Yes, the employee notice period is legal in India, and no matter how unfair it might sound, that’s how it is. This is mainly to provide surety to both, the employee as well as the employer.
What is a Notice Period?
Just to be clear from the very start, you see, a notice period means the time between the day an employee informs the company about his/her intention to leave and the last working day at the company. All in all, it is basically a kind of formal information that shows the employer that the employee is leaving. Giving notice means the employee is giving the employer time to find a replacement and ensure a smooth transition of the tasks, you know?
In most cases, the length of the notice period is specifically described in the employment contract, which the employee signed at the very beginning of his/her employment. Thus this period may also be applied when an employer terminates the contract. Generally, both the employee and the employer need to comply with the notice period rules so that there are no disputes down the line.
What’s The Legal Framework Governing Notice Periods in India?
The main law regarding this notice period thing is the Indian Contract Act of 1872, which renders notice periods a part of the employment agreements enforceable by law. One more law of significance is the Industrial Employment (Standing Orders) Act of 1946, which gives discipline for the termination of employees or the period within which they can resign. Moreover, the Shops and Establishment Act, which differs from state to state and applies only to employees working in shops and offices, is a kinda another variant of this law.
So, Is Serving a Notice Period Mandatory in India?
Yes, it is pretty much a must to give the notice period if it is written in the contract. Just know that after you agree to the terms of the contract by signing it, you also accept to do the tasks included in it, such as the notice period. If you don’t finish this period, it’s considered a contract infringement thus your employer can inflict actions such as paying you late or taking legal action against you. On the other hand though, if an employer dismisses an employee without any notice, the employee may also take legal action against the employer, so it goes both ways.
What Are Some Common Legal Disputes Regarding Notice Periods?
The notice period can at times lead to disputes and conflicts of interest, that’s for sure. Usually, one such situation occurs when an employee leaves a company without serving the full notice period. In such instances, employers might deduct their salary for the days worked.
The other point of contention is when employers do not honor the notice period while terminating the employment of their employees. And that’s why laws such as the Industrial Disputes Act of 1947 act as a safeguard for employees against wrongful termination without due notice.
