Legal Question in Employment Law in India
Recently my company changed its policies and declared that if the company terminates the employment of anyone for whatever reason, they are not liable to pay the notice period pay for the full or balance period. I'm working in a Pune based company. As far as I have heard a company has to pay notice period amount to any employee which it terminates normally. So can the company introduce such a clause and lay off its employees without paying them their notice period pay?
2 Answers from Attorneys
no, such a clause is illegal and the company has to pay the notice period to terminated employee. moreover, even the termination has to be based upon a legally acceptable ground and the employee cannot be terminated upon the whims and fancies of the employer. in case you hold a supervisory position, you may even challenge the termination in a civil court and in case you in the labour category, you may approach the labour court.
No, the policy is not valid. However, any policy to be valid must be in compliance with the Provisions of Industrial Dispute Act.
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