How Do Other Companies Handle Employees Skipping Notice Periods Due to Stress?

Hi, Our company has a policy of a 1 to 3-month notice period based on the employee's tenure in the organization. Employees in the 1st year of employment have a 1-month notice period, while employees with more than 1 year of service have a 3-month notice period. Both of these terms are outlined in the appointment letter. However, recently, a few employees have been resigning immediately after receiving their salary, often without sufficient leave balance in their accounts.

Due to work pressure and stress, they opt to leave the company, with or without securing another job. Management is adamant about enforcing the notice period.

I have advised management against pursuing the legal route, suggesting instead a focus on corrective measures to retain talent. However, management is concerned that granting a waiver to one individual may undermine the practice of the notice period.

I believe similar situations may exist in other organizations and am interested in learning about industry practices. Our organization is service-oriented, with most employees in executive roles.

Thank you.

Regards, Arun

Uniform Application of Notice Period Policy

The insistence of management on serving out the notice period must be uniformly applied. Making exceptions here and there would be counterproductive. Any exception could be quoted out of context, and you would be hard-pressed to defend them. Apply the rule uniformly, but in deserving cases, you can show some other consideration, such as in leave encashment or payment of proportionate bonus/incentive, etc.

Dear Arun,

I think you have just indicated the primary reason for the sorry state of affairs, though not elaborating on it for obvious reasons. Recruitment of the right employee for the right job is always a tricky affair. Unless proper attention is paid to the prospective appointee's capabilities to withstand job stress and the work culture of the organization in terms of their academic qualifications, initiative, experience, etc., you cannot expect them to treat their employment with the organization as a long-term affair. No organization should allow itself to be a haven for job-hoppers.

Therefore, in my opinion, the most dispassionate and immediate remedial measure would be to look into the actual reasons for employee turnover, such as inadequate staffing, excessive supervision, lack of promotional avenues for smart employees, a relatively lesser compensation package, rigid rules of discipline, and other factors that cause employees to become disengaged. I would like to state that in the case of a higher rate of employee turnover, it is better to find ways to retain them rather than strictly enforce the notice clause of exit.

While I strongly agree with the viewpoint expressed by our esteemed member, Mr. KK!HR, I suggest that the separation clause should be clearly incorporated in the Offer of Appointment. Instead of a 1-month notice period for the first year and a 3-month notice period for more than 1 year of service, you can implement a 1-month notice period during the probationary period and a 3-month notice period upon confirmation of services.

Additionally, although not always ethical or legal, you may consider collecting one original document from new joiners. This practice could help prevent unethical separations, particularly those occurring after the individual has received their salary.

I too agree that the notice period must be enforced for everyone. However, it is not easy because even if you take legal action, it is a civil case where your costs on lawyer fees will probably be more than the amount you seek to collect. The courts will not order the employee to work for 3 months, but at best will order payment of the notice period salary.

Challenges in Enforcing Notice Periods

One action is to give a negative BVG response, which is meaningless if the employee is joining a place where BVG is not done or if he has informed HR that he left without completing the notice period. Furthermore, if people know you give negative feedback, they may decide not to work with you anyway (and the information spreads quickly on the internet).

Practical Limitations

What is then left for you to force the matter? Practically nothing. You need to explain this to the employer.

Employer's Recruitment Practices

And if your employer is recruiting and during recruitment insists on immediate joining, asking for a notice period is laughable. The employee knows what your attitude towards it is.

Realistic Notice Periods for Employee Retention

Let's be realistic! A 3-month notice period is too long for an entry-level role, which is why employees may choose to abscond rather than serve such a lengthy notice. In today's fast-moving world, everyone has their own commitments, both personal and financial, and hindering them from achieving these is not something that any employee-centric company should do.

Suggestions for Adjusting Notice Periods

You can adjust the notice duration to create a win-win situation for both the employee and the employer. Here are some suggestions:

- For individual contributors like Associates, Analysts, and Executives, consider a 30-day notice period.
- For management roles such as Team Leaders, Assistant Managers, and Managers, a 60-day notice period may be appropriate.
- For senior management roles like Senior Managers and above, a 90-day notice period could be more suitable.

I hope these recommendations will be helpful!

Understanding Notice Periods

The notice period is the minimum amount of time that must pass before an employee's contract can be terminated. It varies from company to company and from state to state, but it is generally at least 30 days unless a contract has been signed that stipulates otherwise.

Repercussions for Non-Compliance with the Notice Period

The repercussions for non-compliance with the notice period are serious. They include:

- Termination of the contract being considered "unfair"
- Damages paid to the employee
- The employer is required to pay wages for the remainder of the notice period

It is important to keep notice periods in mind when terminating an employee's contract, as they are legally binding, and failure to comply with them could result in significant legal penalties.

Consequences of Not Complying with the Notice Period

The repercussions of not complying with the notice period depend on the amount of time the employer gave you before terminating your employment. If the amount of notice given to an employee is less than what was stated in their contract, then the employee can ask for compensation from their employer. However, if an employee quits their job without giving notice as per their contract, then they will have to give up any severance (payment), benefits, or bonuses that were supposed to be provided to them by their employer.

Also Read: How To Stop Candidates From Backing Out During Notice Period?