Serving Your Notice Period: Your Rights and Responsibilities During the Notice Period
Before leaving a job, employees must inform their employer ahead of time and work for a set period, called a notice period. Employers must also follow this process when letting go of an employee for business reasons. In this article, you’ll learn what a serving notice period is, serving notice period meaning, and whether is it compulsory to serve notice period, helping you manage employee exits smoothly.
Serving Notice Period Meaning?
A notice period is a specific time interval that starts when an employee resigns from his/her designation and lasts up to the last day of the employee. Depending on the terms and conditions of each organization employees have to serve a notice period according to the government laws and regulations. Usually, employees have to serve 15 days to 30 days notice period, except for some companies. The length depends on the type of employment, whether the employee is on probation or permanent. Similarly, companies must notify the employees before ending their jobs.
Is it Compulsory to Serve Notice Period?
If you are wondering if it is compulsory to serve a notice period or if you should just leave your current designation without serving a notice period, here we will clear all your doubts.
According to the Indian Contract Act 1872 and the Industrial Employment Standing Orders, It is compulsory to serve a notice period for an employee and the employer must notify the employee before ending their job. If employees leave their jobs without serving a notice period, they have to face some difficulties and are not provided with the benefits that are provided to the employee who resigns and serves a notice period. Benefits such as experience letter, security, and others.
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Duration of the Notice Period in India?
The length of the notice period depends on different factors such as for each organization the rules are different, it also depends on the role of the individual in the company. It is important to mention the duration of the notice period on a job offer letter. Typically, it lasts for a maximum of 15 to 30 days but in some organisations, it can range from 60 to 90 days. Employees who have higher positions typically serve more days as it is difficult to find employees with higher designations. In Singapore, if there is no notice period defined then the length of the service they provide is as follows stated by the Ministry of Manpower:
- One day notice period for employees working for less than 26 week
- One week notice period for employees working for 26 weeks to 2 years.
- Two-week notice period for employees working for 2 years to 5 years.
- Four-week notice period for employees working for 5 years to more.
Why it is Important to Serve Notice Period
It is not easy to handle employees. You have to pay the dues, find a replacement, and shift the responsibilities of the employees internally. Additionally, you will have to ensure a smooth exit process to establish a culture of respect. A clear notice period policy also facilitates it. serving notice period help employer or organization in several things such as:
- It helps transfer knowledge, reassign tasks, and reduce disruptions.
- Besides, it also helps you find time to conduct interviews and employ new employees, preventing sudden vacant positions.
- It further solves the contracts and retrieves company property.
Types of Notice Period
Few notice periods are predefined by the government while some are dependent on employment contracts. Let’s understand both:
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Statutory minimum notice periods
These Notice periods are set by local labor laws or government regulations. It shows the minimum number of days the employee must work after resigning or being fired. The notice period often depends on how long the employee has been with the company—the longer the service, the longer the notice period. The length of service and the reason for termination are key factors that affect the statutory minimum notice period.
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Contractual notice periods
In this type of notice period, the days an employee will have to serve before leaving are mentioned in the contract. Both the employee and employer must follow the rules mentioned in the contract. Not following the terms and conditions during resignation and termination can lead to penalties.
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Probation Period
This is also termed the trial phase of employment, typically lasting until 3 to 6 months. Within the probation period, the performance of the employee is analyzed by the employer, which culminates in the determination of whether the company needs them or not. The employee also derives his decision as to whether this job is suitable for him or not at the end of the probation period.
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Termination for reasons of causes
If you work for a business, there are requirements that you must also adhere to. If you breach them, the employer can terminate your employment immediately without giving you notice. This can be on grounds such as theft, harassment, insubordination, repeated breach of the policy, or failure to meet expectations of doing your job.
When the employee has been notified several times, that gives the employer a reason to terminate the employee. However, the problem should be on paper in any case law to be used in the lawsuit process in case of a challenge. If there is no apparent reason, the employer should provide a period of notice.