Is It Fair for Companies to Have Different Notice Periods for Resignation and Termination?

I have a query: my company has decided that if an employee wishes to resign, the notice period would be 3 months. However, if the company wishes to terminate someone, the notice period would be 1 month or even less. Is that legally right?

Please reply.

It depends on companies' HR policies. If it is maintained in the HR Manual, then it is legally right.

Regards,
BG

We are in the process of formulating HR policies, and while this topic came up, this is what was decided. Can any employee challenge this?

As per my knowledge, the notice period should be equal for the employer and employees based on the natural law of justice. Dear expert, your comments on the legal point of view would be appreciated.

Abedeen, you are right. Any policy acceptable to both the employer and the employee will have the sanction of the law; otherwise, it will be categorized as unilateral or arbitrary.

Pon

Is there any law that I can quote to tell the management that this is wrong and get the policy reframed?

As far as I know, there are no guidelines in various laws. The Industrial Disputes Act merely speaks about retrenchment, wherein the employer shall provide one month's notice or pay in lieu of.

Pon

Seniors, please share your views on this and let me know if we can have different notice periods from both sides.

Yes, it is true to say that the notice period should be equal for both the employee and the employer. This three-month policy is just to make the exit of an employee a little harder because if an employee wants to move and gives an interview for another organization, they will wait a maximum of one month for that employee to join. They won't have any choice but to resign before the required notice period lapses. This should be reasonable and should have some rules governing it too.

Notice Period Equality
The companies should not have the power to choose the notice period arbitrarily.

Different companies have different rules. There is no hard and fast rule that the notice period for the employer and employee must be the same. As someone quoted, if the employer meets the requirement of the law (i.e., giving one month's notice) before asking a person to quit and abides by that, then they are certainly following the rule. However, concerning the employee, if they are required to give 3 months' notice, and if they accept the appointment letter by signing, then the employee must adhere to it.

Regards,
Balaji

Good Morning! I wish to inform you that the notice period has to be equal for both parties to the contract. The employee can challenge the employer in court for violating their Fundamental Rights provided by the Indian Constitution.

Fundamental Rights of the Indian Constitution:

Article 14: Equality before law – The State shall not deny any person equality before the law or the equal protection of the laws within the territory of India. Equality before the law implies that no one is above the law of the land.

Please advise your employer to keep the notice period equal.

Regards,
Hemant Raakh
Sr. Manager - HR
United Spirits Ltd., Nashik
"Helping hands are better than praying lips"

We have the same condition in our appointment letter. However, recently we have updated the notice period from one month to three months from the employer's side. The notice period should be the same on both sides, i.e., for the employer and the employee.

Regards,
BP

The serving of the notice period is equally treated for both sides. The period of the notice period may differ from company to company, but it should be equal for both the employee and employer. Any unavailed leave may be adjusted during the notice period, and only the balance period should be considered for compensation on either side in lieu of the notice period.

Separation Terms and Notice Periods

Separation terms cannot be biased. They must have equal weightage for mutual benefit. The notice period has to be the same for both parties as per the principles of Natural Justice. Otherwise, if any employee seeks legal recourse, the company will be in a difficult situation.

Regards,
NKT

The notice period is equal for both sides, i.e., for the employer and the employee. The period of notice may differ from company to company, whereas the notice period is equal for either side to serve. Any unavailed leave or balance leave on credit may be adjusted within the notice period for the purpose of calculation for settlement.

Regards,
T. Kumar (Jagdish)

Notice Period

In our appointment order, we clearly state that one month's notice or one month's salary is a condition to leave the job. However, some staff are leaving the service without any notice and joining a new company within two or three days from the date of submission of their resignation.

Experts, please advise in this case what the legal rights of the company are. What are the benefits that the company can withhold from employees? Is there a letter draft available to send to such employees leaving without any notice?

As per the law, a company can enforce a 3-month notice period if the employee count is 100 or more. The notice period remains the same for both employees and employers.

Even my company acts in a similar manner, where if an employee wants to leave, he/she has to give 3 months' notice. However, if the company terminates an employee, the notice period is only 1 month.

Being an HR professional, I believe this policy is fair because if a company terminates an employee, there must be a significant reason for it. It signifies that the employer no longer requires the employee's services. Such an employee then becomes a liability for the company rather than an asset, and the risk of losing a good replacement candidate due to the 3-month notice period also increases.

Additionally, consider the expenses involved; the company would have to continue paying the salary of an unwanted employee.

Thank you for your attention to these matters.