Indian Labour Law and Notice Periods: Is Three Months Always Required for Termination?

Does Indian Labour Law specify notice period requirements?

Does Indian Labour Law specify that three months' notice must be given for dismissal/termination, or that three months' full salary must be paid? In what conditions should three months' notice be given? Can one month's notice/salary be sufficient?

Notice Periods in Case of Termination

Notice periods in case of termination of service are governed by the Industrial Employment Standing Orders Act, which stipulates one month of service on either side. Hence, it is sufficient to pay one month's notice pay in case of termination of service.

Any private appointment orders issued by a company that stipulate a three-month notice period do not stand before the court if challenged.

The subject of the notice period is primarily governed by the appointment letter issued to the employee and the Industrial Employment Standing Orders Act/Rules if they fall into the category of 'workman' as defined in the Act. This aspect needs to be ascertained.

If the appointment letter stipulates a three-month notice period before the application of the Standing Orders Act/Rules, in that case, the appointment letter will take precedence. In this scenario, there is nothing wrong with the stipulation of a three-month notice period.

Regards, Vinayak Nagarkar HR and Employee Relations Consultant

Notice Period for Workmen

The notice period for a workman can range from 30 to 90 days, depending on the case. The concept of a three-month notice falls under Section 25-N, applicable when the average strength of persons working during the preceding 12 months is not less than 100.

Three-Month Notice Clause

The clause stipulating a three-month notice may be under the Contract Acts, applicable where employment involves fewer than one hundred individuals, excluding the workman category. The current acts and laws do not provide clear direction for all categories of employees and are considered discriminatory.