Is My Company Right to Demand Extra Notice Pay? Seeking Advice on Legal Options

Hi All, I was employed at an MNC IT company. At the time of joining the company, I signed an Employment Agreement in which the notice period was mentioned as 60 days. During my tenure at the company, the HR manager changed the notice period to 90 days. She intimated the whole company through the email below on 8th September:

"Dear All,

Please note that your notice period has been changed from 60 days to 90 days effective September 9, 20XX. This decision is based on internal deliberation and also considering the current exit practices in similar industries. All those who are currently on the notice period will serve their notice period for 60 days as per our earlier notice period policy. Any resignations post September 8, 20XX, will have a notice period of 90 days."

I resigned from the company and with mutual agreement took a premature exit after serving one month's notice. The company has now approached me with F&F and is demanding payment for 2 months that I didn't serve. My submission is, F&F should be calculated based on the original employment agreement as that is the one which we agreed upon and signed. For the extension of the notice period, there was no amendment or new agreement signed between me and the company, and hence this one-sided change from the company doesn't hold legal in the eyes of the law.

Can somebody help me validate my submission and suggest whether or not I should take the company to court?

Thank you.

Does the HR Manager's Response Hold True?

Further, when I brought up this point to the HR manager through an email, I received the following response. Does it hold true?

"I have gone through the overall email trail and your pointers with respect to the notice period. Based on legal requirements to provide any notice of change to the conditions of employment, an email notification was sent to all, including you, about the change of notice period, mentioning the effective date and applicability. By the requirements of law, this is considered as enough notification as these terms are non-negotiable and based on the changing business scenario. It was therefore not necessary to send you an amendment to your LOA which needed your acknowledgment and agreement. The email itself by law is treated as communication for 'Notice of Change' and is a regular practice followed by many industries. Not sure how your legal counsel is advising you otherwise.

We will need to process your F&F settlement this month with or without your agreement. Let us know."

Hi,

Any amendment in a contract is not valid until both parties agree in writing. Just because your company sent you an email does not mean it is applicable to you until you acknowledge it.

If your company does not respond to your issue, you can approach the labor office to get it sorted.

Dear Anamika,

When extending the notice period from 60 days to 90 days, you have not replied to the said email either giving your assent or dissent. Your silence will be construed as acceptance of the 90-day notice period. Furthermore, it is clearly mentioned in the email that "Any resignations post September 8, 20XX will have a notice period of 90 days."

Consequently, you now have to pay for the 2 months' shortfall in the notice period. Your argument may not be legally tenable.

Employment Contract and Legal Implications

Employment is deemed a contract between the employer and the employed person, and the contracting parties execute the agreement (commonly referred to as an appointment letter) stating the terms of employment duly accepted and acknowledged in writing.

As such, any signatory cannot lawfully insert any change whatsoever without the express written consent of the other party. Such insertion is outright illegitimate, and withholding of full and final settlement or any proportionate unilateral deduction shall amount to an ultra vires/unlawful act punishable under the law. Submit your written representation to management/appointing authority challenging their lopsided/unilateral illegitimate action and seek damages.

Injustice anywhere is injustice everywhere.

Team Kritarth

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16/6/17

Thank you, members, for sharing your views. As we have conflicting opinions here, can a few more senior members share their advice to help me decide on what approach to take.