Notice period
V.PAVAN KUMAR
(Querist) 06 October 2009
This query is : Resolved
Respected Sir,
Our company is issuing appointment letters with a clause that the employee should submit his resignation with 6 months notice period if he wants to resign during the crucial business season (i.e. between Feb.-July.) However, in the normal course, he can submit his paper with 3 months notice period. Will it be valid in the court of law.
In case the employee leaves the company without complianing the said clause, can we take legal action and recover money for the un-noticed period.
I seek your valuable guidance in the matter.
Regards,
PAVAN KUMAR V
A V Vishal
(Expert) 06 October 2009
As far as the first para is concerned it is a contract between the employee and the employer and there is acceptance so there should be no problem. However, the query in the second paragraph has become contingent these days, in sense the employer can resort to legal recourse in case of non performance but it leads to long legal battle and resources, money and time.
Manish Singh
(Expert) 06 October 2009
I agree with the opinion but still the clause forcing an employee to gve six months notice may be termed arbitrary and unreasonable restriction in profession. hence it may successfully be challenged.
for the second query, it must be mentioned herein that u shall only be compensated at the descretion of the civil court (which shall take ino consideration the loss you suffered alog with the stand of the employee) as and per the Contract Act.
n.k.sarin
(Expert) 06 October 2009
I agree with Mr.vishal.
Bhumik Dave
(Expert) 07 October 2009
Well described by Mr. Vishal
Adinath@Avinash Patil
(Expert) 07 October 2009
If Unreasonable Conditions are imposed in appointment letter are no ground for legally enfoceable agreement hence said agreement is not contract.you can't recover money for un noticed period.
H. S. Thukral
(Expert) 07 October 2009
Termination of contract by a clause is equally applicable to all parties to the contract. The employer shall also have to give notice of six months if he wants to terminate the contract.
If the contract is valid then its illegal termination shall entitle the other party for damages.
Manish Singh
(Expert) 07 October 2009
but sir (Mr. thukral) there are case laws wherein notice fr six months have been declared unreasonable.. ill try to get those case laws fr clearer picture.
H. S. Thukral
(Expert) 09 October 2009
Dear Manish
Please do post it if there is a ruling that the clause in contract of employment where either party has to give a notice of six months before the contract can be brought to an end is illegal. In my opinion and I have seen certain appointments particularly directors of the company who have to give a notice of six months before they can voluntary resign. Pl. do enlighten me. Thanks
