To have 3 months notice period for an employee in any company is it Good or Bad?
Off late I had come across a few employers & HR’s who are deliberately not choosing buy-back option with regards to the notice period and are asking employees to serve 3 months mandatory notice. Same companies do not pay 3 months’ salary when it comes to termination or in case employees who are released due to no project.
How ethical are the company policy?

“Personally I do not recommend such companies/policies; people in such companies feel they are locked up by the company, in case of their career growth. Employees will stay less engaged at work. Negative vibes spread in such work culture as employers are forcefully retaining employees who does not want to continue with the company.”
I would like to have Your opinion, as this will help me in better understanding.

From India, Madras
Acknowledge(0)
Amend(0)

Hello Getsie Jesse,

A three-month notice period has its advantages and disadvantages.

If you have to change jobs, the new company needs its processing time. Afterwards, you also need time to wind up, particularly if it is in a different place. The existing company needs time to find a replacement.

LESS THAN THREE-MONTH NOTICE PERIOD

However, if you get a good offer with a short notice period, say a month, then a three-month notice period may not be to your advantage. In another scenario, if the existing management decides to terminate the services of an individual, he will find it very difficult to find another job immediately. Companies have their difficulties in finding a replacement. Hence, they opt to go for a full three-month working period.

WHAT BIG CORPORATES DO

They view it altogether differently. If a person has decided to go, then they feel the person may not deliver with the same efficiency as he had done in the past. So they sometimes release a person sooner than the notice period. However, this cannot be taken as a rule. Many possibilities exist, and decisions are made on a case-by-case basis.

V. Raghunathan

From India
Acknowledge(0)
Amend(0)

Hello Getsie Jesse,

This topic was discussed recently in a different context -- please see this thread: https://www.citehr.com/467582-can-we...ml#post2078787

@ V.Raghunathan-- I think you are mixing up the '3-month Notice Period' and the 'Notice Period' aspects. What Getsie Jesse is referring to is the question of 'whether the notice period should be 3 months' -- not whether the notice period should exist at all.

Regards,
TS

From India, Hyderabad
Acknowledge(0)
Amend(0)

I find three months is too long a notice period. Many a time’s companies think having 3 months notice actually gets their work done. For some very critical position it’s good to have such an option, But there is no guaranty that productivity will be as much as it was before resignation submission. Now that this employee has got an offer he talks about this to his coworkers and also about some advantages that he will have in the new company. This is actually induces negative emotions within the team.

If you can’t find resource in 30days for a replacement it’s the HR department’s duty and the company’s duty to introspect why they are unable to do a replacement with their existing recruitment team. The HR team and the company will get the actual reason and they will have to work on the root of the issue and get it settled. If not your attrition at the end of the day will stay high and you recruiters will constantly have a job to do only replacements and HR will have more and more documentation, induction and settling of new employees to work but the core essence of the HR work will always be missed and it will be a bunch of employee of all departments who have high level of negative charges on them and this will be cycle of blame game and a never ending process, productivity lost and profit actually will start taking a nose dive.

I actually would like to understand what the HR with 90 days notice has got to say.

Thank you V.Raghunathan and TS is right am more focused on the impact of 90days notice i.e. 3 month notice period. And would like both of you to give me your input on the above and what are your ethical thoughts that HR’s will have to do.

From India, Madras
Acknowledge(0)
Amend(0)

Hello Getsie Jesse,

Firstly, I am a bit confused about your profession—Are you not into HR and/or Recruitment? Your line "......and you recruiters will constantly have a job to do only replacements and........" creates doubt.

Looking at the core issue you raised, this looks more like the government mindset years back [pre-1991] when the whole government mechanism worked on the notion [ill-conceived, but thought by successive ones to be the right way then] that to increase revenue, the only way was to raise taxes and have things under their Governmental control [through Licenses—then called the License Raj].

Until a couple of years back, the Notice Period across sectors was 1 month [with exceptions]—and things were still working fine, minus the additional headaches.

