Understanding Notice Period and Compensation for Unfulfilled Notice Periods in Employee Resignations - CiteHR

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Friends,

As you all know, all companies these days have a notice period for employees who resign. It can be 2 months or 3 months. In my opinion, the notice period should only be applicable if the employee is working on important projects where their absence may cause damage to the company. In such cases, the employee can train their replacement, making the notice period sensible. However, if an employee is on the bench with no work for 2 to 3 months and feels frustrated as they are losing valuable time and knowledge, and they receive a job offer that can significantly enhance their career growth and requires immediate joining, the notice period can become an obstacle to their growth. Does this make sense?

In situations where the notice period is not served due to genuine reasons like the one I described above, what could happen? In this scenario, the employee had agreed to the notice period clause during joining. So, my question is, in this case, when an employee wants to progress, the company becomes an obstacle to their growth, indirectly creating a problem. So, guys, let me know what could happen at worst if notice periods are not served when there is a genuine reason, as I explained above?

Awaiting your answers,

Shreedhar Kulkarni.

From India, Bangalore
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The notice period will normally be mentioned in the Appointment Order, which will become a service condition. Normally, the notice period can be compensated by notice pay. For example, if the notice period is 3 months and the person serves 2 months after submitting their resignation, they can compensate for the remaining one month by paying the company salary for one month in lieu of notice.

In some cases, companies waive the notice pay and relieve the employees, but it is not mandatory. The notice period/notice pay varies from company to company. As an employee, it would always be better to either serve the notice period or compensate for it. A smooth relieving process is always preferable as many companies conduct employment verification through reputable agencies. Any deviation from the above will always pose a risk. If the prospective employer becomes aware of any improper relieving, it may lead to unnecessary problems.

Regards,
Kalyan R

From India, Madras
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In a similar case, an employee has been satisfactorily serving for 3 years. The notice period is 3 months. However, upon resigning, the employee clearly states that they will only be able to serve 3 weeks of the notice period and requests to plan for a takeover of assigned activities and knowledge.

The Manager/HR, unfortunately, refuses to agree and insists on the full 3 months of notice to be served, which is not feasible as the next employer may not be willing to wait.

Handling Notice Period Disputes

What would be a good way to handle such a situation?

Thanks.

From India, Ahmedabad
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I totally agree with Kalyan.

Applicability of Notice Period

The applicability of the notice period for any designation or nature of work is decided by the company. The rights are reserved by them, and you can't decide based on your logical reasoning. Notice is a mutual understanding between employer and employee. The employer can stick to the rule or mutually agree not to enforce it. It totally depends on your relationship with your boss, management, and company. They can also waive it off in case of any genuine reason, but the rights are reserved with the employer.

So, it's better to serve the notice as much as you can to avoid any discrepancy in the future.

Compensating for Notice Period

You're talking about the actual reality of situations that arise mostly in life. In that case, if you are ready to compensate for the said notice period with your salary (compensate the remaining one month by paying the company salary for one month in lieu of notice), it can avoid any legal action. However, it's not a guarantee that you are properly relieved from the company. Issuing the relieving letter is again a reserved right of the company. Therefore, you need to inform the prospective organization about the low chances of not getting a relieving letter in the future due to the said reason. If they are ready, then there is no issue, or you can build a good relationship with the existing organization and try to convince them to provide a relieving letter.

So, it's always better to follow the terms and conditions mentioned in your employment letter to avoid getting into any controversy and to get a clean chit on the same.

Regards,
Tushar Swar

From India, Mumbai
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Hi Kalyan and Tushar Notice served. Manager verbally agreed on 60 days and rolled back and written 80 days. Next employer was informed for 60 days. Now its a sandwich situation. Please guide futher.
From India, Ahmedabad
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