Is It Fair for Employers to Offer Different Notice Period Options Than Employees?

Normally, the appointment order stipulates that the employee's service can be terminated by either party (employee or employer) by giving, say, 3 months' notice or 3 months' pay in lieu of the notice period.

Query on Notice Period Options

My query is whether the employer can retain the option of terminating the employee by giving a 3-month notice period or 3 months' pay in lieu of this, while the employee's option is only giving 3 months' notice. In other words, the employee does not have the option to pay 3 months' salary in lieu of the notice period. Is this admissible under relevant laws?

If the appointment conditions clearly state a 3-month notice period or payment in lieu of notice by either party, the clause applies to both parties, and they have the option to exercise the condition by paying the notice period.

Regards,
Pon, Chennai

Thank you, Mr. Pon. My query is: Is it possible for the employer to have both options, i.e., a 3-month notice period or 3 months' pay in lieu of a notice period, when terminating the service of an employee, while the employee has only one option, i.e., a three-month notice period? This means that the employee does not have the option of receiving three months' pay in lieu of the notice period. Is this permissible under the law?

Notice Periods and Legal Provisions

Our laws do not dwell in detail on such notice periods. They simply state that no employer can terminate the services of an employee who has served more than 6 months of continuous service without at least one month's notice or payment in lieu of notice. The law does not address the option for an employee to pay in lieu of notice. Therefore, the conditions specified in the appointment letter prevail.

Regards,
Pon, Chennai

Though the particular term of the contract is more favorable to the employer than to the employee, since you have signed the contract thereby consenting to this condition and raising objection only at the time of your resignation, I am of the view that you cannot exercise the option of paying 3 months' notice pay in lieu of notice if the employer insists on a notice period. You may also seek an opinion from a lawyer. However, you should try to settle the matter amicably with the company.

Regards,
B. Saikumar