As far as I can see, the basic motive of this enhanced NP seems to be driven by the premise that this will discourage employees from thinking of resigning and other companies to have a rethink about hiring employees of this company [whichever it is], due to the long gestation between Offer and Joining—essentially to handle attrition.

I am not sure how successful this strategy has been for the companies having this revised policy—only some independent survey would bring out the reality/truth.

But I think the companies failed to visualize the downsides of such a step.

There's another collateral action that I noticed. To ensure the employee remains busy during the NP, some companies load him/her with additional jobs—not-so-critical ones—after completing the KT activities. Quite often, such assignments were way off the core strengths of the employee—sort of just keeping the guy busy. Sometimes I wonder what the company gains by such actions—except spending on the employee's salary and the disadvantage of getting a low-end job done by a high-end salaried person to do it [meaning spending, for example, 10K where spending 3K would have sufficed].

The focus seems to have shifted from the cost-benefit per employee [vis-à-vis the company costs] to ensure none [ideally] leave the company, irrespective of the costs involved.

From another angle, the focus shifted from retention to controlling attrition—retention obviously involves a lot of proactive work by the company while controlling involves just passing a new policy—easier and convenient for sure.

Regards,

TS

From India, Hyderabad
Acknowledge(0)
Amend(0)

Dear Jesse,

As an HR professional, I believe that an employer can impose a three-month notice period for managers and employees in grades above, while one month's notice would suffice for all other grades.

Best regards,

Jayant Nisal
Corporate Manager - HR/IR (Consultant)

From India, Pune
Acknowledge(0)
Amend(0)

Hi TS,
Thank you for your time and response, off late I have been seeing a lot of unethical practice in HR system and even HR justifies them. I believe in win-win situations, only then truly people win.
I am very much part of the HR system, I am clear about my thoughts but I found this practice (3 months notice) has been drastically increasing in the last 2 years, some Managers and HR personnel are taking undue advantage of this notice period. I have started seeing more employees becoming victims. As a result of seeing such companies and their practices, I had marked the statement which you have listed in the first line of your conversation. However for the rest of your content we both are thinking the same and I agree with you.

From India, Madras
Acknowledge(0)
Amend(0)

Hello Getsie Jesse, All I can say is the concept/practice of "Penny wise, Pound Foolish" isn’t limited to small companies. Only the scale/grade varies I guess. Rgds, TS
From India, Hyderabad
Acknowledge(0)
Amend(0)

If Gordon Gekko was still wandering around Wall Street today, he’d probably be surprised to learn that his favorite mantra, ”Greed…is good,” has been replaced by “Ethical is good.”

How do businesses get labeled ethical?

The standard definition of ethical behavior from Merriam-Webster is, “conforming to accepted standards of conduct,” while words such as “moral” “virtuous” and “honest” serve as synonyms. The extensive list of twenty-first century unethical corporate behavior from companies such as Enron Corp., Bear Stearns, and Arthur Andersen, Satyam, Sharada (WB) and the many other dubcious finanace companies have undoubtedly left many consumers feeling jaded.

The culture and values practiced by an organization reinforces its commitment and responsibility to those who serve in the organization.

In areas that include:

Talent Acquisition

Learning and Development

Employee Benefits

Communication- companies that are steeped in values, culture and tradition, ensure that company communications are frequent highlighting business initiatives and strategy, employee recognition, work-life assistance, volunteerism opportunities, business conduct and ethics practices and social responsibility practices.

For gold you have a standard of purity - 24 carat, unfortunately we do no have now for measuring ethical behaviors.

