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Abhishek Prasad (adasd)     30 December 2014

Notice period buyout

Dear team,

In my current company i have a 2 months notice period and i have requested my current employer to give me a buyout option of 1 months and i am ready to service 1 month. But they are citing below mentioned phrase in the terms of employment 

"The Notice Period from the employee is essential for the company to ensure timely and smooth handover of existing responsibilities to another employee. However, under special circumstances the company MAY TAKE exception and either waive  off the entire notice period amount or any short notice period. Notice period recovery/payable would be considered at the rate of BASIC"

So as per these my current HOD has denied me any relieving letter if I leave withing 30 days and is forcing me to stay back for 60 days. The current offer i have i have requested them to wait for 60 days but they are also not agreeing to the same. 

What is the legal course i have, can i leave the current organization in 30 days an join the new company and request them to offset my short notice period with the 51 unused PL i have?

Also , can they withheld my gratuity or PF in any manner?

Regards



Learning

 2 Replies

Abhishek Prasad (adasd)     30 December 2014

The new company has agreed to make me join without relieving letter. Please let me know whether it would be prudent for me to leave in 30 days and join and what are the legal steps i should take to get relieving or Fnf from current company?

Kumar Doab (FIN)     02 January 2015

The condition speaks about waiver of notice period and pay!

Since the appointment letter is drafted by employer employer can insert anything.

However right of waiver of notice period and notice pay is enjoyed by employer if employee has issued notice of resignation..........

 

The condition does not in explicit manner states that employee shall neccessarily have to serve the notice period...................................it only speaks about right of employer to waive of the notice period/pay............

 

Hence you can affirm (in writing under proper acknowledgment) to tender the notice pay as per correct noticve period applicable to you and request to adjust in the FnF statement and   supply the original to you for verification and acceptance..............and do not forget to mention that NO tasks are pending at your end and routine duties be assigned that can be completed on daily basis within and upto last date in office after expiry of notice period of .........days tendered by you i.e. dated............and to whom you should handover the charge within last date in office i.e. dated..................... 

You might be covered by the definition of 'Workman' as in ID Act/'Employee' as in Shops and Commercial establishments Act!


You may avoid seeking a confirmation on it from personnel in Line Management /HR of your company and approach an able Labor Law Consultant/Service Matters Lawyer........................only. Your counsel may ask you a set of structured questions and may opine that you shall be covered.

Your company might be covered by (name of the state) Shops and Commercial Establishments Act that was enacted to govern the service conditions of employee's working in establishments covered by this Act............
Notice Period/pay is part of service conditions and is very well stated in this Act and is as per length of service and is max. upto 30 days.........................No Inspector appointed under this Act/Labor Inspector/Labor Authority can and shall accept notice period and rate of notice pay beyond the provisions of this Act. 

Standing Orders (certified/model) might also be  applicable to the establishment and you. If standing Orders are not certified Model Standing Orders shall apply.
Some states like Kerala has issued notification covering all commercial establishments (including software companies) by standing orders, states like Maharashtra has laid down vide provisions of Bombay Shops and Commercial Establishments Act that any establishment having 50 or more employees shall be covered by standing Orders....................

As Model Standing Orders:Sec13,16: NoticePeriod during probation period is NIL and after confirmation is max.30 days.............and service certificate has to be issued to all employees on last day in office.................................and employer personally is held responsible for faithful observance of standing orders.....

No Inspector appointed under this Act/Labor Inspector/Labor Authority can and shall accept notice period and rate of notice pay beyond the provisions of the standing orders (Certified/Model) and (name of the state) Shops and Commercial Establishments Act.........................as these being Instrument of Law/statue/Act shall prevail upon any private policy/rule that employer has drafted and crafted for employees.................e.g. offer letter/appointment letter/service agreement/contract of employment/HR policy/Service Rules and regulations/FnF policy etc............


Hence any clause /service condition that is violation of these enactments shall not survive.....

Thus the offer letter issued to you laying notice period of 60 days may not be even worth the piece of paper on which it is written..........................

 

 

You have quoted only an extract.......It shall be appropriate to show all docs on record to an able Labor Law consultant/service lawyer in person....and proceed under expert advice of your lawyer..


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