Hi,
I am working in MNC, having almost 6 years of experience. I joined my present employer on Dec 2009 and, due to personal reason, I have decided to get release from my company. My notice period was 1 month based on offer letter.
On May 2010, Company sent advisory mail stating that notice period has been revised to 3 months for all employees and the same would be effective from June, 2010.
When I resigned from my present employer after June, 2010, HR told me that 3 months of notice period are mandatory. Meanwhile, I have got release form my client and my Supervisor, and I will be on bench for rest of 2 months. Therefore, I asked my HR to release me and I will pay the compensation amount in lieu of Notice Period. My HR is stating that this decision has been taken at organization level and Organization is not accepting any buy-out in lieu of notice period.
Can Company hold employees based on such stubborn decision? Because buyable option is available based on offer letter, I would eagerly opt for the same but HR is telling that company is not ready to take the amount rather company will take the cost overrun and pay my salary.
I do not understand whether there is any way to get release from my company. They also told me that if I go and join somewhere else they will sue me stating “dual employment” even though I have already resigned from my present company. Can Company sue employee even after resignation? I have already stated my consent, then why would company hold me and jeopardize my career.
Please tell what to do?
From India, Madras
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I am working in MNC, having almost 6 years of experience. I joined my present employer on Dec 2009 and, due to personal reason, I have decided to get release from my company. My notice period was 1 month based on offer letter.
On May 2010, Company sent advisory mail stating that notice period has been revised to 3 months for all employees and the same would be effective from June, 2010.
When I resigned from my present employer after June, 2010, HR told me that 3 months of notice period are mandatory. Meanwhile, I have got release form my client and my Supervisor, and I will be on bench for rest of 2 months. Therefore, I asked my HR to release me and I will pay the compensation amount in lieu of Notice Period. My HR is stating that this decision has been taken at organization level and Organization is not accepting any buy-out in lieu of notice period.
Can Company hold employees based on such stubborn decision? Because buyable option is available based on offer letter, I would eagerly opt for the same but HR is telling that company is not ready to take the amount rather company will take the cost overrun and pay my salary.
I do not understand whether there is any way to get release from my company. They also told me that if I go and join somewhere else they will sue me stating “dual employment” even though I have already resigned from my present company. Can Company sue employee even after resignation? I have already stated my consent, then why would company hold me and jeopardize my career.
Please tell what to do?
From India, Madras
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I too am in a similar situation. I am working with a big private company.
Upon joining the company, the appointment letter states, "On separation - employee or employer can give three months' notice OR payment in lieu of the notice period."
On July 2nd, I submitted my resignation at 9:00 a.m. to my reporting manager. Surprisingly, at 9:45 a.m., he forwarded me a policy via email dated June 27th, stating, "Payment in lieu of the notice period is no longer permissible, and the employee must serve the full three-month notice period."
I have already finalized a deal with a new employer and committed to joining within 1-1.5 months. They have agreed to compensate the payment required for the notice period. I was confident due to the clause in the appointment letter and recent examples.
Now, I am in a difficult situation. The new company wants me to join within 1.5 months maximum (as agreed earlier) and with a relieving letter.
However, my current company is adamant about not allowing me to leave before the full 3 months (I have discussed this with HR and the business head without success) and is referencing a policy of which I was not previously aware.
These days, companies are manipulating policies and compelling employees to serve the notice duration.
From India, Mumbai
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1Upon joining the company, the appointment letter states, "On separation - employee or employer can give three months' notice OR payment in lieu of the notice period."
On July 2nd, I submitted my resignation at 9:00 a.m. to my reporting manager. Surprisingly, at 9:45 a.m., he forwarded me a policy via email dated June 27th, stating, "Payment in lieu of the notice period is no longer permissible, and the employee must serve the full three-month notice period."
I have already finalized a deal with a new employer and committed to joining within 1-1.5 months. They have agreed to compensate the payment required for the notice period. I was confident due to the clause in the appointment letter and recent examples.
Now, I am in a difficult situation. The new company wants me to join within 1.5 months maximum (as agreed earlier) and with a relieving letter.
However, my current company is adamant about not allowing me to leave before the full 3 months (I have discussed this with HR and the business head without success) and is referencing a policy of which I was not previously aware.
