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Which law makes notice period mandatory

(Querist) 27 June 2013 This query is : Resolved 
For Managerial Staff ---
1. Is Notice Period mandatory? Under which law? What is the mandated period?
2. Is the Company bound by law to pay for the notice period?


Case in poin3t--
1.The Company has three months notice period.
2. The employee resigns and is willing to serve full notice period
3. But Management asks the person to exit within a day.
The Company also refuses to give any payment for the notice period.

4. On giving the resignation can the Company decide the last work date as & when they wish? Is this legal?

The Appointment letter states ....

resignation once submitted and received by the Company, cannot be withdrawn by you except with the written consent of the Management and the last work date will be at the discretion of the Management.





Kumar Doab (Expert) 27 June 2013



Supreme Court of India

Nand Keshwar Prasad vs Indian Farmers Fertilizers ... on 1 April, 1998

(http://www.indiankanoon.org/doc/1452145/)


11. After giving our careful consideration to the facts and circumstances of the case, it appears to us that the law is well settled by this Court in a number of decisions that unless controlled by condition of service or the statutory provisions, the retirement mentioned in the letter of resignation must take effect from the date mentioned therein and such date cannot be advanced by accepting the resignation from an earlier date when the employee concerned did not intend to retire from such earlier date. It has also been held by this Court that it is open to the employee concerned to withdraw letter of resignation before the same becomes effective.


Valuable advice of learned experts is sought.
Raj Kumar Makkad (Expert) 01 July 2013
If you clearly go through the service rules or appointment letter, you shall find it clearly that an agreement for mandatory notice period is there and accordingly both parties have to obey it failing which either of the parties (affected) may resort to legal recourse.

If the employee is ready to complete his notice period but the company wants to shunt him out on the same day then the company shall have to pay notice period.


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