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SomePerson (PM)     14 November 2013

Notice period

Sirs,


I work for a software services company (Maharashtra). The company has recently increased the employee notice period from the previous 1 month to a massive 3 months. Is this legal? I understand that labour laws say that only one month notice period is required. Please clarify.

-KT



Learning

 3 Replies

BAALASUBRAMANNYAMM (Advocate)     14 November 2013

For emloyees under probation-
1.As per standing orders there is nothing mentioned regarding notice period for probationars.
2.But the notice period for probationars can't be extended beyond 1 year.

For confirmed employees u can devise your own policy regrding notice period.
1. The notice period can be different for different grades of emplyees depending upon their role & importance.
2. It can vary from 1 month to 3 months.


SomePerson (PM)     14 November 2013

Thanks for the information, Sirs. You were very helpful.

Kumar Doab (FIN)     14 November 2013

 

The purpose of this post is to gain from the discussion in this interesting thread.

 

 

The purpose is not to argue or debate.

 

>> Notice period during probation period and after confirmation of employment is very well explained in standing orders.

It is NIL during probation and 1 month after confirmation of employment as stated in Model Standing Orders.

 

The employer and establishment to which standing orders are applicable are liable to ensure faithful observance of standing orders and can b penalized for violations.

 

13. Termination of employment: .--(1) For terminating employment of a permanent workmen, notice in writing shall be given either by the employer or 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.

 

 (2)           No temporary workman whether monthly-rated, weekly-rated or piece-rated and NO Probationer………………..shall be entitled to any notice or  pay in lieu thereof if his services are terminated…………

 

17.           Liability of 17[employer].--The [1][employer] of the establishment shall personally be held responsible for the proper and faithful observance of the standing orders.

 

 

If the establishment resorts to termination it has to issue you the mandatory notice.

If the employer resorts to violation of standing orders that in details describes ‘Termination’ it can be penalized for having violated the standing orders.

 

 

>> The probation period, length of probation period and deemed confirmation has been advised by Supreme Court of India by judgments including by constitutional bench for service jurisprudence.

 

 

 

>> It is felt that:

 

---- Neither Agreement nor and appointment letter can override the standing orders.

 

----Standing orders and rules that are statutory and have statutory force.

-----Once the standing orders framed by employer are certified they have the force of law. As against them conditions of service contained in appointment letter or contract of employment do not have statutory force. 

 

Once there is a conflict between the provision of law or an instrument having force of law and the contract entered into between the parties, the former will prevail.

 

 

>> Supreme Court of

India

Western India Match Company Ltd vs Workmen

 

 

HELD :

(2) Since, according to the Standing Order, a workman s all not be kept on probation for more than 2 months, the letter of appointment (or special agreement) is inconsistent with the Standing Order to the extent of the additional 4 months' probation. [437E-G]

(3) The inconsistent part of the agreement is ineffective and unenforceable. [439F]

 

 

 

>>

---Notice period is also stated in Shops and Commercial Establishments Act of the State.

IT/ITeS companies in Maharashtra are covered by Bombay Shops and Commercial Establishments Act, which is so employee friendly.

 

бб.Notice    of  termination  of  service:

Notice period for period of service up to 3 month: NIL.

 

Notice period for period of service > 3 month <1Y: 14 days

 

Notice period for period of service >1Y: 1 month (ONLY)

 

There are threads initiated by the employees that indicate that Labor Commissioner (also as the Chief Inspector under Shops and Commercial Establishments Act) advised that the notice period stated in the Act shall prevail e.g;

 

https://www.lawyersclubindia.com/forum/Employer-not-relieving-employee-contt-89308.asp#.UkP5C9KAqWM

 

---- Bombay Shops and Commercial Establishments Act is so employee friendly.

 

S.38-B  -  before  its  amendment  in  1986  and  Industrial  Employment (Standing Orders) Act, 1946 - Applicability even if employees are less than 100.The question decided is that the provisions of Industrial Employment (Standing Orders)  Act,  1946  in  its  application  to  the  State  of  Maharashtra  and  the  Rules and Standing Orders including Model Standing Orders mutatis mutandis apply to all establishments under Shops Act as if they were industrial establishment and that  applicability  is  not  restricted  to  establishments  in   which  100  or  more employees are employed.

 

Thus if your establishment employs 50 people standing orders should apply to it.

 

>> You have the discretion to decline to accept the increase in notice period.

If the communication is by some email addressed to group/circular sent by email or pasted on notice board/individual email or letter addressed to individual employee and each individual is advised to duly acknowledged and/or accepted copy you can write received and acceptance shall be communicated separately or received an not accepted or received and accepted or as suitable to you.

 

If you do not communicate back properly the company may claim that you were informed and no reply is deemed as acceptance.

 

Notice period is part of service conditions.

For change in service conditions proper notice should be given by employer and employee should accept for the changes to have become effective.

 

 

You can also submit original at reception/counter where all mail/dak of the company is received and obtain receipt under seal and signature from the counter and produce your copy as and when required.

 

Hope you can read between the lines.

 

Mere writing the designation of the employee as Manager and designation alone does not imply that employee shall not be covered as ‘Workman’ as in ID Act, ‘Employee’ as in Shops and Commercial Act…………………..

 

There are many threads o similar subjects, and you may find these relevant e.g;

https://www.lawyersclubindia.com/forum/Whether-notice-period-has-to-be-given-during-probation-91808.asp#.UoSg3nCAqWM

 

 


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