Notice Period Under Industrial Disputes Act
Notice period is not a subject of the Factories Act but the Industrial Disputes Act, and it applies to all establishments, including factories, mines, shops, and commercial establishments, etc. Unless otherwise provided in the Certified Standing Orders of the company, an employer intending to terminate or retrench the service of an employee is required to give one month's notice. This notice will become three months' notice in the case of companies employing 100 or more workers. In the case of the closing down of an establishment, notice pay or notice (two months) is to be given. In general, the notice period is the period given to the employees to find alternative employment.
As opposed to the above, the employer also fixes a notice period that the employee should serve to the employer if the former wants to terminate his relationship with the latter. That may also range from 30 days to three months. Generally, the notice which the employee should give to resign and leave the employer should be the same as that to be given by the employer to remove an employee.
As stated, the ID Act has provided for giving notice or paying notice pay in lieu of notice in case an employer wants to retrench employees or close down his establishment. However, there is no such responsibility on the part of the employee to give notice or pay notice pay. As such, the latter is purely governed by the contract of employment or certified standing order of the company.
Regards,
Madhu.T.K