Legal Guide

Legal Rules of Notice Period After the Resignation In India

by Bhavya Choudhary · 4 min read

legal rules of the notice period after the resignation in India

Introduction

  • A company must be given appropriate notice or prior information if an employee wants to change jobs or look for better proposals.
  • They surely need time to arrange for the employee’s departure as the empty position should be replaced as soon as possible to eliminate the chances of disrupting workflow. 
  • There are various legal rules of notice period after the resignation in India, which must be adhered to.

What is Meant by a Notice Period?

  • The duration between the resignation and the last working day is the notice period. The employer must be notified that the employee has a date selected as their last day and according to which the employee will serve a notice period.
  • It is reasonable to inform them about this decision as soon as possible as there are various legal rules regarding the notice period after the resignation in India.
  • The employer is also under obligation, as per the law, to provide a notification letter within a fair period to inform them about employment contract termination and to follow the proper procedure of discharge.
  • The employee has the right to give a resignation without any previous notification if there has been any indiscretion on the company’s part. 
  • Similarly, the employer can also exercise their rights and fire an employee if there has been a breach of contract or misconduct on their part, which comes under the legal rules of the notice period after the resignation in India.

What is the Duration of a Notice Period?

  • According to the law, there are no said rules regarding the days for giving or serving a notice period. However, there are legal rules of notice period after the resignation in India. A standard time is two weeks in most places, and this can be more depending on the level of seniority and position of the employee. This duration also depends on the type of job the employee is doing. 
  • For example, Technical job employees have a longer duration because their work is highly organized and critical, so the company needs enough time for a replacement as per the legal rules of notice period after the resignation in India.

Some points to be noted are as follows:

  • If an employee is working for a month or less than that, then no notice period is needed to be provided or served.
  • The employee who has worked for up to 2 years must give notice for at least a week.
  • The employee working for 2-12 years can serve for a week for each year of employment.
  • More than 12 years of employment require a 12-week notice period.

The company will always introduce a notice period clause to acknowledge the legal rules of notice period after the resignation in India within the employment agreement to be clear and concise about its terms and conditions regarding the code of conduct that the employee should know before joining a company.

The employee should also understand the legal rules of the notice period after the resignation in India and respect the decisions and operating system of an organization, along with keeping their career in mind.

This ensures a healthy relationship between an employer and employee. There should be a consideration from both sides regarding the time given to the resigning employee to train the new one and then leaving at a suitable time for other opportunities to properly abide by the legal rules of notice period after the resignation in India.

Meaning of “Pay in Lieu”

  • The employer may also ask the employee to discharge immediately in some cases after receiving a notice period letter. 
  • The due salary for the notice period is given even if the employee has not completed the last day.
  • For example, if the notice period is about three weeks and the employer is asking you to leave immediately, then the salary for these three weeks will be provided to the employee even if they have not worked. 
  • This scenario is only possible when “pay in lieu” is mentioned in the employment agreement and signed by both parties and they are aware of the legal rules of notice period after the resignation in India.

Meaning of Garden Leave

  • There are some cases where the employee is asked to leave instantly after submitting the notice period letter, but the employee is still under the company rolls. This is known as Garden Leave.
  • This step is taken by organizations and companies to keep their sensitive data and confidential information from being disclosed. 
  • If the employee is joining a competitor firm, this step is rather crucial and needful according to the legal rules of the notice period after the resignation in India.
  • The employee is under obligation as long as the notice period lasts, and they are needed to refrain from entering contracts until it is over.

Applicable Laws

  • There are legal risks involved with the termination of a contractual agreement between the employer and an employee, so it is necessary to know the legal rules of the notice period after the resignation in India. 
  • They can be prone to wrongful termination, so adhering to the applicable laws is the best decision in these cases; legal advice is required to follow and understand the position of the contract thoroughly.

The laws governing such contracts are

  • The Industrial Disputes Act, 1947
  • Shops and Establishment Act
  • The Industrial Employment Act, 1946

Some important points about the Employment Contract

The employment contract is a legally effective document that affects both the employer and the employee in many ways, so they must adhere to certain obligations and legal rules of notice period after the resignation in India.

  • The contractor must hold an authorized license to engage contract workers and cannot make them work under their terms as one must understand the legal rules of the notice period after the resignation in India.
  • In India, it is not mandatory to have such employment contracts in writing, but there are different classifications on this matter for every state. It is a safer and more secure way of bringing a contract into effect.
  • Certain clauses are stated in the employment contract, which deciphers the roles and responsibilities, obligations and duties, privacy concerns and rights of confidentiality, salary, and working hours, with many other clauses which are different for every company. The legal rules of the notice period after the resignation in India are also adhered to, and a separate lieu clause can be made.

Conclusion

The employment contract is to be taken seriously as numerous legal disputes may arise if it is not executed properly. Taking legal advice is helpful as a professional can enter each clause and explain the meaning behind it so that both parties can give their mutual consent and be aware of the legal rules of notice period after the resignation in India.

The employment contract can be drafted with the help of a lawyer who can enter various clauses and terms with much efficiency after understanding the situation.

Bhavya Choudhary

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Bhavya Choudhary

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