Stuck with a 3-Month Notice Period: Can I Negotiate or Pay to Leave Sooner?

Hi, while joining the company (after two days of the joining date), I signed an appointment letter with the employer. In that letter, it is mentioned that the employer will decide whether the employee has to serve a notice period or can pay the damage cost after resignation.

Now in my new company, I have an urgent joining, and the employer is forcing me to serve a notice period of 3 months. What can I do? Please reply.

Dear Colleague, the terms of the employment contract that you signed are clear: Management has the right to insist that you serve the notice period. Normally, you can negotiate with both employers for a deal. You can request early release from your current employer and ask for additional time to join your next employer. Strive to strike a balance that is a win-win for all parties.

It is both a moral responsibility and a legal obligation to fulfill the stipulated notice period, something that your next employer will also appreciate. If a company immediately replaces a resigning employee, it may indicate that the employee is deemed unimportant, etc.

I suggest not breaching the agreed terms of the employment contract, as doing so may lead to legal action by the employer. Approach both employers positively.

All the best.

It is not the practice for the employer to unilaterally decide whether an employee must serve a notice period. Instead, it is generally inherent in most organizations that regardless of the notice period's duration, the employee must either serve it or pay in lieu of it. If an employer terminates an employee without allowing them to serve the notice period, the employer is typically required to pay in lieu of it.

It is always preferable to reach an amicable settlement between the employee and the employer. Some organizations release employees before the completion of the notice period, and in certain cases, new employers may buy out the notice period.

In this particular situation, it would be advisable to communicate with both the employer and the employee to identify a suitable solution.

Regards, S K Bandyopadhyay (WB, Howrah) CEO-USD HR Solutions [Phone Number Removed For Privacy-Reasons] [Email Removed For Privacy Reasons] www.usdhrs.in

Employer's Decision on Notice Period

"The employer will decide whether the employee has to serve a notice period or can pay the damage cost after resignation."

The above clause in the appointment letter reflects the organization's culture of lacking transparency. If the decision is reserved for the management at the time an employee resigns, the contract is essentially one-sided and voidable. With such clauses in appointments, management will eventually find it difficult to attract good manpower resources. I am surprised to find such a clause in an employment contract.

Consequences of Not Serving a Notice Period

If an employee leaves the company without serving the notice period, what actions will the employer take against them? What consequences or risks does the employee face, including the possibility of losing their new job?