How Do You Handle Employees Skipping Notice Periods? Need Help with a Circular Draft

My employee resigned from his job and he is not ready to serve a 1-month notice period. I want to send a circular to all employees to emphasize the importance of serving the notice period without exception. Can anyone please send me the draft?

Including Notice Period Clauses

Normally, such clauses should be included in the appointment order/offer letter itself. In the absence of a notice period clause in the appointment order, the same can be introduced only by sending a circular/notice to all employees as prescribed under Section 9A of the Industrial Disputes Act.

Notice Period for Managers and Non-Managers

Regarding managers, you can implement this change without official communication by providing a letter to the concerned employee stating that henceforth their notice period will be one month/two months/three months. However, for employees without managerial powers, the notice period, like any change in service conditions, would require a common notice as per law.

Legal Requirements and Practical Considerations

It is important to note that, in order to terminate an employee, the employer is required to give notice. Nowhere in any Labour Act is it mentioned that an employee should give notice if they want to leave a company. Hence, the fourth schedule to the ID Act, which outlines changes in service conditions requiring notice, does not specify a notice period. However, in practice, the notice period has been recognized as one of the service conditions. Thus, it is advisable to adhere to it. Otherwise, you may need to have a Standing Order drafted and certified by the Labour Commissioner. If workers object to the notice issued under Section 9A of the ID Act, then you will have to abandon the matter.

The format as per the Industrial Disputes (Central) Rules is attached.

Hi, Why did that particular employee refuse to serve a 1-month notice period? On what grounds? Do you have a notice period clause in your appointment letter? Refusing to serve the agreed notice period will lead to the forfeiture of a proper relieving and may result in termination. Suggestion: I suggest not circulating information about the notice period suddenly, as it might spread negativity. Instead, during one-on-one discussions, explain to employees the importance of the notice period indirectly.

In our Appointment Letter, we already mentioned a 15-day probation period for the employee to confirm their employment, followed by a one-month notice period. However, the employee has received an offer from another company and is unwilling to fulfill the one-month notice period. In this scenario, what should be my next course of action?

Hi, you can insist on a proper notice period. Explain to him that a proper notice period will help him to get a proper relieving. Alternatively, if your management is okay with one month's pay in lieu of the notice period, then you may provide him with that option. However, it would set a precedent. Hence, be prudent in your decision.

If the employee does not serve the notice period, then as per the law, you can take legal action to recover the notice pay. Beyond that, there is little you can do. You may do some more things like not giving a relieving letter, not issuing an experience certificate, and giving negative feedback in background verification. However, each of those has its own problems and, in any case, does not really solve your problem of lack of notice. All it will do is get you petty revenge.

Please consider the financial and Employee Relations impact of both courses of action.