Dear All
Appointment letter used to be a binding legal contract between an employer and an employee which specifies the main terms of the contract including notice period.
I want to confirm that can a company unilaterly increase the notice period at its own by sending a circular to all its employees.
And if yes then what is the significance ofsuch legal contract amonmg the two called appointment letter.
The real problem is that my friend has joined one company three years back and the appointment letter says that the notice period is of 30 days either side or payment in liew thereof. However in April 2009 , their HR send a mail to all employees stating that the notice period has been increased to 90 days either side or payment in liew thereof.
My friend wants to resign with a 30 days ntoice and his company is asking him to pay salary for the shortfall period of 60 days which ihe is refusing to pay.
Please tell who is correct and what is to be done in the case.
Regards
Bediraj
Appointment letter used to be a binding legal contract between an employer and an employee which specifies the main terms of the contract including notice period.
I want to confirm that can a company unilaterly increase the notice period at its own by sending a circular to all its employees.
And if yes then what is the significance ofsuch legal contract amonmg the two called appointment letter.
The real problem is that my friend has joined one company three years back and the appointment letter says that the notice period is of 30 days either side or payment in liew thereof. However in April 2009 , their HR send a mail to all employees stating that the notice period has been increased to 90 days either side or payment in liew thereof.
My friend wants to resign with a 30 days ntoice and his company is asking him to pay salary for the shortfall period of 60 days which ihe is refusing to pay.
Please tell who is correct and what is to be done in the case.
Regards
Bediraj
23
Tell your friend to invite termination. He has to ignore command & create problem in tricky way. Regards, Arjun
Bediraj,
I do not know which state you belong to, but as per Bombay Shops and Establishment Act, the notice period can not be more than one month which is sufficient. But as our legal machinery responsible for this is having loopholes and no action is been taken unless smebody complains about it which again a lengthy process.
Ask your friend to leave the organisation on good terms.
ANjali
From India, Mumbai
I do not know which state you belong to, but as per Bombay Shops and Establishment Act, the notice period can not be more than one month which is sufficient. But as our legal machinery responsible for this is having loopholes and no action is been taken unless smebody complains about it which again a lengthy process.
Ask your friend to leave the organisation on good terms.
ANjali
From India, Mumbai
Dear Bediraj,
Yes, a Company can increase the Notice Period by way of Circular for Management Cadre Employees.
If any employee doesnot agree to this increase, he may raise the same in writing and whatever is agreed between the Company and the particular employee stand valid. This is as per Service Contract, but is do not take place in the practical world.
The next point is when an employee keeps on working even after receiving the circular and do not raise any objection then it is deemed that the employee has accepted the same.
Regards,
SC
From India, Thane
Yes, a Company can increase the Notice Period by way of Circular for Management Cadre Employees.
If any employee doesnot agree to this increase, he may raise the same in writing and whatever is agreed between the Company and the particular employee stand valid. This is as per Service Contract, but is do not take place in the practical world.
The next point is when an employee keeps on working even after receiving the circular and do not raise any objection then it is deemed that the employee has accepted the same.
Regards,
SC
From India, Thane
Did your friend singed or accepted the circular regarding the increase of notice period?
Please ask to your friend that how he got information on 90 days notice period.
If he/she did't sign then one month notice period is sufficient,otherwise company have legal right to hold salary or other wages or taken any action against employee.
Best Regards
Sajid
From India, Delhi
Please ask to your friend that how he got information on 90 days notice period.
If he/she did't sign then one month notice period is sufficient,otherwise company have legal right to hold salary or other wages or taken any action against employee.
Best Regards
Sajid
From India, Delhi
QUESTION--My friend joined one company three years back. The appointment letter said that the notice period is of 30 days either side or payment in lieu thereof. However,six months ago, in April 2009 , their HR send a mail to all employees stating that the notice period has been increased to 90 days either side or payment in liew thereof.
My friend wants to resign with a 30 days ntoice and his company is asking him to pay salary for the shortfall period of 60 days which ihe is refusing to pay.
Please tell who is correct and what is to be done in the case.
ANSWER—The terms set out in the appointment letter constitute a binding contract between the employee and the employer. The terms of contract can be modified with mutual consent. They were proposed to be modified by the company in April 2009. Your friend agreed to such proposal by accepting / not protesting. He has continued in service for more than 6 months afterwards. He cannot now turn back and say that the change is not binding. The company is correct.
Legally,it is open for your friend to contest the company’s decision in a court. He does not have bright chances of succeeding. Even if he succeeds, the company will certainly go in appeal to higher court. Your friend will not gain anything by litigation.
-- M C Gupta
MD (Medicine), LL.M.
Ex-Professor
Practising advocate
6 January 2010
================================================== =
From United States, Sunnyvale
My friend wants to resign with a 30 days ntoice and his company is asking him to pay salary for the shortfall period of 60 days which ihe is refusing to pay.
Please tell who is correct and what is to be done in the case.
ANSWER—The terms set out in the appointment letter constitute a binding contract between the employee and the employer. The terms of contract can be modified with mutual consent. They were proposed to be modified by the company in April 2009. Your friend agreed to such proposal by accepting / not protesting. He has continued in service for more than 6 months afterwards. He cannot now turn back and say that the change is not binding. The company is correct.
Legally,it is open for your friend to contest the company’s decision in a court. He does not have bright chances of succeeding. Even if he succeeds, the company will certainly go in appeal to higher court. Your friend will not gain anything by litigation.
-- M C Gupta
MD (Medicine), LL.M.
Ex-Professor
Practising advocate
6 January 2010
================================================== =
From United States, Sunnyvale
Thank you all for your opinion. The case belongs to Delhi.
He has resigned yesterday with protest. The intimation was sent through email to all the employees of the company ( Group Id) and he is saying that somehow he has not received that email communication but heard the same from other collegaues.
Lets see what happen.
Again Thank you all
Regds
Bediraj
He has resigned yesterday with protest. The intimation was sent through email to all the employees of the company ( Group Id) and he is saying that somehow he has not received that email communication but heard the same from other collegaues.
Lets see what happen.
Again Thank you all
Regds
Bediraj
Hi,
As per answer given by mr.Gupta is correct,on actual facts, this is not a matter of ID Act, hence the agreement between employee and employer could be any thing, once the employee agree to work on the agreed contract will not be forefitted in the court. So employer can re modify the same by way of changing/modifying their policy.
Regards
From India, Delhi
As per answer given by mr.Gupta is correct,on actual facts, this is not a matter of ID Act, hence the agreement between employee and employer could be any thing, once the employee agree to work on the agreed contract will not be forefitted in the court. So employer can re modify the same by way of changing/modifying their policy.
Regards
From India, Delhi
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