medical benefits, school fee reimbursements are fringe benefits and not pay. In my opinion, when we are referring to pay only (notice pay), we should consider pay only. When we talk about salary, we should consider salary, and when we talk about wages, we should consider wages.

Deepu, the query you made is valid only for a certain aspect because the company policy is invalid under the laws, i.e., the policy shall be questioned by any employee in front of the court. In India, as a democratic country, it is our right to work, and employees can change their working places according to their will.

Company Policy and Legal Implications

Then comes the company policy; it acts like just a policy and doesn't have any legal entity. So, don't waste your precious time, don't waste your opportunity, go ahead and catch the stars.

Well wishes,
Linnan Kochi

Dear Seniors, thank you all for your valuable replies. My directors want to enforce immediate termination of employees without a 1-month pay, 3-month notice, or 3-month gross salary from the resigning employees. Although the company has the right to amend its policies, is the above policy justifiable?

Regards,
Deep

Resignation and Termination Notice Periods

Resignation and termination should have the same clause with regard to the notice period. The proposal made by your directors is not in line with good HR practices. Even the ID Act stipulates a 1-month notice period for termination if the workmen/employees have completed 240 days of service.

Regards,
Pon

Dear Pon, it is not mentioned in my appointment letter. It is just written as 3 months' salary. So what can we calculate? Basic or Gross?

Clarification on Salary Calculation

Dear Bhavin, as per your appointment letter, it is clearly stated that the 3 months' salary is based on whatever you are receiving every month. For instance, if you are getting a gross salary, it refers to the gross salary, and if you are receiving a basic salary, it pertains to the basic salary.

Regards,
Vaishaali