Notice Period Confusion: What Does the Indian Labor Act Really Say About It?

Hi All, I ran through the various threads on Notice Period but nowhere did I see any mention of what the Labor Act states regarding the Notice period. Can someone help in answering the questions below?

- What does the Indian Labor Act mention regarding the Notice period?

- Can a company withhold an employee's salary when the employee is serving his/her notice?

- Can a company withhold providing an employee with required certificates (relieving, conduct certificate, etc.) if they have not served the company notice period?

- Can leave be taken during the notice period, and will that add on to the notice?

Regards, Mithran

Please find answers to your queries:

What does the Indian Labor Act mention regarding the notice period?
The Labor Act is bound by the period mentioned in the appointment letter.

Can a company withhold an employee's salary when the employee is serving their notice?
Yes, it can be released with full and final settlement.

Can a company withhold providing an employee with required certificates (relieving, conduct certificate, etc.) if they have not served the company notice period?
Yes.

Can leave be taken during the notice period, and will that add on to the notice?
It's the company's discretion.

Regards.

Notice Period and Company Policies

There is no particular law on the notice period for employees. It entirely depends on company policy. Policies vary from company to company and may be mentioned in the appointment order or in any service agreement.

Leaves and Documentation During Notice Period

Regarding leaves during the notice period, certificates, and relieving letters—everything depends on company policy.

Please let me know if you need further assistance or have any other questions.

Regards

Dear Mr. Mithran,

Your query pertains to the FAQ regarding the employer-employee relationship. The answers provided by Mr. Murali Kandukari are factually accurate. I will attempt to provide further explanation to address your quest for knowledge.

Notice Period in India

1. The notice period is not defined in any labor enactments in India. It is an established industry practice for the conditions of the notice period to be outlined in the terms and conditions specified in the appointment letter. Typically, a one-month notice period or salary in lieu thereof is prescribed for temporary employees, while a three-month notice period or salary in lieu thereof is specified for confirmed/permanent employees. Therefore, reference should be made to the terms and conditions stated in the appointment letter.

Withholding Salary

2. It is generally accepted that the last month's salary of a resigned employee is withheld pending clearance or a no-dues certificate from the relevant departments of the company where the employee works. The final month's salary is disbursed upon the full and final settlement of accounts.

Withholding Certificates

3. An employer has the right to withhold necessary certificates, such as relieving or service certificates, if an employee departs without providing appropriate notice or formal relief. If an employee requires these certificates, they must personally approach the HR authorities and request them.

Leave During Notice Period

4. Concerning provisions related to leave during the notice period, reference should again be made to the terms and conditions outlined in the appointment letter. Generally, taking leave during the notice period is not permitted. However, if an employee takes leave, the notice period may be extended by the same number of days.

It is important to note that the appointment letter is acknowledged by the employee upon appointment, rendering the terms and conditions mutually binding. If an employee believes that any term or condition is unreasonable, they have the option to seek legal recourse by approaching a court of competent jurisdiction. However, resorting to legal action is typically not advisable unless there are valid and compelling grounds for doing so.

Best regards,

Srivastava C.M. Lal

Employment is a "contract" between an employer and employee. Therefore, the terms and conditions governed under this employment contract are the principles by which employment matters have to be dealt with. 'Notice period' is one such term, so what is stated in the terms and conditions of the contract (the service conditions) with respect to the notice period on 'either side' for resignation or for termination will apply. Thus, the employment contract lays down guidelines as to how a 'notice' has to be issued by either party. There are various periods expressed and in vogue, and generally, it's one month and varies to 3 or more months.

Most of the HR policies of employers define a 'notice period,' and employees covered under these policies are bound to follow them. Similarly, there are Standing Orders approved by the Competent Authorities who are legally vested with such powers, which also contain provisions relating to HR matters including the notice period. However, there are no acts/rules that prescribe how much the notice period should be. You may also read the following link:

http://Notice Period - Law in India ...rs.. CiteLegal

Regards.