Employee Notice Period

One of the Important things in PEO/EOR services in India is Handling human resources. Handling human resources comes with a whole gamut of jargons and concepts. Together, these HR practices help employees to feel productive and secure in their work environment. But what about when an employee wants to leave the company? What happens to the pending work? There’s an HR practice for this too: the employee notice period.

  1. What is the employee notice period?

The employee notice period is the time span employees must serve after they hand in their resignation letter, or are retrenched by the employer during staff layoffs.

  • Why is such a notice period required?

The employee notice period allows for a ‘graceful exit’ of employees who will no longer work with the organisation. It allows both the employer and the employee to gradually shift their gears.

Without the notice period, imagine how crass it would be if an employee just dumped their workload on another and left!

Every employee in an organisation is tasked with certain responsibilities. These should not suffer when the employee leaves. The employee notice period helps make the shift of responsibilities less jarring.

  • What are the activities an employee undertakes after she / he has handed the resignation notice?

The main objective of the notice period is to help the employee seamlessly transition out of their work. If the employee is in charge of tasks running longer than a month, then she / he sets up a process whereby they can bring their open threads to a logical conclusion.

They may or may not be able to complete their whole project, but it is their responsibility to at least bring it to a state from which another employee can pick it up.

Besides, an employee on a notice period will also have to engage in handovers with the peer who will shoulder the responsibilities hereafter. Open tasks are explained, and any blockages / issues in the task completion are resolved.

The general expectation from the handoff is that the new hire / replacement will carry out the existing employee’s work with the same (or better) level of efficiency so the project schedule is not disturbed.

  • How long is an employee notice period?

Depending on the complexity of work handled, the duration required for handovers, training, and time spent in finding a replacement varies. All of this contributes to the final duration of the notice period.

Typically, the notice period is 1 month.

In certain rare cases, it can be as long as 90 days. However, if the notice period has been willingly initiated by the employee (and it is not because of termination), it is natural that the employee is resigning to pursue other opportunities. It is their lookout to complete handovers as soon as possible and embark on their next experience. So, as an HR practice, it is not recommended to hold employees for 3 months as negativity will fester and the employee will grow more restless with each passing day. This might just hamper your company’s image in the long run.

But, can one negotiate their notice period? An employee notice period is typically a part of the company’s policies. It will be made known to every new recruit while they’re signing a contract. So, employees should not be in too much of a hurry to leave; they should plan in advance especially since they already know they will have to spend some time in transit.

Having said that, if an employee has lesser workloads, or the replacement is competent enough to pick up the threads rapidly, there is really no point in the employee sticking out the stipulated period. In effect, if the handover is completed in advance, the employee may very well enter negotiations. Whether they will be accepted or not is the discretion of the company.

  • A few concluding points about the notice period

The main thing to remember is that the employee’s exit should conclude on an amicable note. The end of the notice period should be a win-win situation. Wish the employee well, and do not regurgitate on the resignation too much.

For this to happen, both the employer and employee should be diligent of the handover processes, to prevent last minute friction. Remunance, with an industry experience of over 15 years, along with PEO/EOR services also provides human resource services to emerging businesses. We help corporations handle their human resources in the best possible way by aligning to the best practices and ironing out any difficulties. If you need assistance managing your human resources, drop us a line.