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K R Arun Raaj (Designation)     03 October 2011

Notice period break

Hi ,

In my offer letter the notice period is stated as below

"If you want to leave/resign from the services of the company you will have to serve a 30 day notice of your intention to do so, failing which you will have to pay one months salary in lieu thereof, either of these is by the discretion of the management"

5 month ago, we got a mail from the HR stating that the notice period is extended for 3 months and there is no buyout option also.. We have not signed any where for this. Also they gave us a salary hike. Even in the salary certifiaate there was no mention of the notice period where we have signed anything.

Now my question is

1) I want to walk out of the company . I have served one moth of notice period. Do i need to say for other 2 months.

2) If i am leaving in one month, should the HR team hand over my experience certifcate to me?

Kindly let us know if there are any laws for this . I dont want my company to sue me to serve 3 months of notice period.


 3 Replies

Kumar Doab (FIN)     03 October 2011

As per your post:

1. No.

2. Yes

Hope in your appointment letter it is not stated that any term and condition informed to you from time to time shall be applicable and acceptable to you.

The statement of the company "either of these is by the discretion of the management" implies:

-Company can accept or reject notice pay in lieu of notice period. (Employee can at max be asked to tender notice pay.)

-Company can accept or reject notice period. (If the employee has written effective date of resignation in the notice of resignation, resignation can be accepted from effective date of resignation. If the company accepts before it can be termed illegal.Employee if desires so can withdraw the notice before effective date of resignation.)

Kindly complete all tasks on hand, and either obtain comments in this respect in  writing from your reporting authority or superiors, or submit a written communication under acknowledgment with a copy to you that you have completed all tasks assignments and nothing is pending/due at your end, and mention that charge should be taken from you on effective date of resignation, and to whom you should submit the company property and the designated employee may be asked to supply receipt on the spot.

N.J. MISHRA (Legal Manager)     04 October 2011

One of the essential of the valid contract is "free consent" which is defined under sec 13 of Indian Contract Act.

According to sec 13 of Indian Contract Act, when two or more person said to be consent, when they are agree upon the same thing in the same sense. kinldy recheck your joining paper, whether any clause says that you agree to perform on such terms which the company may implement in mere future, if not then you can serve one month notice.

Venkataraman (Manager - Labour & Compliance)     04 October 2011

Is there any standing order in your company and if it is specified / defined in the termination clause such that based on business requirement / management policy decision and if it is extended the probation period clause across the company and is valid for all whether you give your written consent or not.

If mass mail sent to everyone about the change in termination / separation clause, still it is valid since notice period definition is the management decision and it is valid.

Contract law will not be applicable since it is coming under Shops and Establishment Act and Factories Act will be considered wherever the shops and establishment act does not cover certain section of employment conditions etc.

Suggest to speak to your superior and HR team to have amicable settlement, you may require their support since your new employer may go for reference check and this should be hinderance for your new employment and your future career.


Venkat, Senior HR personnel

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