Navigating Notice Periods: Is It Legal to Pay for Early Release from a Job?

Dear all,

I am working in a so-called 100-year-old company. As per our appointment letter, during the provisional period, there will be a 1-month notice period. After confirmation, the notice period will be 90 days. If it is not possible to stay for the full notice period, then the employee has to pay the basic salary amount for those days to the company for the release. Is that in accordance with the law?

Last week, the company announced that they will not take money from now on. However, everyone is still required to complete the full 90-day notice period. In this situation, what should we do?

Thank you.

Employer's Right on Notice Period

The settled position of law is that the employer has the right to insist on serving the full notice period or accept notice pay, partly or fully. So, it is not objectionable for changing the rule. However, it would apply prospectively, so the rule on the date of resignation would prevail.