Extending Notice Period to 2 Months: Legal Concerns and Communication Tips Needed

Dear all, inputs in the above discussion really helped me... thank you so much! I am currently facing a similar situation. The notice period is 1 month in the appointment letters issued to date irrespective of probation confirmation. However, since we are facing attrition in critical resources, we want to send out communication to the entire organization stating that the notice period would be 2 months after confirmation.

Concerns Regarding Notice Period Change

Here are my concerns:

1. By doing so, am I violating any labor law? We are an e-Commerce company!

2. Do I need to take an acknowledgment from the employees to enforce such a change, or would an email communication from the CEO suffice?

3. Regarding the final settlement, would I have to hold back 2 months' salary until the employee serves the notice?

4. Kindly help me with an email format to be sent out to all employees mentioning the settlement details as well. The management is flexible to let go of a few employees (different department) before the 2-month notice. So, I request you to share your input and also help me with a format for the same asap.

Thank you!!!

Legal Implications of Notice Period Changes

1. By doing so, am I violating any labor law? We are an e-commerce company!
- No, you will not be infringing any labor law.

Employee Acknowledgment for Policy Changes

2. Do I need to take an acknowledgment from the employees to enforce such a change, or would an email communication from the CEO suffice?
- Acknowledgment from all the affected employees is highly sought before effecting any change.

Final Settlement and Notice Period

3. And regarding the final settlement, would I have to hold back 2 months' salary until the employee serves the notice?
- If the employee is ready to serve a two-month notice period, then it is not advisable to hold salary for two months.

Email Format for Employee Communication

4. Kindly help me with an email format to be sent out to all employees mentioning the settlement details as well as the management's flexibility to let go of a few employees (different departments) before the 2 months' notice. So, I request you to share your input and also help me with a format for the same as soon as possible.
- Please prepare a draft and upload it here; we will make the necessary corrections.

Attribution: [CiteHR](https://www.citehr.com/465468-notice-period-extension-accross-organization.html#ixzz2YdE4J6Be)

How can you say that just by extending the notice period from one month to two months, it will help you in minimizing the attrition rate or attrition level in your company? If you want to reduce the attrition level, I do not think this is the right way. I do not think that you can stop people from leaving your organization just by extending the notice period.

Questions and Answers

1. By doing so, am I violating any labor law? We are an e-commerce company!

No, you are not violating any labor law. The company has the right to make amendments to any policies and procedures as and when required for the welfare of the company as well as for the welfare of the employees. Note: Provide clear details on the Notice Period Buyout clause.

2. Do I need to take an acknowledgment from the employees to enforce such a change, or would an email communication from the CEO suffice?

No need for acknowledgment from the employees. Get approval from top management and clearly communicate the changes in policy and procedure to all employees in the company.

3. Regarding the final settlement, would I have to hold back 2 months' salary until the employee serves the notice?

You cannot do Full and Final settlement without an employee serving the notice period, especially if the employee is not willing to buy out the notice period. This should be handled on a case-by-case basis.

4. Kindly help me with an email format to be sent out to all employees mentioning the settlement details as well as the management's flexibility to let go of a few employees (different departments) before the 2 months' notice. I request you to share your input and also help me with a format for the same as soon as possible.

Discuss this with your management and draft the email accordingly.

Regards,
M. Kannan

I will differ with your below answer. Any change in service conditions cannot be implemented without the consent of the affected employees (ID Act). The Contract Act also forbids one-sided contracts. As the other party is not interested in changing the terms and conditions of the contract/agreement, neither party can effect the changes unilaterally. I hope I have clarified my views.

Acknowledgment for Policy Changes

Do I need to take an acknowledgment from the employees to enforce such a change, or would an email communication from the CEO suffice?

No need for acknowledgment from the employees. Get approval from top management and communicate very clearly to all employees in the company about the changes in the policy and procedures.

Regards,
Prashant

Thank you for the inputs. I am not trying to minimize the attrition level by increasing the notice period. There are a few critical resources, and if they decide to leave the organization, we would require sufficient time for knowledge transfer. Having a one-month notice period would make it difficult to do so. Hence, the change in the notice period.

Thanks!