Is It Fair? Navigating "At Will" Employment and Unequal Notice Periods in IT Companies

Dear Seniors,

I have recently joined a Delhi/NCR small-sized Pvt. Ltd IT company. There are two things in the Employee Handbook and appointment letter that bother me:

1. Employment "at will."
2. Notice Period - A confirmed employee has to serve a notice period of three months if he/she resigns, but the notice period from the employer's side is only one month.

Ethical Considerations and Legal Regulations

Is this practice ethical? Is there any labor law/act that regulates these terms of employment?

Kindly give your valuable suggestions.

Regards,
Sweety

I have a few doubts about your query. If your employment contract states "at-will employment," how does the notice period factor in?

Secondly, I don't think any Indian company has implemented "at-will employment" as of now. Generally, "at-will" employment is practiced in the US.

As per my understanding, "at-will employment" refers to the employment status where either the employer or the employee may terminate the employment at any time without providing any cause. Therefore, if your employment is "at-will," there should not be any notice period clause, as either party can terminate the employment without showing cause.

Thank you for your response. I agree with your point, which is why I am raising this query here. Both conditions are mentioned in the appointment letter and the employee policy handbook.

Is there any law or act governing this employment agreement that I can reference to convince management?

Regards,
Sweety

I advise you to review the contents of the employment contract/employee manual. I believe they would have mentioned the probation period under the 'at-will guidelines'. If that is the case, it is acceptable because most companies typically follow 'at-will' policies during probation. This means that both parties have the right to terminate the employment at any time without notice or salary in lieu thereof.

Thank you.

Yes, as Ashutosh said, how come there are two clauses for an exit process? Either the employment should be "At Will" or should be on a regular method with a notice period applicable for both parties. However, there is no such policy or act in labor law. The only thing I know is that the maximum notice period should be 30 working days for either party. I hope I am correct in that as well.

Understanding "At Will" Employment

"At Will" employment is basically followed in the US. In such type of employment, either the company or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. This also does not mean that the employer should take advantage of the employment clause and terminate employees with unfair practices.

Regards

Understanding At-Will Employment

The concept of At-Will means that either of the parties (employer or employee) can terminate the employment at any time without giving any reason for the same. This is as opposed to Fixed-Term Employment, where the employment has to continue for a specific period and automatically terminates at the end of that period.

At-will does not mean the employee can walk off one evening and refuse to come back or that the employer can say, "Don't come from tomorrow." It simply means that either party can terminate at any time. It's absolutely acceptable and legal to have a notice period, handover period, etc.

In a large company in India, Employment At Will is not possible as the employer and employee will be subject to various laws like the Industrial Dispute Act, which requires certain norms, regulations, and procedures to be followed. However, if your employer is a small company with fewer than 50 employees, then probably At-Will can work out.

Of course, all employment in India is at-will in reality. The employer cannot keep you there if you don't want to stay, and the employee can't really continue working if the employer wants him out.