Hi all,
I have been working with an MNC in Mumbai for the last 4 months. In the appointment letter issued to me, the clause regarding the resignation/termination of an employee stated that a 30-day notice period is required from either side.
Now, the company has proposed to reissue the appointment letter with similar terms of service, except for the resignation/termination clause. The company is suggesting a 60-day notice period in the case of termination/resignation of an employee.
My question is, can the company legally make this change? If so, do employees have any recourse in this situation?
Thanks,
Armaan
From India, Mumbai
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5I have been working with an MNC in Mumbai for the last 4 months. In the appointment letter issued to me, the clause regarding the resignation/termination of an employee stated that a 30-day notice period is required from either side.
Now, the company has proposed to reissue the appointment letter with similar terms of service, except for the resignation/termination clause. The company is suggesting a 60-day notice period in the case of termination/resignation of an employee.
My question is, can the company legally make this change? If so, do employees have any recourse in this situation?
Thanks,
Armaan
From India, Mumbai
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Dear Armaan,
The company can introduce any term that is not unreasonable. Most companies today have a three-month notice period. In that context, 60 days cannot be termed as unreasonable.
The tragedy lies in the fact that companies that stipulate a 60 or 90-day notice period for leaving do not allow new joiners the same number of days to start. This is where the controversy arises. If a company, willing to wait for 60 to 90 days for a candidate, the candidate would likely stay in their current employment for that duration. Otherwise, they would be forced to break the rule.
The question that arises is - what is the remedy?
Usually, companies offer "Salary in lieu of notice period." If that is provided, one can use it to leave early. If not, no one can prevent you from leaving the company as per your fundamental rights granted by the Constitution of India. The only consequence may be facing a legal battle.
Let me know if more details are required.
Dattatri
Company Secretary
From India, Bangalore
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The company can introduce any term that is not unreasonable. Most companies today have a three-month notice period. In that context, 60 days cannot be termed as unreasonable.
The tragedy lies in the fact that companies that stipulate a 60 or 90-day notice period for leaving do not allow new joiners the same number of days to start. This is where the controversy arises. If a company, willing to wait for 60 to 90 days for a candidate, the candidate would likely stay in their current employment for that duration. Otherwise, they would be forced to break the rule.
The question that arises is - what is the remedy?
Usually, companies offer "Salary in lieu of notice period." If that is provided, one can use it to leave early. If not, no one can prevent you from leaving the company as per your fundamental rights granted by the Constitution of India. The only consequence may be facing a legal battle.
Let me know if more details are required.
Dattatri
Company Secretary
From India, Bangalore
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Hi Dattatri/Yeshulaparkash Thanks for ur suugestions..... But personally I find it unreasonable and amounts the misleading its employyes at the first step of their employment. Thanks Armaan
From India, Mumbai
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From India, Mumbai
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this amounts to "change in service conditions" and needs to be proceeded after due diligence measures hv been applied ie giving a notice to employees highlighting such a change in norms..
From India, Delhi
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From India, Delhi
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yes company can do that , it is sole discretion of the company to alter the condition of the Appointment letter. Regards Johnson
From India, Indore
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From India, Indore
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Appointment Letter to an Employee for fixed period.doc