Is It Fair for Employers to Skip Paying for Unserved Notice Periods During Probation?

I resigned from a Kolkata-based company, XXX, which is owned by a well-reputed digital marketing and analytics agency in Singapore, YYY, one month after I joined (for various reasons).

At the time of my resignation, they asked me to serve a 45-day notice period, to which I agreed. A week later, I was suddenly told to discontinue, and the company no longer wanted me to serve the rest of my notice period. They agreed to pay the salary for the days I worked but not for the unserved notice period, on the pretext that I was a new employee (on probation). However, there was no communication indicating that the notice period during probation was "just a moment's notice."

I understand it's at the company's discretion to let or not let an employee serve the notice period, but are they also in full right to not pay for the unserved notice period? It sounds unfair or one-sided to me (an employee can't leave without fulfilling the notice period obligation, but the employer can, at its will, enforce the employee to not serve any notice period without any pay in lieu of notice?!).

Any clarification would be highly appreciated on how things work (or should work) in such situations.

Thanks in advance, and please let me know if you need more information on the case.

Employer-Employee Relationship and Notice Period

An employer-employee relationship can end either by serving a notice period or by paying the equivalent amount, especially during the probation period. If the company has agreed to allow you to serve the notice period, they cannot terminate your service in the middle of such a period.

However, for better advice, it is important to review your letter of appointment, resignation letter, acceptance of resignation, notice of serving a 45-day notice period, final letter of discontinuation, and any other relevant documents.

Thank you for the clarification.

What does "probation period" technically mean actually? Does it automatically mean (even if not agreed beforehand) there's no minimum 'x' days notice period (meaning employer fully justified terminating the contract same day even if the usual notice period agreed is 45 days)?

Understanding the Probationary Period

The probationary period is a time frame during which an employee is evaluated, typically lasting from 3 to 6 months. After completing this period, the employer must decide to either a) retain the employee or b) terminate their employment. If you are serving a probationary period, it should be clearly stated in your appointment letter.

During the probationary period, both the employer and employee can terminate the relationship by providing a notice period or compensation in lieu of notice. However, once an employee becomes permanent, terminating their service requires adherence to legal procedures.

Since you have joined the company, I inquired about the probationary period, if any.

Regards,
[Username]

The company has the right to waive the notice period upon your resignation and let you go, even if you have not requested the waiver. They don't need to pay you for the remaining notice period which was not served. They are right.

I echo Ritesh; since you were yet to be confirmed, there is no notice period that you need to serve. Hence, the employer does not need to pay you for it. I wonder how they asked you to serve the notice period in the first place. It looks like there was either a miscommunication initially or an absence of clarity in HR policies.

Since you were the one who initiated the separation, I assume you already have a job in hand. Therefore, I request you to focus on that new role for now and make a clean exit from this employer.

Wish you all the best!

Hmmm... now I hear conflicting messages. One from a professional lawyer (which says they need to pay out the rest of the notice period) and the other from 'anonymous' [wish there was a name to bring more credibility to the response!], which says they don't need to. Can anyone clarify please what's correct?

@(Cite Contribution), you mean you don't agree with Ritesh and actually echo 'Anonymous'?

Thanks in advance!

Understanding Notice Period Obligations

The topic is a complex one that rarely has a single straightforward answer. Different individuals will give different answers, and the courts have also provided differing answers depending on how the lawyers presented the matter.

If you look strictly at the law of contracts, you are required to serve a minimum notice period when you resign, and the company is required to pay you for the notice period if they terminate you. When you send a notice of resignation, it is a notice of termination of employment. The other party then has the right to accept with the notice period or decide to accept with immediate effect. Since you resigned, it is not necessary to pay the balance of notice pay they have waived.

But again, there is no stated clear law on this, and the above is also derived from various clauses of the contract act and not a direct reference to a section. Therefore, a lot depends on factors Ritesh mentioned.

In the end, what's the solution? The company realized that your staying the full term is meaningless to them. It may have reflected in your quality of work or attitude post-resignation, for example. They are not interested in paying someone who resigned after a month. Complaining to labor officials is meaningless in an unclear situation, and trying a legal route would cost far more than the balance notice pay. So, it is suggested to forget it and move on.

Regards

Hey guys, thanks for all your suggestions. It was very helpful to understand things better.

Negotiating Through Mutual Discussions

Staying full term is meaningless - yes, correct! Trying a legal route - yes, it will cost money, energy, etc., and is not always the best way for long-term relations. It's better to negotiate through mutual discussions first and reach a consensus.

Justice and Fair Play

Forget it and move on - sorry, but I also strongly believe in justice and fair play. If we keep ignoring "unfair practices" just because the legal route is complex, painful, and slow, people will keep exploiting such loopholes. We shouldn't let these people go away so easily. Next time anyone tries to play unfairly, they should be forced to think twice! What do you say?

I'll speak with them to try to resolve it in a friendly manner. Let's see if they don't agree. As per my calculations, they'll owe over Rs. 1L (not a small amount!)

Thanks for taking your time and attention to my query!

Hi All,

Thank you very much for your valuable inputs! It seems I'll really need some legal help here. Can anyone recommend me a good lawyer to deal with employment matters from the employee side (preferably in Kolkata)?

Thanks,