This might help understand what is being discussed:

https://en.wikipedia.org/wiki/Business_ethics

The World's Most Ethical Companies - Forbes

ETHICAL ACCREDITATION MEMBERSHIP <link updated to site home> ( Search On Cite | Search On Google )

The advantages of being ethical | Financial Post

Crane and Matten blog

Ethical business: companies need to earn our trust | Guardian Sustainable Business | Guardian Professional

Why Be an Ethical Company? They're Stronger and Last Longer - Businessweek <link updated to site home> ( Search On Cite | Search On Google )

From India, Hyderabad
Acknowledge(0)
Amend(0)

Hi everyone,

Three-month notice period is known to an individual before joining a company. So, according to me, if anyone does not agree to it, one should negotiate and get it reduced to one month before taking up the assignment. In general, all companies include a clause about the notice period as a part of their appointment order conditions. Even if it is not given, one can try to get it the way one wants. Such conditions as these are governed by demand and supply in the market and how desperate the company or the individual is. If the candidate is very good, management relaxes the notice period as they do not want to lose talent for this reason. In my view, one cannot initially agree and later on brand it as unethical.

V. Raghunathan

From India
Acknowledge(0)
Amend(0)

Ethics is more than what we have actually been seeing here..in the land which boasts of Gandhi, it's sad to see us falling on the "ethical standards barometer"

Is the unethical behavior that we witness a price we pay for our form of capitalism and free market policies, or are businesses basically amoral?

Where business is concerned, I feel that the starting point is the recognition that whilst Gandhi had genuine saintly qualities, he was also a man of the world, a man who went about with his eyes open and a man who was aware of what was going on, good and bad, around him. Not only was Gandhi very aware of the world of business, we know that he depended on certain industrialists to support a number of his ventures and, to some extent, himself personally.

Some elements of what one can say about Gandhi and business ethics would relate equally as well to today as when he lived – for example, that Gandhi seemed to make little distinction between ethics in the different spheres of life.

The ethics that applied to an individual also generally applied to businesses of all sizes and to individuals in business. He believed a business could and should be conducted with complete honesty. Indeed, a business that was run honestly would be more successful than one which was not.

In business as well as personal life he subscribed to the view : "Honesty is the best policy." A business person had every right to earn a livelihood from their business, although if vast income was earned from the business, the business person should give what he or she did not need to the community. This ideal was contained in his theory of Trusteeship. Fundamentally, Gandhi viewed business as a form of service to the community. This was the spirit in which the business person should approach their labor.

The above aspects of Gandhi’s attitude to business ethics relate to today as much as to during his lifetime. If we are seeking a contemporary context, Gandhi’s thoughts need to undergo interpretation because of the development the business world has undergone in the last 50 years.

Trusteeship was derived from Gandhi’s spirituality.

When corporates fail to meet the objectives that they have set for themselves, a review of corporate governance practices follows and fresh regulation is introduced. However, the public debate on the standards of acceptable corporate behavior appears devoid of moral expectations.

Our corporations should not only be legal and economic beings but moral ones too. Gandhi’s concept of “trusteeship” can serve as a philosophical foundation for businesses and provide requisite moral guidance.

Gandhi, better known for leading India’s nonviolent freedom struggle, advocated “trusteeship” as a moral basis for individuals in positions of wealth. He conceived trusteeship as a system wherein the individual considers that part of his wealth in excess of his needs as being held in trust for the larger good of society and acts accordingly.

Gandhi believed that economic policy and business behavior could not ignore moral values. He stated that nature provided enough to satisfy man’s needs but not man’s greed. Since the rich had wealth in excess of their needs, it was their duty to use the balance for the welfare of the others.

Gandhiji told such words to Jaman Lal Bajaj.

Trusteeship means you are not the owner of the business empire. You are running the business keeping the mind the interests of various stakeholders i.e. shareholders, bankers and lenders, employees, public affecting from pollution due to running of industries, government's share of taxes etc.

As the businessmen were not taking care such issues (taking care of interests of stakeholders); CORPORATE SOCIAL RESPONSIBILITIES, CORPORATE GOVERNANCE etc. have been LODGED on them by LAW.

For more reading and insights into "TRUSTEESHIP" please follow these links:

http://www.ccleague.org/files/public...sourcesAll.pdf

<link outdated-removed> ( Search On Cite | Search On Google )

http://gvpwardha.in <link fixed>

http://stthomas.edu <link updated to site home>

<link no longer exists - removed>

http://tmu.ac.in <link fixed>

From India, Hyderabad
Acknowledge(0)
Amend(0)

The general and basic problem that has been with this type of arrangement is that it is not honored by the company's side unless it suits their needs and requirements.

