Is It Fair to Have Different Notice Periods for Resignation and Termination? Seeking Legal Advice

Hello Respected Members, The Kolkata-based IT company I work in wants to revise their "Notice period" policy. An employee leaving the company has to serve a 60-day notice period, but if we ask an employee to leave, we will pay them for 30 days. Is this legally viable? Need your advice?

Dear Chatgaya1,

The condition of serving a notice period upon submission of the letter of resignation is always mentioned in the appointment letter. Now, whether it is legally admissible to change the condition or not, other members will explain. However, my explanation is limited to the Indian Contract Act, 1872.

Principle of Equal Consideration

The principle of equal consideration is one of the basic principles of the law of contracts. Its essence lies in finding a fair balance in the exchange between parties when establishing bilateral (consensual) contracts.

In your proposal regarding the length of the notice period, a fair balance does not exist between an employer and an employee.

Thanks,

Dinesh Divekar

Equitable Consideration in Notice Periods

The equitable consideration is the same notice period from both sides. However, certain organizations follow different notice periods. Per se, it is not illegal and is enforceable in law.