Can My Company Legally Extend My Notice Period from 30 to 60 Days? What Are My Options?

Hi all,

I have been working with an MNC in Mumbai for the last 4 months. In the appointment letter issued to me, the clause regarding the resignation/termination of an employee stated that a 30-day notice period is required from either side.

Now, the company has proposed to reissue the appointment letter with similar terms of service, except for the resignation/termination clause. The company is suggesting a 60-day notice period in the case of termination/resignation of an employee.

My question is, can the company legally make this change? If so, do employees have any recourse in this situation?

Thanks,
Armaan

Dear Armaan,

The company can introduce any term that is not unreasonable. Most companies today have a three-month notice period. In that context, 60 days cannot be termed as unreasonable.

The tragedy lies in the fact that companies that stipulate a 60 or 90-day notice period for leaving do not allow new joiners the same number of days to start. This is where the controversy arises. If a company, willing to wait for 60 to 90 days for a candidate, the candidate would likely stay in their current employment for that duration. Otherwise, they would be forced to break the rule.

The question that arises is - what is the remedy?

Usually, companies offer "Salary in lieu of notice period." If that is provided, one can use it to leave early. If not, no one can prevent you from leaving the company as per your fundamental rights granted by the Constitution of India. The only consequence may be facing a legal battle.

Let me know if more details are required.

Dattatri

Company Secretary

Hi Dattatri/Yeshulaparkash,

Thank you for your suggestions. However, personally, I find it unreasonable and misleading to its employees at the first step of their employment.

Thanks,
Armaan

This amounts to "change in service conditions" and needs to be proceeded after due diligence measures have been applied, i.e., giving notice to employees highlighting such a change in norms.

Yes, the company can do that. It is the sole discretion of the company to alter the conditions of the appointment letter.

Regards,
Johnson

If the Appointment Order has a clause that it can be amended under certain conditions, then you could modify the Notice Period option. After all, an appointment letter is a "Contract for Employment."