Dear Madam/Sirs,
Question Regarding Notice Period and Retention Bonus
I worked with a private limited company in the accounts department. In the second year of my service, management increased my notice period from one month to two, and later it was increased to three months. I want to ask if there is any basis on which the notice period is computed and how I can deal with this.
Apart from this, the company has incorporated a retention bonus in my salary, which will be remitted after the completion of the financial year.
I want to know how legal all of this is and if there is any basis for deciding the notice period. What should I expect from the company in return if I accept the same?
Please do the needful and guide me further.
Regards,
From India, Pune
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Question Regarding Notice Period and Retention Bonus
I worked with a private limited company in the accounts department. In the second year of my service, management increased my notice period from one month to two, and later it was increased to three months. I want to ask if there is any basis on which the notice period is computed and how I can deal with this.
Apart from this, the company has incorporated a retention bonus in my salary, which will be remitted after the completion of the financial year.
I want to know how legal all of this is and if there is any basis for deciding the notice period. What should I expect from the company in return if I accept the same?
Please do the needful and guide me further.
Regards,
From India, Pune
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The notice period is decided keeping in mind the nature of the job the person is doing and also the seniority of the person. If the company is also giving you a 3-month notice or pay when they terminate or ask you to leave, then they are asking you for 3 months' notice or pay in lieu of which is absolutely legal.
Secondly, there are no issues with the company putting in a retention bonus. This is to ensure that employees do not leave the organization abruptly. The retention bonus is also paid only if the person is on the payroll when the retention bonus is paid out, which again is legal. These clauses are made to ensure that employees simply do not abscond without following the proper procedure.
Regards,
Ashutosh Thakre
From India, Mumbai
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274Secondly, there are no issues with the company putting in a retention bonus. This is to ensure that employees do not leave the organization abruptly. The retention bonus is also paid only if the person is on the payroll when the retention bonus is paid out, which again is legal. These clauses are made to ensure that employees simply do not abscond without following the proper procedure.
Regards,
Ashutosh Thakre
From India, Mumbai
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Legal Notice for Breach of Notice Period .docx
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