Increase In Notice Period

Dear Seniors,
Some of our employees are serving the notice period of one month and getting relieved. Now the management feels, the notice period must be increased to a minimum of 2 months for managers and 3 months for senior managers...
now would need to mail everyone informing about the same- can anyone please help me with a format for the same..
also would like to know if i can get a format of the same for individual employee..

you will be faced with several questions while implementing a increase in notice period, few of them are:

1. do you peg notice period against basic or gross salary ?

in a good firm, it is on gross..

most companies try to save by pegging on basic.

2. do you have a succession system in place

ideally every position starting from domain level expert should be covered.

3. security is one of 9 career anchors (RSI).. it has nothing to do with position/ industry/ education/ experience etc

4. to save on costs, at one of my former employer, we used to skip one level while staffing.. eg if we have a manager, we will skip sr manager position n have a VP in place.. if we have a supervisor, we will skip Asst mgr and have a mgr in place...

you have highlighted a 1 month of increased notice period between 2 consecutive ranks (manager n sr manager)

5. a good practise in exit interview is "it needs to be conducted by a 3rd party vendor, 3-6 months after the employee is firmly settled in his new position" ..

Provision can be changed/replaced by altering Certified Standing Order and make applicable to existing
employees. Pls go through I.E. Standing Order Act as well for reference.
For new joinee, add provision for notice period on existing appointment letter as per designation.
good luck!

Dear All
I want to make a Training Policy in my company.we are in to Textile trading sector.we are importing a machinery from China
And for machine training we need to send our engineers to China. for 1 month.
I want a guidance to frame a policy.as now we have a policy to cut sepecific amount in salary for 10 months then engineers need to furnish remaining amount. but its can not completly implemented.
Kindly revert back

You can change the notice period of employees by giving a notice as per section 9A of the Industrial Disputes Act. The said notice is required to be given 21 days before effecting such change. You can also make such change by amending the certified Standing Orders, if you already have a standing orders for your company.

Under both these there involves a risk, that is if you give a notice of change as per section 9A, the employees affected by such change can object it and when an objection comes it would be regarded as an industrial dispute. When an industrial dispute is raised, the question will be on what ground it has been raised. Notice period is a subject which has no relevance in Industrial Disputes Act or any other Labour Act and what is present is that "an employer is bound to give notice to its employees when he wants to retrench his employee(s)" and there is nothing in the Act to show that an employee is bound to serve notice. In such a circumstance, the objection by the employees will sustain and employer's plea will be rejected.

Now, if the notice period is as per per a written or even an oral conditions of contract of employment, then also the issue will be decided in favour of the employees because the existing contract of employment says that the employee can leave the establishment by serving one month notice.

In another chance, if you have a certified standing orders and you wish to amend the clause of notice period, then also you need the concurrence of employees and without their consent you cannot amend it. Sometimes, the employees may agree to make an amendment with a condition that the same one month notice period would apply to those who have joined before the amendment and for every new joinee, the proposed notice of three months shall be applicable.

However, nothing above said would be applicable to employees in Managerial capacity to whom ID Act will not apply.

Regards,

Madhu.T.K

You have specified that the Management ants to change the Notice Period in respect of Managers and Senior Managers
In this case, there is no need for 9A notice and change in Standing Orders These Employees generally are not covered under these provisions
Issue individual letters stating that with immediate effect the notice period on both side is chnged to 2 months/3 months. Get the duplicate copy signed by the employee E mail may not help
Thanks
Sivasankaran