Confused About Notice Period Terms in My MNC Job Offer—Is This Legal?

I was offered employment in an MNC company, and in the offer letter, nothing was mentioned about the notice period (till then it was 1 month's notice on either side). I accepted the offer and joined at one of its sites. My appointment letter was not issued on the date of joining and was given to me later—after 25 days from the joining date. While issuing it, I was told not to mention the date while signing.

Notice Period Details in Appointment Letter

In the appointment letter regarding the notice period, it is written as follows: "In case of resignation from services during the probationary period, you shall serve one month's notice. After the completion of your probationary period, your services can be terminated by giving 3 months' notice or salary in lieu thereof. In case of resignation from the services, you shall serve the full notice period of 3 months. Leave or salary will not be adjusted against any shortfall in the notice period."

1) Is this legally acceptable? As I had no other option but to sign the appointment letter after joining the organization, or else I would have been jobless.

2) Is it possible to work for 1 month and adjust the balance of 2 months with leave/salary?

HR experts, please give your suggestions/feedback.

The terms outlined in the appointment letter regarding the notice period are legally binding once accepted, even if issued after the start date. In this case, it is crucial to understand the implications of the notice period clauses. Here are some key points to consider:

1. Legality: The terms mentioned in the appointment letter are legally acceptable if both parties have agreed to them. However, it's advisable to seek clarification or legal advice if there are concerns about the notice period terms.

2. Adjusting Notice Period: Generally, notice periods are meant to be served to ensure a smooth transition. While adjusting the balance of the notice period with leave or salary might be possible in some organizations, it ultimately depends on the company's policies and mutual agreement between the employer and the employee.

3. Probationary Period: During the probationary period, the notice period might differ from the notice period after completing the probation. Ensure you are aware of the specific terms applicable to your employment status.

4. Seeking Clarification: If there are uncertainties or ambiguities in the appointment letter, it is recommended to seek clarification from the HR department or discuss the terms with the relevant authority to avoid any misunderstandings in the future.

5. Legal Recourse: If there are disputes or issues regarding the notice period clauses, it's advisable to consult with legal experts or relevant authorities to understand your rights and options under the labor laws in India, particularly in Mumbai.

Remember, clear communication and understanding of the terms are essential in such situations to ensure a harmonious working relationship between the employer and the employee.