Many employees who give a three months' notice as per the agreement/terms of employment are relieved the next day or within a week on the pretext/excuse that since they have already submitted their resignations, the company is free to dispense with their services. They are not paid the salary for the remaining period of notice.

It is sad to see several such cases in this forum, and sadder still to find certain HRs supporting such unfair actions on the plea that once an employee puts up his resignation (even though it is a notice of resignation effective upon the expiry of the notice period), their services can be terminated.

Warm regards.

From India, Delhi
Acknowledge(0)
Amend(0)

Agreed, Mr. Raj Kumar. This is what I had been seeing for quite some time. Also, when the employer understands that the employee wants to leave within 30 days and they are unable to continue their 90 days' notice, there is a forced situation created by the employer, making the employee pay his/her salary for the remaining notice period. At times, some employers are not even ready to reduce the 90 days' notice in the first place, not because of the need for resources but due to pure ego, which they blame on the company policy.

A policy is a set of rules that aim to build the company, not break it down.

From India, Madras
Acknowledge(0)
Amend(0)

Frankly I am not really sure IF it’s EGO or pure & plain SADISTIC nature playing out Getsie Jesse. Rgds, TS
From India, Hyderabad
Acknowledge(0)
Amend(0)

Both. Other than this Shylockian approach, another motive is to make cash profit out of any situation. Warm regards.
From India, Delhi
Acknowledge(0)
Amend(0)

I think you are right, Raj Kumar.

Recently, we have had to deal with a client's HR Head (a very senior guy) who preferred to delay the hiring of a critical position (which needed advanced technology understanding even during the resume scrutiny phase) by five months rather than route it through us. Finally, the Technical Head had to intervene last week and insist we handle it. The HR Head just wanted to save the company a few thousand as fees&mdash;even if it meant the function suffered for months&mdash;all the while knowing our technical capabilities.

The situation Getsie Jesse mentioned is just another manifestation of the same psyche, I guess&mdash;looking at the 'here and now' rather than thinking of the 'long-term/larger-perspective consequences' of one's actions. Sometimes, I wonder how some HR professionals can afford to be so short-sighted when their function, by nature, demands a very long-sighted approach to any situation/decision.

Regards,
TS

From India, Hyderabad
Acknowledge(0)
Amend(0)

Dear Getsie Jesse

I have two views on 3 months notice period. I don’t know will others seniors member of the community will agree with it or not..

- If you see mostly 3 months notice period are present on those company which are working in niche domain or facing difficulties in getting replacement for their profile or as a strategy for employee retention. I think notice period is somewhat related to the tentative time frame for handover of work & getting new employee on board. If you see that many companies don’t get replacement that easily if they are working on niche domain & some more reason are also present i.e. bad work environment, high attrition. During this period company also try for retention a good employee by every possible means. If employee resigned due to tension, or anger or stress in work. Then 3 month is long duration to make up his mind. But I personally feel that this method can stop a employee for few months only. But if he face the same situation again no one can stop him.:)

- Now about salary part & termination of employee: Termination of employee is different situation, company terminate employee because they don't want him anymore in the company. So, they will not waste there money for it. Now this situation become saving money or cost cutting for them. It's also somewhat also similar for people on bench a well.

Ethical or not it sometimes depends on situations employees are facing. I have saw employees if they're aware their NP is 3 months, they will try to get as much job offers they can by hook or cook, It's long duration to try the fate.. where they lie with many companies for getting good job offers (not ethical). Not every employee changes their job because they do not like the company any more. Sometime they just want growth in career or learning new things!! I think company & employee both uses 3 months notice period to make things better for them and for company it’s time to get new employee on board & completion of handover thing. If employee feel like he's a prisoner may be he think his work is over in the company but employer have to think of his replacement and back up.. I think it's depends on employer to employer how they will treat the employee who’s serving the notice period.. Not all managers are angels not even devils. But yes!! Self-interest is their highest priority.

