Can My Company Change the Notice Period Rules After I've Signed? Seeking Advice on Legal Options

I am working in an MNC company for the last 3 years. At the date of joining, I signed a 2-month notice period agreement. However, the offer letter also mentions that I can leave the company if I pay 2 months of basic salary. Now, our HR and manager have informed us that the rules have changed. It is now compulsory to work for 2 months after resigning. Could you please advise on how this is possible? If the organization states different terms before joining and changes them after, can the labor court provide assistance in such situations?

Thank you.

Understanding Changes in Notice Period Policy

If you have been working in a non-supervisory or non-managerial capacity, you can reject the proposal of your HR Manager if, before introducing the change in the notice period policy, which is one of your conditions of service, no notice as per Section 9A of the Industrial Disputes Act was served on you. The significance of Section 9A is that no change in the service conditions of workers shall be made without giving 21 days' notice of change.

In the case of managers, normally, the decision to change the notice period, etc., is presumed to be taken by themselves or in a meeting attended by them, and the scope of getting protection under the ID Act is very remote.

Moreover, you have to check the practices in the industry also. In service industries, nobody is concerned about the Industrial Disputes Act or similar Acts meant for workers because in such industries, all are professionals and they seldom want any protection. But when it comes to a situation wherein the job is in trouble, they would probably look for options available in the labor laws and find if they also come under the definition of workers.

Regards, Madhu.T.K

Hi Madhu,

I need one more favor from you. Can I apply in the labor court about this issue? Because as per the offer letter agreement, my notice period is 2 months, and I am ready to pay 2 months' basic salary to the organization.

Please advise.

Thank you,
T.K

Legal Steps for Workmen Under the ID Act

Sunil did not reply to my question regarding whether you fall under the definition of a workman as per the ID Act. If yes, you can proceed legally. Before filing a case in the Labour Court, please attempt conciliation by submitting your representation to the Labour Officer. If the conciliation fails, then allow the Officer to refer it to the Labour Court for adjudication. In these cases, the issue will be resolved in the chamber of the Labour Officer itself. However, before proceeding, ensure compliance with the notice requirement of change as per section 9A of the ID Act, which is applicable only to workmen.

Regards, Madhu.T.K

Madhu, nothing is written on my appointment letter regarding the 9A ID Act. Please advise on the importance of this Act.

Thank you.

Understanding the Applicability of Labour Legislation

It is not necessary or possible for the entire labour legislation to be included in the appointment order. Depending on the situation, the relevant provisions of the applicable Act will automatically apply. The Industrial Disputes Act is a piece of legislation that applies whenever there is any dispute regarding the relationship between an employee and employer. This Act protects the interests of workmen employed in an establishment and provides a number of procedures to be followed before any decision that directly or indirectly affects the interests of the workmen is taken by the employer. It also outlines procedures to be followed by the workmen before they strike against the employer. The ID Act also provides for various dispute settlement authorities and their jurisdictions.

Procedures for Changing Service Conditions

Among these procedures, Section 9A deals with the steps an employer must follow before making any changes to the service conditions of the workmen. Accordingly, if you want to change any of the conditions of service, you must serve 21 days' prior notice to the workers, with a copy to the Labour Officer. A change in the notice period is a condition of service that requires 21 days' notice.

Applicability of the ID Act to Supervisory Roles

Now, returning to the topic, I repeat, nothing in the ID Act will apply to persons with supervisory or managerial rights. A person with the authority to sanction leave for subordinates, appraise their performance, or initiate disciplinary action against them is considered a supervisor or manager as per the ID Act. Therefore, before deciding whether to file a case against the employer before the Labour Court, you must ensure that you fall under the definition of a workman. Obviously, if you have any reportees, you will be out of the purview of the ID Act, and you will not receive its protection. As such, to change your notice period, which is one of the conditions of employment, no statutory notice is required, but a communication to this effect is sufficient.

Regards,
Madhu.T.K