Concerned About Notice Period Changes in Appraisal Letter – What Are My Options?

Dear Seniors,

Greetings for the day! I work in a small company registered under the Shops and Commercial Establishment Act and have been working in the HR department for the past 2.10 years. Recently, we had an appraisal discussion and received the appraisal letter with a normal hike and a clause mentioned on the notice period in the appraisal letter (This is the first time I am seeing this in an appraisal letter). I am worried about the clause mentioned in the letter, as the notice period/termination clause has been changed from 1 month (as in the Offer Letter - previously agreed) to 3 months (in the appraisal letter).

My Questions Are:

1. What is the maximum number of days an employer can ask for in the notice period?
2. Can the notice period clause change in an appraisal letter?
3. Are there any laws regarding notice periods for organizations in India?

Please help me with this concern, as I am worried about the notice period clause and have not accepted it yet. I feel this may affect my career growth. Please suggest how I should proceed in this case.

Warm Regards,

Praveen Devadiga

There are no specific specifications mentioned in the law regarding the notice period. It is simply an industrial standard protocol being practiced.

Difference Between Appraisal Letter and Notice Period Change

An appraisal letter is different from a notice on a change in the notice period. Any changes shall only take effect with the mutual consent of the employer and the existing employee. The employee reserves the right to deny any new notice period clause.

Legal Governance of Notice Period

There is no specific law governing the notice period.

Understanding Notice Periods

The concept of a notice period is when the next person (successor) gains enough knowledge to work in the same position. Usually, this period is one month, but in special cases, it can be up to 90 days, depending on the workflow. The notice period facilitates a smooth handover of work to the next person.

There are no specific rules for the notice period, and it has nothing to do with the appraisal.

Regards,
Ramakant

Thank you, Manoj and Ramakant, for your valid suggestions. Here, my concern is where the notice period in the offer letter is one month, and the revision letter is issued with a change of clause on the notice period to three months. Either it has been discussed with employees or informed to employees before issuing the letter.

From one point of view, the changes might seem okay, but if any employees accept this and later get a good opportunity, they will need to serve the three-month notice period. In such cases, the new employer may not be willing to wait for three months, which could clearly affect the employee's career growth or future opportunities.

Notice Period Validity and Appraisal Concerns

Generally, the notice period is one month on either side. As they have given a 3-month notice period in your offer letter, it holds good. Regarding the mention of a 1-month notice period in the appraisal, it is a formality for everybody. Don't bother about it. Your offer letter with a 3-month notice period will be valid.

Understanding Appraisal Letters and Notice Period Changes

These are two separate things:

1. An appraisal letter, as it says, will inform you about your increment (if any) and promotion/grade change (if any), generally speaking.
2. A change in the notice period is a policy decision by the organization that should be circulated as a Notice. Just check with your colleagues if the clause appears in other letters too. If not, then the management is indicating something to you.

Regards,
Sriram

Thank you, Sriram, for your response. Here, the clause reflects on all employees' revision letters. I am only concerned about the three-month notice period as the salary hike is favorable to me.

Handling Changes in Pay and Notice Period

The hike in pay and the revised notice period have come to you as a package. If you accept both, you accept both. If you are glad to accept the hike only and not the revised notice period, you have to inform the management. If you do inform them, the management may reconsider the hike as well!

A better approach would be to informally discuss the situation with management and gauge their reaction. You may also talk with your colleagues to find out if there is a possibility that management will agree to your request. Then you can plan your next steps accordingly.

Your concern is correct. It is just an underhanded way to keep employees under pressure or, at best, deny them notice pay. It is generally made to work one way—only in favor of employers. So, if an employee even submits a letter of resignation giving a notice of # months, the management will accept the notice and resignation and relieve him the next day—on the pretext that he has already given resignation.

You will find many such cases on CiteHR.com. Unfortunately, most HR professionals have their own agenda of growth and better compensation or lack good HR knowledge and skills, supporting such grossly unethical actions on the part of the "owners" of such small companies.

Moreover, as rightly observed by you, most companies would not like to wait for three months to fill their vacancies; so the employee has to resign early and is forced to pay the notice period salary.

Unfortunately, there is no solution to such practices except wide condemnation; even this is rare, as you will notice from several rejoinders that shall pour in to support such practices.

Warm regards.

There is no norm for the notice period; it differs from company to company. It depends on the standing order of the company and the clause of the notice period given in the appointment letter.

Regards,
Tejbhan Pandey

Notice Period Transition

The notice period is a transition period to select the successor. It normally varies from 15 days to 90 days. It can be more as well, depending on the position a person is holding.

Regards,
Pon