I have giving my point of view as per to my small experience.

Regards

Nancy

From India, Pune
Acknowledge(0)
Amend(0)

Dear Nancy,

We welcome diverse opinions as long as they are sincere and have merit, irrespective of whether the majority agrees with them or not. I appreciate your opinion and agree with it to the extent that in certain niche industries and professions such as IT software, mining, mineral exploration, financial institutions - investment and merchant banking, a longer notice period of 3 months is not only desirable but often a necessity. However, the spirit should be equally honored by both the concerned parties.

Notwithstanding the above, what is felt abhorrent is the fact that many companies are adopting this practice without any need but to make things difficult for employees who wish to leave the organization. Such a practice can never be a remedy for attrition nor bring about any positive effect except saving money to the extent the company wishes to exploit the hapless employee.

Warm regards.

From India, Delhi
Acknowledge(0)
Amend(0)

This is getting really interesting with each advancing day, with admirable contributions from all, with of course a few sparks flying here and there, avoidable, but I guess it's inevitable.

The different styles of management influence the "ethics" practiced; however, work ethics isn't a methodology. Just like Rome was not built in a day, work ethics too is not built in a day!

These links can help understand what I've just said.

- http://jmu.edu <link fixed>
- http://www.sbc.edu.hk/BonaDigest_Chi...ly/7c_Wong.pdf
- http://www.vikalpa.com/pdf/articles/..._dec_33_44.pdf

Work ethics can work based only on the accumulation of learning and behaving properly. It can successfully work only when everybody really understands the real meanings and behaves based on them. Participative management can really help, and to begin with, practice leaders must be the first to behave on good work ethics. They shouldn't be walking in the front and expect others to follow; instead, walk alongside, so no one really knows who the leader is.

Irrespective of the kind of work, working is to make your heart good. We should deem working itself as very precious, and therefore the first principle of working is not making money. Traditionally, discipline that is learned from parents and teachers at an elementary school is regarded as very important and valuable. Working ethics are deeply linked to discipline.

Both sides - the management and the individuals play "cat and mouse"; therefore, it's difficult to actually say what's right. The perception needs to change, and each side should understand that they need each other to succeed.

From India, Hyderabad
Acknowledge(0)
Amend(0)

Many divergent views have emerged in trying to analyze whether a three-month notice period is required or not. Views have been expressed from the employer and employee point of view. Ethical behavior on the part of the employer and employee could solve the problem. However, seeing the present situation, we are dreaming of an ideal case that is non-existent.

So, if prima facie a three-month period policy is misused, what are the alternatives? One month? It is in vogue, and many companies do follow it. For the sake of this discussion, it will be worthwhile if experts who have handled cases with a one-month notice period share their experience.

Is no notice period an alternative? Certainly not. However, many companies immediately release a person upon resignation, irrespective of what period is agreed as the notice period. Members may like to share their views.

V. Raghunathan

From India
Acknowledge(0)
Amend(0)

Very true, Mr. Raghunathan. Many employees are immediately released from their services irrespective of the notice period, but this depends on the circumstances.

Regards,

Everyjobs Team

For the latest jobs, visit Every Jobs | Find All Jobs at www.everyjobs.com.

You can join us on:
- Facebook: http://www.facebook.com/everyjobs2013
- Twitter: https://twitter.com/everyjobs2013
- LinkedIn: Everyjobs | LinkedIn

Also, send your resume to jobs@everyjobs.com.

From India, Delhi
Acknowledge(0)
Amend(0)

Dear Sir
Thank you Raj Kumar Sir for your appreciation.
I agreed with your point that employers use unethical means when employees resigned (critical resource) in the name of their policy. This policy sometimes varies from employee to employee also.
Here I want to know whether we have any forum present in India who can take action against it. Or HR can able to take action atleast against the reporting manger for unethical behaviors like loading the employee with difficult tasks or not helping the employee or harassing the employee because changing company policy is not that easy. As a HR we have to help employee, professionalism is also some things. No one has right to harass any one just because they’re leaving the company.
We have law of natural Justice!! Will it be helpful in such cases?
I hope I am not diverted from the discussion.
Regards
Nancy

From India, Pune
Acknowledge(0)
Amend(0)

Nancy,

I'm glad you are thinking and inquiring if there is any forum present in India which can take action against unethical behaviors, harassing the employee, and your feeling as an HR we have to help employees. Professionalism is also something. Though I would love to hear from others and also from Mr. Raj Kumar to whom you've addressed this query, I must admit as much as I know there isn't one strong body, or if there is any, I wonder where, and this is restricted to India.

