Is It Legal for Employers to Require Longer Notice Periods from Employees Than They Offer?

Dear Members,

Greetings!

In terms of an employment contract, is it possible for the organization to require one month's notice from the employee while the employee needs to serve a notice period of two to three months in return?

Please confirm if this arrangement is legally feasible.

Regards,

Hi SASHMITA,

You are calling it an employment contract; terms and conditions that are acceptable to both parties make a valid contract. When the employer can ask for one month's notice, how does this differ for the employee?

Dear Shasmita,

Any contract is assumed valid when it is two-sided. In my opinion, one-sided contracts/agreements can be challenged by anyone.

Thank you so much for your responses. I agree that both parties have to have similar arrangements. I want to have clarity in terms; is there a possibility of having different notice periods as per the organization's internal policy. Has anyone come across such arrangements at a senior level?

Looking forward to having further clarification on the same.

Having different notice periods does not per se render it illegal, though it could be unethical or unconscionable. For an agreement to be legally valid, it has to have consideration that is legal. So long as the object of the agreement is legally valid, the terms thereof depend on the bargaining power of the respective parties. This type of employment clause is prevalent, as a newly joining employee does not have much bargaining power.

SASHMITA,

A contract means that both parties have agreed to the terms and conditions as stated in the contract. Therefore, all terms and conditions have been mutually agreed upon.

Regards,
Y.R. Shirke

Dear Sashmita,

Understanding Unconscionability in Contract Law

"Unconscionability," the term correctly used in the context by our friend KK!HR, is a doctrine in contract law that refers to the inherent or explicit quality of the terms of the contract favoring the party with relatively superior bargaining power. Therefore, the internal policy of any organization or hierarchy of the position for which the contract of employment is made has no relevance in this connection. What is unethical is always unethical. The employer who stands on the relatively higher pedestal can well be within his rights to reject the buy-out option of the employee in the event of unilateral termination at his behest and insist on serving the entire notice period on exigencies of work.