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Formulating an HR policy, Three mths Notice Period
Human Resources » Policies & Samples

Chrm Message From: bindu Total Posts: 59 Join Date: 18/08/2006
Rank: Manager Post Date: 05/08/2008 03:48:28 Points: 295 Location: United States

Hi Everyone,

We are facing a problem retaining people in our organization in a particular department and are therefore formulating a policy, which as suggested by our lawyer, goes like this: 

This contract of employment can be terminated by the management after giving three months notice in writing or salary in lieu thereof. However, the employees in ________ Department due to the sensitive nature of their job would be required to give three months notice if they wish to resign from the services of the Company. The employee would not be permitted to give three months salary in lieu of the said notice period and would be bound to serve the company for the notice period and finish off the pending work/assignments to the satisfaction of the management. Upon the failure of the employee to serve during the aforesaid notice period, he would become liable to damages caused and other legal consequences that may arise due to the non completion/delay in execution of the jobs caused by the abrupt and sudden unauthorized absence of the employee during the notice period.

Since I have been hiring people for this department for 3 years now, I feel hiring would become all the more difficult rather than retention.

Also, these people are not being hired on high salaries but have great communication skills and ambitions...would any way find better opportunities elsewhere....

Everyone today is on the "Fast-Track" and the above condition would make it difficult for me to have people on board. I invite your comments and suggestions on the same.

Please advice....



Chrm Message From: aishwaryaroy Total Posts: 46 Join Date: 18/08/2006  
Rank: Executive Post Date: 05/08/2008 03:53:31 Points: 230 Location: United States


Notice period of 3 months is too much, as any person would find it hard to get a new job with date of joining after 3 months. I guess you are recruting entry level employees where in the attrition rate is obviously high that too with a low salary.

So reducing the notice period to 1 month, with an offical contract signed for 6 months or 1 year would work out better.



Chrm Message From: Uday Total Posts: 28 Join Date: 18/08/2006  
Rank: Executive Post Date: 05/08/2008 03:55:09 Points: 140 Location: United States


I saw the clause of the three months notice and I'm surprised if anyone would accept this kind of clause. It is detrimental for any organisation to retain a non motivated employee for a period this long. He can upset your systems, copy data and generally enjoy himself at the company's expense.Unless your company has long term contracts and taking a person of a project requires three months.

If you have been doing recruiting, you'll agree that most employers would want a person to join ASAP but definately not later than 15 days or at best a month.I wonder how your clause runs against this aspect. How many of your previous employees actually adhered to this clause. Of course any company has the advantage of other financial effects like ppf, etc that is paid at a later date and therefore can be held against a person leaving but a situation like that causes further grief.

One method of making a company grow is allowing some employees to leave the company who feel jaded, or out of the race to seek other employement or take advantage of oppurtunities in other places with a view to get them back later on; more experienced without having to bear the cost of developing them and providing them a different experience. A clause like three months and the consequent heart burn will prevent this from happening.

In effect, it all depends what the company's hiring model or HR system is inclined towards.

Warm Regards


Chrm Message From: kaushal parikh Total Posts: 31 Join Date: 18/08/2006  
Rank: Executive Post Date: 05/08/2008 03:56:41 Points: 155 Location: United States

Dear Friends,

3 Months Notice period is something really confusing, It needs lot of thinking and Thought process.

Until unless the poster of this message, comes out openly , about deployment of such personal for specific purpose ( Or) under clients agreement wherein Minimum period of working of 120 days stands essential who ever occupies posting, we may be not in a position, to standardise the 3 months Notice period.

3months Notice looks really shaky and as one of our colleague said it is RISKY and Unwarranted Situation to keep staff working for 3Months after making his mind not to work.



Chrm Message From: nagarajan Total Posts: 35 Join Date: 18/08/2006  
Rank: Executive Post Date: 05/08/2008 03:59:34 Points: 175 Location: United States


If the assignment and job is such that it requires the person to stick to it for atleast 3 months when he/she takes responsibility than to my openion 3 months notice is the only option. In my organization, a person takes up teaching assignment and he/she has to be there for a semester(16 weeks). If one leaves than there will be lots of problems to the organization to get the replacement, carry on from where he left, evaluation left half-way as it is continous evaluation and similar problems. So a person who takes up this assignment has to stay for 16 weeks and than only he can leave. In this situation we have clause of completing the assignments under hand before leaving in our appointment letters.


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