Understanding Notice Periods: What Are the Legal Requirements for Termination and Resignation?

Hi friends,

Can anyone help me get answers for the following:

1. What is the minimum (legal) notice period for termination/resignation from employment? I ask this because different companies have different notice periods.

2. Can an employee be terminated or can he resign without notice during probation?

I represent an IT company with 26 employees.

Neel

Hi Neel,

Sorry for the late reply. There is no specific time period in particular. Generally, most companies ask employees to provide a notice period of at least 1 month, and it varies from company to company depending on their policies.

If you terminate an employee without any notice, you should pay a month's salary to the employee unless you have a very strong reason for doing so. In most cases, companies ask the person to resign if they want to terminate the individual for any reason.

I think you should include this in the policies of your company to avoid any problems in the future, as you are leading your own firm. Hope this helps. Good luck.

Regards,
Kiran

No, it is not applicable for the employees in the probation period. The reason being "PROBATION PERIOD," in the sense, the employee or candidate is under observation (generally, the probation period lasts for 6 months), and if you feel that this employee suits the work you assigned him, you can continue, or else you can terminate him. So, the above-mentioned things would not apply to the employees under the probation period.

Just for your knowledge, most companies employ a "probation period" for background verification of the candidate, such as his experience, all the documents provided by him at the time of joining, and stuff.

I hope this information will clear all your doubts. In case of any questions, do not hesitate to reply back, Neel.

Regards,
Kiran.

Hi Kiran, that was a great help. I have another doubt; hope you don't mind answering. If an employee resigns, say on the 1st of September and serves a notice (let's say 1 month), he works for us during that notice period. I think he has to be paid for that notice period during which he worked for us. Is it correct, or do we not have to pay for the notice period?

Neel

Hi Neel,

Yes, you do have to pay for each and every day he is with your firm, whether it be the notice period or whatever it may be.

For your knowledge, the notice period is generally employed for the benefit of the employer, allowing time to fill the leaving candidate's place in the notice period. Therefore, you should pay the candidate until his last day with your company.

I hope this clears your doubt.

Regards,
Kiran

Hey Neel,

Yes, you need to pay for the month he has worked under the notice period. Hope this clarifies the confusion :)

Regards,
Kiran.