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Are there any legal consequences of not serving a notice period in company? - CiteHR

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hemlata-singh
Hi All,
I have joined a company on 11th Jan2017 and sent resignation letter on 11th Jan2018. In my appointment letter no where it was written that I need to serve notice period.In reply of my resignation letter my HR sent mail to serve 1 month notice period or pay back one month salary. I have already got new job offer and want to join immediately without serving notice period, so wanted to know what legal action company can take if I am not serving notice period. I am posting my appointment letter details. Please help me in understanding the same. Is there something which states that I need to serve notice period?
8. You shall in discharge of your functions , observe and comply with all the resolutions, regulations, and direction as may from time to time made of given to you.
9. You will observe and follow all statutory laws, notification and rules that are applicable to the functions assigned to you. You will keep yourself well informed in these matters.
10. Without prejudice to what is stated herein above, the company shall be entitled in the event of your being guilty of misconduct or inattention or negligence in the discharge of your duties or in the conduct of the company business or such misdemeanor which is likely to affect the reputation of the company or of any breach of the terms and condition herein, to terminate your services after giving 24hrs notice.
11. The enclosed conditions of employment as they are amended from time to time from an integral
Part of this contact employment
Please help me?

From United States, Ballwin
nathrao
3124

If no notice period was prescribed or agreed upon between employer and employee, then unilateral insistence on notice period would be illegal.
Termination of an employee is to be done after following due process and observing natural justice.
Otherwise it can be challenged in law.
Even unilateral changes in job conditions are questionable as employer and employee have accepted a set of terms and conditions while employing the person.
Changes in terms an d conditions should be mutually acceptable.
If based in USA, take local advocate advice on specific matters by showing all related papers.

From India, Pune
Madhu.T.K
3891

Though it is not clearly mentioned as per clause 8 of the appointment order you are bound to follow any regulation, resolution or direction as may be issued from time to time. The direction to serve notice period of one month issued now is a mandate which is also binding on you. If you have a standing order and the standing order contains a rule relating to notice period then you should follow it even if the appointment order is silent about notice period. Only for a defence you can say that your appointment order does not contain a clause of one month notice period. And in case you were not having any managerial powers in the establishment, you can also say that you appointment having been regulated by statutes, the basic law governing conditions of employment, that is, Industrial Disputes Act, does not insist an employee to serve notice though it is mandatory for an employer to give at least one month notice to terminate an employee.
Now coming to human resource side of the issue, I would say that you have every right o chose your employer and no body compels you to be with one employer. But while leaving an employer you should just go backward and just think that you were in need of employment some one year back and at that point of time, this (present) employer offered you an employment and that was okay for you and with this employment you managed everything till you got this new offer. Now you have an offer, a better offer, with you and therefore, would like to ignore the present employer and want to leave him immediately. Yes, legally you can go, no problem. But after joining the new employment, they will send your details to the previous employer for verification. At that time, against one question, ie, whether the employee is eligible for rehire?, if the answer is NO, what will be your career growth? Another question often asked in such back ground verification is "whether relieving formalities done or not". If the Hr comments on that, that will again become a hurdle for you. Again, you cannot demand a service certificate with exemplary or very good performance. Now think whether you would like to go legal or wait for one month. I would also like to say that if you ask the employer who has given you an offer one month time to join saying that there are a few pending tasks to be done and I cannot come out just like that without completing my tasks, the employer will be happy to give time to you because it will give a message that you are really a responsible person who will not just leave without proper handing over and completing the tasks that you give.

From India, Kannur
PRABHAT RANJAN MOHANTY
535

Dear Friend,
There is nothing to worry all about as there is no notice period clause in your appoinmtment letter. Whic is well speak of the condition.
In absence of the above clause your past employer can not take any action. The present order of HR for serving notice period is nothing but a counter act. Ignore the HR dictation. You send HR a communication that you are not binding to serve notice. Furthermore communcation in this refgard shall be treaed as nothing but harresment.

From India, Mumbai
hemlata-singh
Thank you all for your reply. Now I am more confident.
From United States, Ballwin
nathrao
3124

Dear Madhu,
Some clarifications with your vast knowledge and experience.
""Though it is not clearly mentioned as per clause 8 of the appointment order you are bound to follow any regulation, resolution or direction as may be issued from time to time. The direction to serve notice period of one month issued now is a mandate which is also binding on you.""
I understand job offer and acceptance is a contract based on appointment order.
Any order altering the fundamental charecteristics of job cannot be unilateral.

From India, Pune
PRABHAT RANJAN MOHANTY
535

Dear Friend,
Scored a goal in first session does not mean that game is over. The wiser one defends till final whistle to come. The members have discussed the matter from different angles and possible propositions.
You may not be bound by 'Notice Period' prima facie makes you a win-win position if your new employer does not ask for reliving letter. Just imagine how do you manage if your new employers demands for reliving letter for the joining.
Always there should be smooth entry and exit for better carrier and carrer prospect. Therefore one should be judious to decide for an action by countering the situation to make it more favourable.
It has frequently observed that department looking after entry and exit mostly not act by the policy, rather act as have been prompted which is quite peculiar behaviour. In the instant matter our learned collegues interpreted the querry and advised suitably to custom with time necessity.

From India, Mumbai
Bharat Gera
223

Dear Friend
Presuming that you are not a workmen but working in some responsible executive position my reactions are as under;
1. We are living in a civil society and follow a unwritten normal rule of reasonable decency. Although it is nowhere written in the law book that you should respect elders or speak politely but we still do it. It is nowhere the law that you should say good morning to your boss but you still do.
2. Although there is no mention of notice period in your letter but what is the professional courtesy and principles of natural justice, if nothing is mentioned as to notice in the letter of appointment, does it mean that you will behave irresponsibly.
3. As a manager are expected to ensure that the work of the company should not suffer so you are required to give a reasonable notice say 7/10/15/30 days notice to your employer so that the work does not suffer & alternate arrangements are made.
4. It is really sad to notice that you are looking for excuses to justify your action and putting HR on the wrong side.
5. You need to serve the notice period.
Warm Regards
Bharat Gera
HR Consultant
9322404765

From India, Thane
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