Hello all,
I am working as an HR in a software company located in Vizag, Andhra Pradesh. Recently, our management decided to change the company policy. The new policies are as follows:
1. Management can terminate an employee without any reason by providing 30 days' notice (equivalent to 1-month salary).
2. An employee is required to serve a notice period of 90 days from the date of resignation.
I am seeking guidance on the different rights that employers and employees have during the notice period. Please provide suggestions considering that the company is located in Andhra Pradesh.
Thank you in advance!
From India, Hyderabad
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1I am working as an HR in a software company located in Vizag, Andhra Pradesh. Recently, our management decided to change the company policy. The new policies are as follows:
1. Management can terminate an employee without any reason by providing 30 days' notice (equivalent to 1-month salary).
2. An employee is required to serve a notice period of 90 days from the date of resignation.
I am seeking guidance on the different rights that employers and employees have during the notice period. Please provide suggestions considering that the company is located in Andhra Pradesh.
Thank you in advance!
From India, Hyderabad
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Understanding Employment Contracts and Notice Periods
Providing employment is essentially entering into a contract with someone who can achieve organizational goals through their efforts and skills. Therefore, when entering into a contract, both the offeror and offeree should have equal rights in terms of terminating the contract, based on the principle of natural justice.
There is no legal rule defining a notice period. Hence, it purely depends on the offeror in this case. They may have their reasons, but it is always better to disclose the notice period to the employee before they join. This approach makes sense.
Best Regards,
Ravichandra Paanem
From India, Hyderabad
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Providing employment is essentially entering into a contract with someone who can achieve organizational goals through their efforts and skills. Therefore, when entering into a contract, both the offeror and offeree should have equal rights in terms of terminating the contract, based on the principle of natural justice.
There is no legal rule defining a notice period. Hence, it purely depends on the offeror in this case. They may have their reasons, but it is always better to disclose the notice period to the employee before they join. This approach makes sense.
Best Regards,
Ravichandra Paanem
From India, Hyderabad
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Hi Krishna,
I agree with Mr. Ravichandra. However, ensure that there is a foolproof disciplinary process and protocol being enforced in your organization. Make sure that no productive and non-toxic resources are apprehended by this amendment. Assume that your management wants to remove some targeted resources from the system.
From India, Madras
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I agree with Mr. Ravichandra. However, ensure that there is a foolproof disciplinary process and protocol being enforced in your organization. Make sure that no productive and non-toxic resources are apprehended by this amendment. Assume that your management wants to remove some targeted resources from the system.
From India, Madras
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Like Ravichandra Paanem mentioned, it depends on each company's views and policies. However, you also need to look at it from an HR perspective. Even though employees may not openly raise or complain regarding the disparity, they are sure to notice it, leading to avoidable employer/employee friction. The normal consequence is a reduced 'sense of belonging' from the employee's end.
Concerns with a 90-Day Notice Period
A 90-day notice period is somewhat of a misplaced view that most companies hold. Once an employee resigns, their interest in work is sure to decrease. What would the company gain in such a situation? Although there are exceptions where the handing-over activity does take a significant amount of time, they cannot be the norm. A better approach could be to have the notice period as 60 days from both ends.
Regards,
TS
From India, Hyderabad
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Concerns with a 90-Day Notice Period
A 90-day notice period is somewhat of a misplaced view that most companies hold. Once an employee resigns, their interest in work is sure to decrease. What would the company gain in such a situation? Although there are exceptions where the handing-over activity does take a significant amount of time, they cannot be the norm. A better approach could be to have the notice period as 60 days from both ends.
Regards,
TS
From India, Hyderabad
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Notice of Employee Change.doc