Is a Two-Month Notice Period Legal? Seeking Advice on Joining a New Job in One Month

I have one query. In our company, there is a two-month notice period rule for resigning. Is it legal? I have received an opportunity, and they are asking me to join in one month. If I give a notice period of one month, will they take legal action against me? It is also mentioned in the appointment letter about the two-month notice period, which I have signed. However, at that time, we needed the job urgently, so we signed under pressure. Can you please guide me?

Notice Period Legality

The notice period mentioned upon your appointment is very legal. Depending on the nature of the business, the notice period will vary. It can range from immediate relieving to a notice period of up to 5 months. For pilots, it is now mandatory to provide a notice period of one year before they can sign off. Therefore, the clause requiring a 2-month notice period is legal.

Early Joining in a New Organization

Moving on to your query about early joining in a new organization, you will need to negotiate with either your current or prospective employer for an early start. If you choose to abscond without proper notice, the old company can take legal action against you, and you may not receive relevant documents such as relieving letters. It is advisable to discuss your early departure with the management and reach an amicable settlement.

Regards,

Managing a Two-Month Notice Period

If the notice period is two months, and you are ready to serve one month, the question remains about the remaining month. You may request management to adjust your leave balance (if you have 30 days as PL/EL) against the one month's notice period, or you may pay for the one-month notice period (only the basic pay amount). You can also ask your new employer if they can reimburse this amount. There must be some provision to sort this out. Talk to your HR or manager, as sometimes it depends on your manager. If they agree to release you, then no one can stop you from leaving.

Dear Friend, In essence, your post raises two fundamental questions. The first question is whether the two-month notice period upon resignation, as stated in the employment contract, is legal. The second question pertains to whether the employee's consent given at the time of joining, allegedly under coercion or pressure from the employer, is valid.

Before delving into the answers, let me provide an excerpt from the judgment of the Honorable Supreme Court of India in Union of India & Another v. Tulsiram Patel & Others [AIR 1985 SC 1416]:

"Whether the contract of service is for a fixed period or not, if it contains a provision for its termination by notice, it can be so terminated. If there is no provision for giving notice and the contract is not for a fixed period, the law implies an obligation to give a reasonable notice. When no notice in the first case or no reasonable notice in the second case is given, the contract is wrongfully terminated, and such wrongful termination will give rise to a claim for damages."

Regarding the first query

It seems you have found the answer. However, one may argue whether a two-month notice period is reasonable for the employee. The inclusion of such a clause in the employment contract aims to prevent the hardships that abrupt termination could cause to both the employer and the employee. It provides the employee with a fair chance to secure another job and allows the employer to find a suitable replacement. The reasonableness of the notice period's duration varies case by case, without a fixed formula. I would like to highlight another observation from the same Court in Chairman and Managing Director, Indian Airlines v. Binodkumar Sinha & Ors [AIR 2001 SC 3988]:

"An employee, upon joining service, agrees to certain terms and conditions and cannot leave the employment without giving the required notice to the employer. The appropriate duration of notice in such circumstances must be determined based on the specific situation, needs, and the importance of the service in question."

It is evident that a two-month notice period cannot be deemed unreasonable in any scenario. Therefore, if the notice period is considered reasonable, allegations of coercion are not legally sustainable.

In situations where the notice period is deemed reasonable, the employer may seek damages for breach of contract if the employee resigns immediately without serving the notice period. If the exit notice condition is fair, the resigning employee's financial constraints should not hinder compensating the employer as previously agreed.

Please let me know if you need any further assistance.

If the Standing Orders Act is applicable to your company, the act provides for a one-month notice period. Even though many organizations mention a three-month period, it is illegal. Can you fight it out with the management?

Dear Friend,

The notice period of two months is appropriate. The notice period of one to three months is also appropriate. The organization determines the notice period based on its structure and employee strength to facilitate termination or retrenchment in a legal manner.

Furthermore, questioning the two-month notice period in a signed/agreed contract holds no significance at this stage. It would be more beneficial for your future to adhere to the norms.

Thank you.