Employment Changes After a Decade: How Do You Handle Notice Period and Role Adjustments?

After 8 to 10 years of service by an employee, if we want to change some employment conditions such as the notice period, designation, or working hours, which letter should be issued in such cases.

If you want to change everybody's notice period and working hours, then only this can be done. The notice period cannot be different for the same category of employees/workmen.

Yes, you can do it, but before that, discuss with employees affected. After issuing the letter, mention that earlier terms and conditions are revised. Obtain individual signatures for acceptance of the revised terms and conditions.

Regards

Change in Service Conditions

Strictly speaking, it is a change in service conditions. Form 9A should be displayed, and upon the expiry of the due date, you can implement it if you don't receive any objections from the employees.

Handling Objections and Implementation

On the other side of the coin, if you are confident that there won't be any objections from the employees and you can complete the process smoothly, here is a smart way to handle it:

A Smart Approach for HR Professionals

As an HR professional, handle it differently, i.e., use a sugar-coated tablet formula. If your annual increment is effective from April, wait until that time.

Introducing Changes

Consider the possibility of introducing some interesting designations. Include all related changes, prepare the letter with the changed service conditions, designation, and new CTC. Complete the handing over of the letters by obtaining acknowledgments through their department heads, file the acknowledged copies in their personal files, and implement.

Service Conditions and Employee Cadre

I presume that the changes in service conditions intended by the poster are only in respect of those employees above the cadre of workman. As rightly observed by Kamesh, the changes in certain service conditions enumerated in Schedule IV of the ID Act, 1947 require prior notice of 21 days stipulated under section 9-A of the Act, except where such changes are effected in pursuance of any settlement or award. This implies that the right of the employer to alter the conditions of employment of his employees who are workmen is not taken away but restricted to the extent of issuance of a prior notice and only implementing such changes after the expiry of the notice period of 21 days stipulated.

Conversely, the employer can alter the service conditions of other employees as and when he desires to do so. However, such an alteration amounts to a change in the contract of employment. A unilateral change without prior notice would be against the principles of the contract. Therefore, in such a case, a prior notice shall be issued by the employer to all the employees likely to be affected by such changes. It is always better to have separate Service Regulations for employees above the cadre of workman and to effect such changes by means of suitable amendments. A general clause to that effect may be included in the appointment orders.

Ethical considerations in changing employment conditions

The seniors provided you with the legal perspective of the issue. I want to discuss the ethical side of the matter.

The changes you want to bring in do not confine to one item but more than that, probably altering the daily routine of the employees. They may come to be known by different designations, work at different timings, and probably be required to give longer notice periods when leaving. These changes are substantial, affecting a large section of your employees.

During the eight years that have passed, the employees decided to join your company since the terms of employment offered by you at that time were acceptable to them. After eight years, in the middle of their careers, you introduce a different set of service conditions. If these conditions are unfavorable and not acceptable, they might compel the employees to leave the organization. However, you may want to prevent that by stipulating a longer notice period. If the changes are not favorable to them, the employees may view this as a sinister trick by the management. Two possible consequences might follow: 1) the employees, if they are in the workmen cadre, might raise an industrial dispute 2) if not, they may try to leave the organization.

Ethically speaking, it is advisable to maintain the status quo with regard to old employees but implement the new set of service conditions for new appointees.

Regards, B. Saikumar HR & Labour Relations Adviser Navimumabi

Changes in Employment Conditions for Workman Category

If the changes contemplated are for the 'workman' category, then you are governed by the provisions of the ID Act relating to notice of change. If you have an active union, there is a possibility of resistance and an imminent industrial dispute. It is perhaps a long-drawn-out process involving deft handling of the unfolding events of conflicts and their resolution.

Changes in Employment Conditions for Non-Workman Category

If the change is for the non-workman category and it is not going to adversely affect, then it may be pushed through without much hassle.

Regards,
Vinayak Nagarkar
HR Consultant