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brijendrasingh   16 July 2015

Notice period policy

As per our company policies a notice of two calendar months is required by either side for discontinuing the service or payment of two months salary in lieu of Notice. This has been recently changed and earlier it was one month notice period. Our salary structure is divided in to four parts namely 1. Basic. 2. House Rent Allowances. 3. Medical Allowances and 4. Other Allowances. Now my question is:-

1. What would be the policy for old employees who have been earlier issued with an appointment letter of only one months notice period clause in it?

2. If the employees are willing to buy the notice period, will it be a full month’s gross salary or only pay without allowances.?



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 1 Replies

Kumar Doab (FIN)     16 July 2015

The notice period/pay/rate of notice pay etc is part of service conditions and enactments applicable to the establishment/employer/employe shall govern the service conditions and not any private agreement/contract/rule/policy drafted by employer and signed with employee e.g. appointment letter/contract of employment/HR policy/Exit Policy/FnF policy/Service Rules and regulations etc...........................

 

 

Thus notice period and notice pay and its rate shall be governed by enactments e.g. Factory Act, (Name of the State) Shops and Commercial Establishments Act, Standing Orders (Certified/Model) etc………..e.g.


As per (Name of the State) Shops and Commercial Establishments Act, notice period shall be as per length of service and can be either NIL or say 15 days and max.30 days……………

 


As per Model Standing Orders: notice period shall be NIL before confirmation and 30 days after confirmation. Standing Orders are certified on the lines of Model Standing Orders.

 

Thus you may first determine the enactment that is applicable to the employee/establishment and you will find the right answer in the enactment.


As an HR person don’t implement the wrong policy…………….The HR persons should always remain unbiased and properly informed of their domain and limits................

 

Majority of the employees shall be covered by the def. of 'Employee' as in the (Name of the State) Shops and Commercial Establishments Act, 'Workman' as in ID Act as per their nature of duties, despite the fancy/decorated designations given by employer.

 

The HR personnel should also take care that T&C in appointment letter are equitable or these can easliy be termed arbitrary.

 

 


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