Is It Legal for My Company to Extend My Notice Period from One Month to Three?

Hi HR Professional Team, I am currently working in a pharma company. It has been one month since I joined the group, and I also received the appointment letter, which states a one-month notice period. However, a few days ago, the HR Head provided me with an acknowledgment letter indicating an increase in the notice period from one month to three months. I have not yet signed this acknowledgment.

Legal Possibility of Notice Period Change

I would like to know if it is legally possible for existing employees to be subject to this addendum.

Clauses of employment contract letters

Clauses of employment contract letters can be altered, amended, or modified by an employer. However, whatever changes, modifications, or amendments are made, they cannot be made effective retrospectively by the employer.

In your case, you were originally given a letter with a separation clause of one month's notice period intimation. Later, you were given a letter with a separation clause of three months' notice period intimation. This is possible by the employer, but please note that the changes shall take effect from the date of such notice or letter.

Changes in Employment Rules

No rule can be permanent but is subject to change or modification with prior notice given to all concerned parties. It is correct that amended or modified rules or terms regarding existing service conditions of employees cannot have a retrospective effect. However, at the same time, such changes should not result in two sets of rules being applicable to the same class of employees.

Therefore, an employer can increase the length of the notice period already established after giving proper notice in this regard. Any separation occurring after the change must comply with the new rule.

Check the Appointment Term Clause

Please check whether the appointment term contains a clause stating that you will be governed by the rules and regulations as enforced from time to time. Many organizations include such a clause, making it sufficient that changes are notified and then become binding. In this case, the amendment of rules cannot be denied.

Legal Perspective

Legally, you can always claim that you didn't sign the acknowledgment, but it depends on the arguments presented. The employer can prove that notice was given to you and that you did not reject it (no letter stating your disagreement), which implies your agreement. By continuing to work knowing the new rule, you have effectively accepted it.

Practical Considerations

In reality, you have no leverage unless you decide to take legal action against your employer, which could be more costly than the notice pay itself. The employer can afford to fight; can you?