Notice Period | Meaning and Definition

What is the notice period?

A notice period is a duration of time specified in an employment contract during which an employee must provide notice to the employer before quitting their job. The notice period typically starts from the time an employee first submits his resignation and ends on the last day of the work. It is a standard procedure followed in every organization to give the employer enough time to look for the replacement of the employee who resigns from the organization. The typical notice period is two weeks, but it can be longer or shorter depending on the situation.

Some people might quit their job without giving notice because they think it’ll give them a better chance of finding a new job quickly. But in most cases, quitting without giving notice makes it more difficult to find another job in the future. Therefore, it’s always best to give notice and leave on good terms, even if you’re not happy with your current job.

Tasks to complete during the notice period

An employee works on various tasks while serving a notice period. Some of these tasks may include:

  •   Getting paid final salary
  •   Returning company property
  •   Completing any assigned projects
  •   Preparing handover documents
  •   Assisting with training new staff members

Types of Notice Period

Generally there are eight types of notice period. Let’s discuss it one by one:

 1. Statutory Notice Period

When employer either terminates the employee or employee leave the organization by his own will he has to serve a notice period. This period can range from one week to one month.

2. Contractual Notice Period

This is the amount of notice period which is pre defined in employment contract. This period is always longer than a statutory notice period. This time period can vary.

3. Probationary notice

This period ranges from one day to 3 months based on employee designation. Usually this period is of short duration. Employees are also paid for the notice period they serve in the company.

4.  Dismissal without notice

If the employee is terminated from the organization because of misconduct or unethical behavior he/she can be immediately removed without any notice period and payout.

5. Payment in lieu of notice

In this type of notice period full payment is provided to employee but there is no need to serve any notice period. Especially, it is done to compensate the leaving employee without notice or breach of contract.

6. Fixed term contract

In this kind of notice period no notice period is to be served by the employee. However, under certain circumstances they are required to serve a notice period.

7. Redundancy Pay

When the employee is terminated from the organization because his position is no longer required in the company, he has to serve the notice period. The duration of notice period to be served depends upon the number of years he has provide his service. For one year of service he has to serve a notice period of one week.

8.  Withdrawing Notice

When an employer provided the notice period to employee it cannot be revoked until both the employer and the employee agrees on common terms.

Benefits of notice period for employer

There are several benefits for employers:

  • It allows the employer time to find a replacement for the departing employee. This is especially important if the employee has specialized knowledge or skills that are not easy to find.
  • It gives the employer time to adjust to the change in staffing. 
  • It allows the employer to review the employee’s work performance and decide whether to offer them a severance package.
  • It allows the employer time to settle any outstanding legal issues with the departing employee. An employee’s departure can often lead to disruptions in workflow and increased workloads for other employees.

How can organizations implement the notice period?

Here are certain ways in which an organization can implement the notice period in an organization:

1. Employment Contract

An organization can implement the notice period through the employment contract signed between the organization and the employee. They can show the employment contract whenever required to the employee. 

2. Incentives or pay out

Organizations can provide severance pay or incentives to pay employees to motivate them to work during their notice period.

3. Sympathetic attitute

HRs must have a sympathetic attitude towards the employee who is leaving the organization which can motivate the employee while serving notice period.

FAQs (Frequently Asked Questions)

The period of time that an employee has to work in their job after they have said that they are leaving, or after they have been asked to leave.

A 1 month notice period means before leaving the organization an employee has to serve a notice period of 1 month.

When an employee resigns or asked to leave from the organization that employee has to serve a notice period in the organization.

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