Is It Legal to Enforce a Notice Period During Probation? Seeking Advice on Employee Dispute

Hi all, I have one question regarding resignation during the probation period. In the offer letter, we mentioned that you have to serve a notice period of 1 month during the probation period. One of our employees is arguing that "there is no rule for resignation in the probation period for one month as per the law. I am giving spot resignation, and the company has no right to hold my salary." Is this true or not? Currently, the company is holding his salary, and he is going to the labor office for legal action. Kindly give me a suggestion on what I should do?

Regards, DIVYANG DESAI

Dear Divyang,

Yes, there is no specific law on the notice period. However, the employee has to follow the terms outlined in the appointment letter, which he duly signed. He accepted and signed it at the time of joining, so kindly ask him to read the appointment letter carefully.

Please note that the Industrial Employment (Standing Orders) Act-1946, which applies to employees, provides for a probationary period of up to three months. Regarding termination and the notice period, the employee needs to serve the notice as mentioned in the offer/appointment letter.

As an HR professional, it is essential to strictly maintain and implement labor laws and company norms. No one can threaten you in this manner. If he wants to go to the labor court, he can, but ultimately, he has to follow what he has accepted and signed in the appointment letter.

*If the employer/management wants to release him with immediate effect, you can.

The employee on probation is bound to serve the notice period as stated in his/her appointment letter. The final decision in such scenarios needs to be taken by HR; they may permit the staff to resign immediately without any financial implications or require a payment in lieu of the notice period.

However, most organizations tend to relieve the staff immediately during their probation period without requiring them to serve the notice period or make a payment in lieu of it.