Notice Period for Ending Employment

Category: HR Insider | Date: | Total Views: 5240

Throughout the employment period, there may be times employees wish to quit their job for better opportunities and employers too may terminate employees for whatever reason it may be. 

Termination of the employment agreement must be addressed with proper pre-notice communication from either party. Hence, a notice of termination shall be given before executing the termination process.

In simple words, the notice period is the length of time required to terminate a contract of employment. It is the number of days after either the employer or employee has notified the other party that they intend to put an end to the employment.

Even if an employee is eager to move on right away, it is necessary to give employers a few weeks' notices. Similarly, before terminating the employment on acceptable grounds, except when employment is terminated upon action taken for misconduct, the employer too must provide a notice of termination. 

Importance of Notice Period

Providing a notice period prepares for departure and delegation of tasks. A notice period ensures that the employee and the employer are both on the same page. The purpose of the notice period is twofold:

  • It provides employers with the time to search for a new employee to fill the position of the employee who resigned. 

  • It allows the leaving employee to start looking for a new job or career path while still benefiting from an income.

Notice before termination given by the employer or employee

The law protects both the employer’s and the employee’s rights to a notice period when employment is terminated. The employer or the employee shall give notice as follows to each other:

Period of employment 

Notice period

Maximum of 4 weeks 

Before 1 day 

4 weeks - 1 year

Before 7 days 

More than 1 year 

Before 30 days

When the employer or the employee fails to provide the notice

If an employer or the employee fails to give the notice within the prescribed time, this would be considered a breach of the employment agreement, and the party failing to serve the notice period would be liable to the following penalties. 

Penalty to be paid by Employer:

Where the employer terminates employment without giving the prescribed notice time, the employer shall pay the amount equal to the remuneration for the period requiring the notice to be given to the concerned employee.

Penalty to be paid by Employee:

Where the employee terminates employment without giving the prescribed notice time, the employer may deduct the amount equal to the remuneration for the period requiring the notice to be so given, from the remuneration payable to the concerned employee. 

Exceptions for Notice Period:

There are a few exceptions when the notice period may not apply. They are:

  • The employee may quit the job immediately if there has been serious misconduct from the employer’s side.

  • The termination may be effective immediately from the company’s side if the employee engages in a felony or any misconduct as mentioned in the Labor Act.

The notice period is one of the most formal things that require a great deal of attention. Both the employer and employee must be given a chance to have fair play. Notice period gives time for employers to hunt for eligible candidates for the positions, whereas employees get time to plan out their careers. For more career tips and HR-related insights click here

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