Ours is a Pvt Ltd company, a garment manufacturing company which has obtained license under the factories act 1948. The terms and conditions mentioned in appointment letter is
- 06 months probation period.
- Two months notice period. (Earlier it was one, but now it has been revised to two months).
Out of various clauses mentioned in the appointment letter the undermentioned is also included:-
“ Your services will be governed by the terms and conditions applicable to the employees in the management cadre and you agree that you have read the same and understood it. You have agreed that you are not a workman as defined under Sec 2 ( s ) of I. D. Act, 1947 and / or sec. 3 ( 5 ) of MRTU & PULP ACT, 1972.”
The clause of discontinuing the service is as under:-
‘A notice of two calendar months is required by either side for discontinuing the service or payment of two months salary in lieu of Notice. No reason may be assigned for such termination of service.”
The appointment letter is being drafted by the company advocate.
My query is with regard to Schedule -1 of Model standing orders in respect of Industrial establishment wherein the following is clearly mentioned:-
2(b) A permanent workmen is a workman who has been engaged on a permanent basis and includes any person who has satisfactory completed a probationary period of three months in the same or another occupation in industrial establishment……………
13. Termination of employment : for terminating employment of a permanent workmen, notice in writing shall be given either by the employer o the workmen – one month’s notice in the case of monthly-rated workmen and two weeks notice in the case of other workmen one month’s or two week’s pay, as the case may be , may be paid in lieu of notice.
My question is:-
- Is the six months’ probation period legal??
- With regard to definition of workmen, is a manager ask for one month’s notice period with above reference in the model standing orders??
- Please let me know the rules about the buying out of notice period
- Position of old employees who have been issued with appointment letter with only one month notice period?
The company has not introduced the company manual in writing and most of the rules are floating on verbal concurrence of the MD.