Notice Period Confusion After Company Sale: How Should I Handle This Last-Minute Change?

Notice Period Dilemma After Company Acquisition

I joined ABC company, and after two years, the business was sold to XYZ company, transferring employees. The new employer initially set a 1-month notice period but later changed it to 3 months with immediate effect. I resigned with a 1-month notice as per the initial terms, but the company did not respond until 3 days before my relieving date, now demanding a 3-month notice. They also threaten not to issue a relieving letter and have not paid my last month's salary. My new employer was informed of the 1-month notice during the interview and cannot accommodate a delayed start. I offered to buy out the remaining days, but they refused.

What should I do in this situation? Which notice period policy should apply?

In this situation, it is crucial to understand the legal aspects of notice periods in India, specifically in Delhi. According to the Industrial Employment (Standing Orders) Act, 1946, any changes to the notice period should be communicated in writing and cannot be applied retroactively. Since the initial appointment letter stated a 1-month notice period, you are within your rights to adhere to that period. Here are steps to consider:
1. Review Employment Laws: Confirm the legal requirements regarding notice periods in Delhi, India.
2. Communicate Professionally: Clearly state your position to the current employer, citing the initial appointment terms and relevant labor laws.
3. Seek Legal Advice: Consider consulting with a labor lawyer to understand your rights and options.
4. Document Everything: Keep records of all communications, including resignation letters, emails, and relevant policies.
5. Negotiate Amicably: Try to negotiate a reasonable solution with the current employer, emphasizing compliance with the initial terms.
6. File a Complaint: If necessary, file a complaint with the labor authorities for non-compliance with labor laws.
7. Prepare for Consequences: Be prepared for potential legal actions or disputes, ensuring you have sufficient documentation to support your case.