Worried About Exit Clauses in My Appointment Letter: Can I Shorten My Notice Period?

Concerns Regarding Exit Clauses in Appointment Letter

I am an employee and have some concerns regarding the exit clauses mentioned in my appointment letter, listed below. My queries are also stated below. I would really appreciate your help and guidance as I am on the verge of submitting my resignation and will encounter these issues very soon.

Policy Clause: Notice Period

It is mentioned that either party can terminate the appointment by giving a notice of 3 months or pay in lieu.

Q: Can the company still enforce their decision to require the full 3 months' notice period? Or can I choose to pay in full or partially in lieu to reduce the notice period?

Policy Clause: Leave During Notice Period

Leaves cannot be taken during the notice period.

Q: Can I use my earned leaves to shorten the notice period? Is this also subject to the company's discretion?

Policy Clause: Salary Withholding

Salary will be withheld for 3 months and released after the Full and Final Settlement (FNF), which takes 30 days (totaling 4 months).

Q: Is it legal and compliant with the laws to withhold the salary for the entire 3 months' notice period in my case? Additionally, with the 30-45 days processing time for FNF, the settlement payout is delayed to almost 4-4.5 months.

I have agreed to these conditions in my appointment letter, and I am close to resigning and accepting a new offer. It would be beneficial for me to reduce the notice period to accommodate the new offer.

Any guidance or assistance on the above points would be greatly appreciated.

Thank you,

Regards, Rohan S
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Dear Rohan,

Generally, in contracts of employment, employers become the dominant party by subscribing to certain terms and conditions of the contract, mostly aligning with the policies of their organization rather than complying with or conforming to legal conditions or conventional principles of equity. Employees also unconditionally accept them in a "take it or leave it" situation. Notice clauses on unilateral termination and the payment clause of final dues on termination of the contract are invariably examples of such practices.

Coming to your queries:

1) In the larger interest of the industrial establishment and the uninterrupted continuance of its administration, the employer can insist on the actual service of the exiting employee during the entire notice period despite the buy-out clause of the notice period. The buy-out, whether in full or part, is always subject to the discretion of the employer.

2) It depends. The notice period does not add up to the privileges of the outgoing employee or simply entitle him to idle away on personal preoccupations. Leave cannot be claimed as a matter of right by an employee, particularly on the eve of his departure, simply to exhaust unavailed leave. Therefore, the sanction of any leave during the notice period is determined by the discretion of the employer and the purpose of the leave applied for.

3) Certainly, it is illegal as it flouts the legal norms of payment of various dues on termination of employment for whatever reason.

I would like to highlight that peaceful and smooth separation depends on your interpersonal relationship with your superiors and the attitude and magnanimity of the organization as a whole.

Thank you for your response. I really appreciate your directions and help here.

Regarding the last point, I have observed that salaries are held for only one month in most organizations, even if the notice period is three months in total. In cases where the salary is withheld for such a prolonged duration, I find it illogical and potentially not in compliance with the law. For a single earner, it can be quite challenging to manage under such circumstances.

Could you please provide further guidance on what can be done in this situation?

Thanks,

Rohan S

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