Is It Fair for My Company to Change the Notice Period Without Agreement? What Can I Do?

Hi Friends, my company suddenly changed the notice period from 1 month to 3 months and informed us by sending an email at 7 PM on Friday. On the next working day, I resigned from the company citing personal reasons and refused to accept the new notice period, requesting to be allowed to serve the original 1-month notice period. The company refused, and I stopped going to the office after prior intimation. Now the company is withholding my experience letter and relieving letter. Is this correct? What should I do?

Employment Contracts and Unilateral Changes

I have said before that employment is a contract between the employer and the employee. Therefore, there is a mutuality of essence in the terms and conditions that bind the parties. Under such a case, no party can alter any of the terms or conditions unilaterally, especially to the disadvantage of the other. The change effected by your employer is patently illegal, besides being unfair and unethical.

Regrettably, if you are not a "workman" under the Industrial Disputes Act 1947, your remedy lies only in the civil court. The way the judiciary works in our country, even if you lodge proceedings against the employer and even if you win (which you will, in this case), it will take a long time, will entail costs to you, and lawyers will become rich through "appearances rather than decision!"

For this reason, it is futile and uneconomical to fight even a just cause as you have a career ahead, and your future employers may look at your profile with caution (getting scared with someone who has the courage to proceed against an employer). Your chances could diminish! Fair employers will not be scared once they know the facts, but locating such fair employers does take time.

In your case, you have "fired the shot," and after doing so, you are trying to "aim." I wish you had used a reverse sequence! In the present situation, you have to find other ways to get over the problem of "experience letter," "F & F," etc.

You have my sympathies, but I do feel that you learn that "thought" must and does precede "action."

How else may I be of help?

Regards,
Samvedan

September 10, 2011

Dear Samvedan, can Mr. Thilmaran go to the labor inspector/Commissioner with his appointment letter and resignation letter, and what feedback did he receive from the company? Please let me know.

I am of the opinion that he cannot go to the Labour Office as that is a statutory agency for dispute processing for employees (workmen under the Industrial Disputes Act 1947) and employers that conform to the definition of "industrial dispute".

I say this on the assumption that he is NOT a workman under the Industrial Disputes Act 1947. If that changes, my response would change!

Regards,
Samvedan
September 10, 2011

Dear Thilmaran, In many unprofessional companies, these tactics are adopted to pressurize employees who are leaving the services, as well as those planning to seek alternative employment. In your case, you should speak with your HR person and try to convince them that you had committed to the new company based on your present company's appointment letter, where one month's notice is clearly defined. If the present company does not release you according to the appointment letter, you may lose the job, and your current company's image will suffer in other industries. Try to negotiate, suggesting that you can work an additional 15 to 20 days if possible, with your present company's approval. Contact higher HR authority to resolve this issue instead of considering legal action, as legal processes take time and may sour relations with your present company, potentially affecting your new job. Think balanced and seek practical solutions. All the best.

Regards,
Dinesh Shitole