Upgrad LLM

change in notice period


Hi,

I have a query. I would be grateful for your reply.

Can a company change it's notice period from 2 months to 3 months without employees' consent?  Also, can they back date the date of its applicability to employees without writing to them about it in advance?

The relevant terms of the contrac are:

1. In case of termination / resignation of services, either party will be required to give a two month notice in writing.

2. You are required to sign a copy of this letter confirming the acceptance and compliance of the terms of offer and policies existing and modified from time to time. 

Regards,

Manish

 
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Advocate

Dear Mr. Manish,

By agreeing to the innocuously looking clause 2 above mentioned by you, you would have unwittingly agreed to the change in notice period if any, as a policy change effected by the Management  as well. 

Once agreement on such a clause is agreed upon, then the Management need not seek individual's consent for such a change.


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LEGAL COUNSEL

I have different point of view. No policy of the company can be modified withtout the consent of the employees, especially when a clause is modified to the adverse interest of the employee. However, in the current scenario where most of the employees are engaged in non-workmen cadre and bound by a contract, without representative capacity, one is left with no option but to give consent to such modifications!

Vasudevan


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ADVOCATE

I agree with Shri Vasudevan's view.

Renish Rao


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Hi,

 

Thanks for your reply.  I have a further question on this.  By getting the employees to sign against clause No 2 can the company reserve the right to modify policies in whatever fashion they like. say

1. All employees drawing over Rs 10 Lacs per annum should not be eligible for double digit hike i.e. above 10 per cent hike per year due to high cost burden on the company.

2. Any employee not serving the full notice period would be required to pay the amount 2 times the notice period for settlement i.e. six times of the per moth gross salary

Will such policy change, which are grossly not in the interest of employees, not be held unfair in the court of law?

Kind Regards,

Manish

 
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Hi,

Thanks for your reply.

You have stated that " No policy of the company can be modified withtout the consent of the employees, especially when a clause is modified to the adverse interest of the employee." Can you please advise under what existing law can we challenge this as unfair, especially when the employe belongs to managerial cadre.

Regards,

Manish

 
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LEGAL COUNSEL

It is difficult for an employee of a managerial cadre to challenge the policy in a labour forum and he has to file a suit. However whether an employee is a Manager is not merely determined by his designation and various tests are applied for the court , when it is challenged. As I have earlier said, the remedies available in practice for managerial cadre is very limited. Even if a Managerial cadre person succeeds in an issue, it would be open

for the management to tackle him on many other spheres like performance, etc.

 
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Hi, all, I have an one question. In my company I was in probation period and my probation period will be end on 13 March 2019 On Monday date 17 Dec Payroll HR send one email stated that all employees will be permanent and noticed period for all will be 90 days and this will apply from 15 Dec. In back date. I have got offer from outside and I book flight in January because I was on probation Nd for probation 14 days was noticed period. Right not they are saying to served 90 days of notice period. I have resign the company. What should I do now. ? Please suggest
 
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