I have been (in all places that I served) and will always be a strong advocate for the employees (wherever I am or will be). I've had no issues doing so, though it takes a long time to convince people to change their original thoughts and to look at a different perspective. At times I have felt it's probably not so difficult to convince managements, as they can see the BIG PICTURE, the future of the enterprise, and their own future; however, on the other side, it's the individuals who need to do a lot of thinking to carve their future. I find that IT has been the spoiler of individuals because of the demand and supply, money, and comfort. They are just lucky to be in the right place at the right time, perhaps doing the right thing. The industry is nearing its peak while some of the other avenues are growing, and if I were to risk a prediction, I would say that IT will be just another support service as Administration is. We have to take lessons from all this, and those who will enter the newer arenas such as Energy, Environment, Education, and Entertainment should take enough care to enable smooth engagement and ensure that they formulate a "culture" that is steeped in "Ethics and Values," which is what our country needs desperately at this point in time. Approaching our 67th Independence Day, I would really want to ask everyone, "Are we really Independent, in India where 'Ethics, Morals, Values, and Honesty are at the lowest?"

I sincerely believe "we can" because we are an amazing race on this planet along with a few.

From India, Hyderabad
Acknowledge(0)
Amend(0)

Dear All,

I would like to know if anyone is aware of any forum that can take action against unethical behavior by employers. It will be sad if we don't have any forum that can control unethical practices in India. As an HR professional, I am committed to helping my employees in this regard. By attempting to persuade, we may be able to change the management's mindset. I understand that this issue also impacts the company's image and brand.

I agree with Raman Sir's point that despite celebrating the 67th Independence Day, many reforms are still necessary. However, I am pleased that there are individuals who acknowledge this and are working towards change. In this community, I see people addressing such cases, indicating that we are not turning a blind eye or being indifferent. Instead, we stand against unethical behavior and advocate for change.

Wishing you all a happy Independence Day.

Kind Regards,
Nancy

From India, Pune
Acknowledge(0)
Amend(0)

Dear Nancy,

Thank you for your wishes on Independence Day, and our wishes are reciprocated.

Just a point to ponder over - what would Mahatma Gandhi, if he were alive today and serving as the Prime Minister, deliver as a message in his Independence Day speech while standing on the ramparts of the Red Fort? Similarly, what message would Pandit Jawaharlal Nehru, who delivered nearly 17 speeches on this day from 1947-1964, have for the nation regarding ethics and values?

I quote you, "But I am happy that there are people who understand this & trying for it. Like here in this community where I can see people bring such kind of cases. It shows that we are not ignoring it or careless about it. But we are against it and want changes on it."

I have immense pride in this land called India, and I believe there is hope. We are perhaps sowing the seeds. When we cut an apple, we can count the seeds, but do we know how many apples each seed carries?

Let's keep forging ahead - Chalo Munna Bhai style...

From India, Hyderabad
Acknowledge(0)
Amend(0)

Anonymous
Three months of notice period is a career killer. No company would hire a mid-level professional if they state during a job interview that he needs 3 months to join. A product's next version gets released in 3 months these days. Many people are forced to resign without having another job lined up and search for a job during that 3-month notice period. However, if the company finds out about this, they ask the employee to leave immediately. This is unethical. NASCOM/Labor authority should step in and urge companies to reduce the notice period to one month.
From India, Bangalore
Acknowledge(0)
Amend(0)

Join Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.







Contact Us Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2025 CiteHR ®

All Copyright And Trademarks in Posts Held By Respective Owners.