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Employee Notice Period
5 months ago
I have a notice period of 3 months with my current employer, however, I want to serve only 2 months and buy out 1 month so that I can join my new employer. The notice period terms in my contract are as follows
" Notice Period: The services can be terminated with 2 (Two) Months' notice or salary in lieu
thereof, from either side during probation and 3 (Three) Months on confirmation. If you fail
to serve the notice or pay salary in lieu thereof, the company reserves the right to take
necessary legal recourse.
Services of the employee on probation may be terminated without any prior notice on
grounds of non-performance, gross misconduct, or a negative background check. Decision of
the management is final in this matter."
What should I do?? Will there be any action taken if not served 3 months?? How can i tackle this situation with my HR Team??
A.Dear Client,
In this situation, it's important to communicate transparently with your HR team. Review your employment contract thoroughly to ensure you understand the terms correctly. If you wish to serve a notice period of 2 months and buy out the third month, approach your HR department with a well-reasoned request. Clearly articulate the reasons for your decision, such as the opportunity with your new employer and your willingness to fulfill financial obligations by buying out the third month. Be open to negotiation and find a solution that benefits both parties. Most companies prefer a collaborative approach over legal recourse. However, it's crucial to be aware that if you don't serve the full three months and your company insists on the contractual notice period, they may have the right to take legal action. Strive for open communication, honesty, and a willingness to find a compromise during discussions with your HR team.
In this situation, it's important to communicate transparently with your HR team. Review your employment contract thoroughly to ensure you understand the terms correctly. If you wish to serve a notice period of 2 months and buy out the third month, approach your HR department with a well-reasoned request. Clearly articulate the reasons for your decision, such as the opportunity with your new employer and your willingness to fulfill financial obligations by buying out the third month. Be open to negotiation and find a solution that benefits both parties. Most companies prefer a collaborative approach over legal recourse. However, it's crucial to be aware that if you don't serve the full three months and your company insists on the contractual notice period, they may have the right to take legal action. Strive for open communication, honesty, and a willingness to find a compromise during discussions with your HR team.
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A.Dear Client,
In this context, the relevant portion of the notice period as stated in your appointment letter and applicable in your case is reproduced for brevity and better understanding hereunder " Notice Period: The services can be terminated with 2 (Two) Months' notice or salary in lieu thereof, from either side during probation and 3 (Three) Months on confirmation. If you fail to serve the notice or pay salary in lieu thereof, the company reserves the right to take necessary legal recourse." it means that the employer has given you both options to quit your job, either to serve the notice period in terms of the contract or pay the salary of the notice period if you failed to serve which is typically termed as buy back policy. So, when you are able to serve two-month notice periods instead of the required 3 months, then you have to pay back one month's salary to your employer to quit your service. So, no action is warranted if you pay back one month's salary after serving two months' notice period. Accordingly, on cessation of employment, the employer is duty-bound to release your relieving letter and F & F Settlement dues. As per the mandate of Section 27 of the Indian Contract Act, 872, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, if you face any kind of arbitrary action on the part of the management, reach out to the office of the concerned Labour Commissioner to file a complaint against the management for alleged unfair labour practice for redressal of your grievance.
In this context, the relevant portion of the notice period as stated in your appointment letter and applicable in your case is reproduced for brevity and better understanding hereunder " Notice Period: The services can be terminated with 2 (Two) Months' notice or salary in lieu thereof, from either side during probation and 3 (Three) Months on confirmation. If you fail to serve the notice or pay salary in lieu thereof, the company reserves the right to take necessary legal recourse." it means that the employer has given you both options to quit your job, either to serve the notice period in terms of the contract or pay the salary of the notice period if you failed to serve which is typically termed as buy back policy. So, when you are able to serve two-month notice periods instead of the required 3 months, then you have to pay back one month's salary to your employer to quit your service. So, no action is warranted if you pay back one month's salary after serving two months' notice period. Accordingly, on cessation of employment, the employer is duty-bound to release your relieving letter and F & F Settlement dues. As per the mandate of Section 27 of the Indian Contract Act, 872, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. Further, Section 73 of the Act makes provision for unliquidated damages (not stipulated in a contract), Section 74 deals with liquidated damages (stipulated in a contract) and no compensation is attracted for mere breach of contract u/s.73. 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, if you face any kind of arbitrary action on the part of the management, reach out to the office of the concerned Labour Commissioner to file a complaint against the management for alleged unfair labour practice for redressal of your grievance.
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