Navigating Notice Periods: Can I Negotiate a Shorter Exit with HR's Help?

Hi, my company's notice period, as stated in my offer letter, is as follows: "This contract of employment is terminable by either party by giving one-month notice to the other party, without assigning any reasons thereof. The company reserves the right to pay or recover up to one month's fixed salary in lieu of notice."

I am currently unwilling to serve a notice period of more than 3 weeks. Can I ask my HR to recover up to one month's salary and provide me with the relieving?

My line manager is unwilling to let go of me for less than a 30-day period. Can this be compensated with HR's discretion?

Thank you.

The notice period can either be served or paid in cash, subject to the acceptance of the management. The decision lies solely with the management. In your case, the decision of the management is final. HR cannot overrule the decision of the line manager when it is within the legal framework. It can only be requested with the line manager.

Dear Truth Seeker,

Your Query: "My company notice period from my offer letter states that: 'This contract of employment is terminable by either party by giving one-month notice to the other party, without assigning any reasons thereof. The company reserves the right to pay or recover up to one month's fixed salary in lieu of notice.' I am currently unwilling to serve a notice period of more than 3 weeks. Can I ask my HR to recover up to one month's salary and provide me with the relieving? My line manager is unwilling to let go of me for less than a 30-day period. Can this be compensated with HR's discretion?"

Position: The sole purpose of providing for a notice period is to enable the contracting signatories/parties/person (in your case, the employer and you, the employed person) "to seek and secure" alternatives to exist/continue/function/carry out the business-on-hand without the other. It is not intended for misuse, such as punishing the other party/person for tendering resignation from the employment contract, thereby violating his/her fundamental right to work and earn a livelihood/subsist otherwise anywhere he/she likes. Consequently, any move to punish or to deprive one from exercising his/her fundamental rights is unlawful, unethical, or against all or any universal human rights, and therefore, ultra vires.

Further, no contract whatsoever will stand the scrutiny of law/will be deemed legitimate by the courts of law in India if the same is one-sided/unfair/partial and inter alia "used-misused" to the disadvantage of the other.

The actual-caused loss to the company/organization can be arrived at and recovered from the "defaulting contract-partner/signatory after giving him/her proper notice to that effect.

As the "aid and advisor" of management, those in HRD are entrusted with the function of "giving" or "offering" legitimate advice-for-action to the entire management team. What is the grace in losing "the face" or the reputation/goodwill? Let good sense prevail.

Regards,
Kritarth Advisory Team

10th Sept 2014

Respected Kritarth Consulting Contributing Member,

No doubt you may be right in mentioning that "No contract whatsoever will stand the scrutiny of law or be deemed legitimate by the courts of law in India if the same is one-sided, unfair, partial, and used or misused to the disadvantage of the other." But you see the adamancy of the querist who has mentioned that "I am currently unwilling to serve a notice period of more than 3 weeks." I am of the opinion that the sky will not fall if he makes adjustments for a week. Sir, you have completely sided with the employee, but think of the employer, who has been left in a vacuum. If the employer asks his employee to stay for a month, which is a part of the contract/agreement, to finish off the pending work in hand or train somebody to understand or take charge of his desk, I don't think there is anything wrong. The employer may need time to recruit his replacement or make some alternative arrangement.

Though the employee may win in court over the action of the employer being 'one-sided, unfair, or partial,' does the employee have the time and money to establish his stand?

I agree with the opinion of our learned member Sh. Victorjays that "Notice period can either be served or paid by cash subject to the acceptance of the management." As such, you will agree that the final decision lies solely with the management.

Regards,
BS Kalsi