Is It Fair for My Company to Extend My Notice Period Without Prior Notice? How Should I Respond?

It has been 2.5 years with my current organization. I joined the organization as "Deputy Manager," and according to my appointment letter, the notice period is 1 month. However, after some time, I was promoted to "Manager" with an official letter from the company, without any clarity on the notice period.

When I submitted my resignation letter, the HR department wanted me to serve a notice period of 2 months. Upon asking for the reason, they said, "Kindly refer to paragraph 6 of your offer letter, which states that you are to abide by all the rules and regulations of the company in force and as framed from time to time. It is also to be noted that your appointment was as Deputy Manager; however, you were promoted to Manager via this office letter dated 7th June, 2013. As per company policy, Managers are required to serve a two-month notice period. Your resignation is accepted, but if you fail to complete your notice period, necessary actions will be taken as per company norms."

Please suggest.

If the company policy states that all managers have to serve a 2-month notice, then you will have to abide by it. I hope you have access to the exit/resignation policies. If not, ask your HR to share the same with you. Please bear in mind that when you get promoted, your salary and authority increase, and the same applies to other factors like the notice period. It's common logic that people in senior positions are more valuable to the company; hence, their notice period is longer.

If the company contends that the one-month notice period in the letter of appointment is applicable to the post of Deputy Manager, then by the same breadth, the clause in the said letter of appointment stipulating that you will abide by the rules of the company as modified from time to time will also apply only to modifications done to the rules pertaining to the post of Deputy Manager during your tenure as Deputy Manager. When the service conditions relating to the post of Manager are different from those of the Deputy Manager, they need to put you on notice of them on your promotion as per the principles of natural justice as well as the principles of contract so that you would have exercised the option to accept the promotion or not. Though such contentions can be made, it is always prudent to settle the issue amicably as it is not expedient to indulge in litigation on such matters.

Regards, B. Saikumar HR & Labour Law Advisor