Confused About Notice Period Rules? Seeking Advice on Shortening My Notice Time

Dear All, My appointment letter dated Dec-2012 mentions that I shall be bound by the code of conduct and online staff guide of the company. My confirmation letter of June 2013 states that my services are terminable from either side by giving 3 months' notice or 3 months' salary in lieu of notice (it does not mention the discretion of management). Now, the online guide mentions a clause on cessation of duties, which states that the decision on the notice period is at the discretion of management. Kindly suggest the remedies available to me to give a short notice. Please help.

Regards, Dipesh

To add, I am ready to serve one month's notice and compensate for the short notice, but my company is insisting on three months' notice only.

Dear Dipesh,

Purpose of the Notice Clause in Employment Contracts

The purpose of including a notice clause prior to unilateral termination of employment by either party in the contract is to cover the delay in finding a suitable substitute by the employer without detriment to fulfilling the normal responsibilities of the job. It also enables the employee to be compensated for the loss of earnings or to have some time to find an alternative job.

However, the buy-out option of the notice period, if any, is only a concession to the employee concerned. Therefore, a concession cannot be claimed by an employee suddenly leaving the employment on their own as a matter of right, just because it has been mentioned in the contract. On the grounds of work exigencies, the employer has the implied discretion to accept or reject such an offer. Hence, the absence of such a discretion clause or its later addition cannot take away the managerial prerogative of the employer.

It is for the employee to plan their hassle-free exit prudently to serve the specified notice period in its entirety.

Dear Umakanthan Sir,

Thank you for your reply. I am ready to serve one month's notice, which is a fair amount of time to find a replacement. Additionally, the compensation for short notice can be utilized as a joining bonus for the new employee to encourage them to join early. Furthermore, since there is a signed letter (Confirmation letter) that does not mention the discretion of management, is it correct to mandate a 3-month notice period?

Thank you.

Dear Dipesh, what I've mentioned is only the legal position. If your employer is willing, they can show you concession even to the extent of waiving the notice period in part or full. As an educated person, you know well that most of our employers have a Victorian mindset, treating employment as a lifetime engagement with them. They are reluctant to part with the services of any of their effective employees, and as such, they would try to stall the exit or make it complicated to discourage other employees. That's why I insist on a well-planned exit. Try to appeal to your CEO and convince them of your alternative proposal that can equally serve the interest of the organization as well.

Best of luck!