Navigating Notice Period Extensions in Employment Contracts: What to Do When Your Company Changes the Rules

When I joined my company, my notice period was 1 month, but now they have extended it to 2 months. Even more frustrating, they have not been relieving me after the 1-month period. Should I file a complaint? This is a common scam among disreputable companies, particularly Indian service-based organizations. They lower the notice period during economic downturns to make it easy to get rid of employees and increase the notice period when the job market is hot.

A Legal Obligation or a Waiver of Rights?

Legal action against your employer may seem like an option, but the truth is, you might not have the grounds. Most employment agreements include a clause stating, “The employer may change any of the policies at any point in time and the employees shall be bound by the updated policies.” This means you have already waived your right to challenge changes to these terms by signing the employment contract.

However, there are scenarios where filing a complaint could still be warranted. First, ensure that you have not implicitly agreed to these new conditions. If you have not, you are still bound by the terms of your original employment contract. This means you are not required to serve a 2-month notice if you choose to leave early, provided that your contract still specifies a 1-month notice period.

Reading Between the Lines of Your Offer Letter

When you accept a job offer, make sure you read the offer letter thoroughly. Company policies and notice periods can change over time, but as an employee, you are obligated to follow the latest policies. If you believe that the notice period extension is only for your specific case, obtain a copy of the exit policy from the company’s portal and check the effective date of any changes. If the documents still state a 1-month notice period, you may have grounds for debate. However, if the new policy is extended for everyone, follow the new process as outlined by your employer.

What You Can Do

Here are steps you can take if you want to leave your company:

Tender Your Resignation: Send a formal resignation letter, mentioning either that you will serve the notice period or pay the equivalent sum as per your original contract (typically a 1-month notice). Your resignation letter should be clear and specific about your intentions. Stay Compliant: Ensure that you fulfill the notice period as per your contract, unless you choose to pay the equivalent compensation. Debate Only If Necessary: If the company extends the notice period specifically for your case and you have evidence (such as emails or documentation) that you did not agree to these changes, you may wish to debate this within the company. However, any argument should be based on evidence and not assumptions.

Once your notice period is over, the company is legally bound to relieve you from your service, even in the absence of a formal relieving letter.

Conclusion

Employment contracts often include flexible terms, but it is crucial to understand the implications of these terms before accepting a job. When facing a situation where your employer changes the notice period, the key is to review your original contract, stay compliant, and consider your options carefully. If you have evidence and can make a strong case, you may be able to negotiate a solution that is agreeable to both parties.