Re: Employee Separation

Dear All,
some MNCs have 3 month notice policy for separation. is it a good policy?
Thanks,
Jivan

Notice Period Varies from Company to Company,,
Most Companies have 1 Month.
Not Ony MNC, even Indian Companies (ICICI Infotech) has 3 months Notice Period,,,,

Very true.. Peer Saab..
It varies from Company to Company..
It totally depends on company policy...

Notice period should be equal from both side. That is, if the notice required to be served by an employee to get separated (to leave) is three months, then the notice which should be served on the employee to retrench should also be three months.

It is common that freshers need to serve or need to be served only one month notice whereas those who are employed in the posts of high profiles need to serve or be served three months notice. This is because, replacement is easy for a job which requires only less experience whereas it is difficult for a job which requires highly experienced personnel. Since the very purpose of notice is to get employer sufficient time for replacement or to allow employee sufficient time to find an alternative job, the above policy has significance and logic. However, some companies (Indigenous Companies also) insist on three months notice from employees side whereas they send the employees out without notice saying that "you were on probation". This is wrong.

Regards,

Madhu.T.K

Legally and as per Industrial Disputes Act, an employer is suppose to give notice or pay notice pay in lieu of notice. But there is no law which says that an employee should give notice before leaving.
Here, for an employee it is more like a moral responsibility to inform his employer in advance of his leaving. Even if there is specific clause in the appointment order insisting an employee to give notice or pay in lieu before leaving, there takes place an arrangement whereby the same is waived. Of course, many employers do demand from the employee the so called notice pay by threatening the employee that no relieving order will be issued, no PF form will be forwarded and like. Certainly, issuance of service certificate and relieving order is employer's right but in no way the employer can hold PF forms submitted by the employee.
I am sure that in India, no employer has ever taken any legal step against employee to recover notice pay.
Regards,
Madhu.T.K

Yes Madhu, you are correct. I don't think any companies have done that. Least they will threatned an employee with legal letters or so.
I also agree that 3 months from employee and 1 month from employer are absolutly not fair. All working class collegues if united can make this change by not accepting any offer which has this disparety. Very difficult proposition, but somewhere somehow somebody has to start this.
Infact, this should be also clearly mentioned in the labor act, as we currently have in Saudi Labor act. An Act which stands as an example to our Indian Labor act. I will post the same for study of our HR fraternity.
Ukmitra

"issuance of service certificate and relieving order is employer's right"
Thanks Madhu for your very informative response. One more querey related to this. Take an example. In a company the notice period from both employer and employee side is 2 months. Ideally if the employer want to terminate/release an employee, it will offer the basic salary of two months and release him/her immediately. Similarly, if an employee wants to quit immediately and places his resignation and ready to pay the two months notice do he has legal right to get releaving letter/Service certificate with immediate effect?
I am asking this since in my company usually the employer holds this right but employees does not. If employee resigns and even if he is ready to pay for remaining notice period, the releaving right remains with the employer, and consequently emplyee often loose the new opportunity.

The practice of holding employee despite his offer to pay two months salary in lieu of notice is unfair and should not be entertained. By that act of employer, if an employee loses a good opportunity, the employer may be bound to indemnify.
But the initiative should come from employee since there can not be any general awareness in this regard among the employers.
Regards,
Madhu.T.K