Employee Resigned Before Notice Period Extension Was Formalized – What Should We Do?

We are a software company based out of Bangalore. Actually, one of our employees was deputed to our client's place and received a salary hike a couple of months back. During the appraisal, he had agreed orally that he would serve a notice period of 3 months. Upon his oral approval, we revised his salary. Prior to that, the notice period tenure was 2 months. He has not yet collected his notice period extension letter. The day before, he submitted his resignation, but our clients are not willing to release him before the completion of 3 months.

Eligibility for a 3-Month Notice Period

Is he eligible to serve a 3-month notice period? Could anyone guide me on how to proceed further?

Regards,
Sudhar

You should have served him the amendment letter to his appointment letter and obtained his signature as a token of his acceptance. Now, there is no written agreement on the notice period between both parties. In my opinion, the notice period already agreed upon will only prevail. Verbal agreements do not have legal sanctity.

Pon

You should have asked him to send an email summarizing the discussion and its outcomes after the appraisal review. Based on that, you should have revised his salary. As Pon mentioned, verbal agreements are not considered at any level or cost.

Is he eligible to serve a 3-month notice period?

With respect to your query, only if your company policy states that the employee must serve a 3-month notice period is he eligible; otherwise, he is not eligible.

Regards,
Harsh

Company Policy Implementation Challenges

Even company policy, until and unless communicated and agreed upon, will be difficult for the company to implement because it falls under service conditions.

Oral discussions and agreements are not considered. As per your communication, you cannot ask him to work for 3 months; two months is only his notice period.

Regards,
Kamesh

We are pleased to inform you that the organization has revised its People policies with effect from August 2011 and, as a consequence of this revision, clause/section 8 of the appointment order dated ______ has been amended as follows.

Clause No: NOTICE PERIOD

This contract of employment is terminable, without reasons, by either party with a notice period of THREE months' notice on confirmation. Companyxxxxxxxx reserves the right to pay or recover salary in lieu of the notice period. Furthermore, if the notice period is not adhered to, the employee would not be eligible for any compensation on performance incentive, bonus, on-site allowance/perquisites offered by the organization as part of the contract. Additionally, the Company may, at its discretion, relieve you from such date as it may deem fit even prior to the expiry of the notice period.

Kindly review and let me know if any more changes are required.

Regards,
Sudhar.