These days, companies are manipulating policies and compelling employees to serve the notice duration.
From India, Mumbai
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For both of you, any such kind of notices (in amendment) should be communicated to employees in writing or in any other manner that is ready to be proven; otherwise, they are not acceptable. This is the ethics and policy that every company follows.
From India, Hyderabad
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From India, Hyderabad
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Dear,
The notice period cannot be changed without mutual agreement. Therefore, your offer to buy out the notice period itself is genuine. Dual employment will arise only when you are working. Please consult a lawyer in your hometown and send a legal notice enclosing the Demand Draft for your buyout notice period. This will close the issue, and your lawyer can also request the relieving letter. Even if they don't issue the relieving letter, with a legal notice and proof of payment, your fair play can be easily proven.
With Regards,
E-mail: rajanassociates@eth.net
Mobile: 9025792684
From India, Bangalore
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The notice period cannot be changed without mutual agreement. Therefore, your offer to buy out the notice period itself is genuine. Dual employment will arise only when you are working. Please consult a lawyer in your hometown and send a legal notice enclosing the Demand Draft for your buyout notice period. This will close the issue, and your lawyer can also request the relieving letter. Even if they don't issue the relieving letter, with a legal notice and proof of payment, your fair play can be easily proven.
With Regards,
E-mail: rajanassociates@eth.net
Mobile: 9025792684
From India, Bangalore
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Thank you, Rajan, for your invaluable input.
Couple of things I would like to mention here.
1) In my offer letter, it is written that "I will abide by any change in policy that would be taken based on business need". Though such clauses are arguable, the company can easily aggrandize any rule and regulation based on such clauses. Signing to any such clause also reserves rights to the company so as to when and how rules will be changed.
2) Is there any regulation on the notice period based on service periods? If a person has not served more than seven months, why would he serve a 3-month notice period? A person can think of changing employers early only if he finds huge disappointment in work than what was proposed at the time of joining or a serious personal issue. If both scenarios are true, how can an employer block that resource stating a 3-month Notice Period? I think regulations are made not for employees, but for employers. That's why several companies have different structures and clauses in offer letters. It's how they skin a cat.
This is very ridiculous that the same company, which may be very particular about serving a 3-month notice period, is actually asking people to join within 15 days!!
@ratushar: As you are in the same predicament, I think you can ask your new employer to stretch the joining time a bit.
Thanks
From India, Madras
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Couple of things I would like to mention here.
1) In my offer letter, it is written that "I will abide by any change in policy that would be taken based on business need". Though such clauses are arguable, the company can easily aggrandize any rule and regulation based on such clauses. Signing to any such clause also reserves rights to the company so as to when and how rules will be changed.
2) Is there any regulation on the notice period based on service periods? If a person has not served more than seven months, why would he serve a 3-month notice period? A person can think of changing employers early only if he finds huge disappointment in work than what was proposed at the time of joining or a serious personal issue. If both scenarios are true, how can an employer block that resource stating a 3-month Notice Period? I think regulations are made not for employees, but for employers. That's why several companies have different structures and clauses in offer letters. It's how they skin a cat.
This is very ridiculous that the same company, which may be very particular about serving a 3-month notice period, is actually asking people to join within 15 days!!
@ratushar: As you are in the same predicament, I think you can ask your new employer to stretch the joining time a bit.
Thanks
From India, Madras
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@Psaha: Thanks, I have tried talking to my new employer - they are ready to offer two months, but 3 months are not acceptable. In fact, in my case, I was not aware and informed about such changes in the notice period while accepting the offer from the new employer or even at the time of putting in my papers. Now they have come up with a policy and are forcing me to follow that.
@VS Rajan - as suggested by you, I am trying to talk with some labor law consultants and get my fundamentals clear before I talk with my current company. I am looking for a good consultant in Mumbai - please share if anyone is aware of one.
From India, Mumbai
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@VS Rajan - as suggested by you, I am trying to talk with some labor law consultants and get my fundamentals clear before I talk with my current company. I am looking for a good consultant in Mumbai - please share if anyone is aware of one.
From India, Mumbai
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