Returning After Maternity Leave: Should We Offer a Revised Contract to Retaining Employees?

Dear All,

Greetings. I'm working in a private company as an HR executive. My management needs to provide a revised offer letter for employees who have joined after maternity leave and have submitted their resignation but decided to continue. Is that advisable? Please guide.

Thank you.

Maternity Leave and Employment Continuity

Has the maternity leave benefit been provided to the employee? If yes, then there is no discontinuity in her present employment, so there should not be any requirement for issuing a new offer letter.

Rejoining After Resignation

If the employee has resigned from the services—irrespective of the reason, as it is entirely the employee's decision—then, according to Legal HR formalities, their full and final settlement must be completed. If the same employee wishes to rejoin the organization, they must apply with a fresh candidature, and an offer letter should be generated accordingly.

It is better to close the previous history when your ex-employee wants to rejoin by performing full and final settlement formalities and starting with a fresh candidature, accompanied by a new offer letter.

Dear All,

Thank you for providing me with suggestions on the same. I now understand when the offer letter can be given and its procedures.

Understanding Offer Letters and Employment Terms

An offer letter is a document outlining the terms and conditions of employment, given to a prospective candidate, not to an existing employee. If you need to revise the terms and conditions of employment, you must issue an office order describing the revised terms and conditions.

Service Conditions and Legal Compliance

For employees categorized as workmen under the Industrial Disputes Act, any change in service conditions must be communicated to them at least 21 days before the change, as per Section 9A of the Act. The concerned workers can object to the changes and raise an industrial dispute.

Revised Service Conditions Post-Maternity Leave

The revised service conditions upon rejoining after maternity leave should not be less favorable to the employee. Additionally, you cannot impose a service condition exclusively for those who have returned from a long leave. Similarly, you cannot alter the service conditions of an employee who has resigned but is serving the notice period in a way that adversely affects their relieving and full and final settlement.

Salary Restructuring Considerations

There is nothing wrong with restructuring the salary of the sales team as part of the revision, with more emphasis on variable pay. However, it is crucial to ensure that their fixed remuneration does not decrease due to this restructuring. Variable pay is contingent upon meeting certain conditions, such as targets. You can maintain the fixed salary and add any amount as variable pay as part of the increment offered.

Issuing a Modification Letter Instead of a New Offer Letter

A company cannot issue two offer letters to the same employee. However, the management of any company has the sole right to amend, modify, alter, or revise the offer letter. Instead of issuing another offer letter, you can issue a Modification Letter to the Offer Letter with a reference number and date (fill up the required details) to employees for whom you want to change the terms and conditions.

The signatory of such communication should be the same person who signed the offer letter (or any higher authority than the signed authority).