Emplyment notice period - one sided

Question

► I am ceo of pvt ltd company. The company hired me as the founder was known to me. He only gave me offer letter. There Notice Period A minimum of 8 weeks of notice period will be applicable in case the employee wishes to not continue the employment with the Company. However, the company may seek more time based on the roles and responsibilities given to the individual to ensure work does not get affected. During the notice period, the employee will continue to deliver all responsibilities as assigned by the company. The employee cannot accept employment with any other company till the time he or she is relived completely by the Company was no contract. There is no end date mentioned in my offer letter. I completed 3 yrs on MAy 31. Can they terminate me without notice pay for lack of generating expected profits?

Answer 1

Dear Client,

The decision about whether the company is legally entitled to fire you without notice pay will depend mainly on the terms of your offer letter, the employment policies of the company and the labour/contract laws. In case your offer letter does not provide any grounds for terminating the contract without notice for underperformance or for failing to make profits, it is likely that the company will be required to adhere to the terms of your notice period or payment of salary in lieu of notice, except where such termination was for misconduct or other valid grounds under your contract. Without a set ending date of employment implies that the contract is open-ended in nature and, therefore, will not allow termination without adherence to the terms of your contract. As the CEO of the company, your right to notice pay will also be governed by the fact that you are a managerial employee and the resolutions adopted by the Board of Directors of the Company.

I hope this helps and if you have any further issues do not hesitate to contact us.

Answer 2

Dear Client,

I understand the legal query raised by you and would like to give you my legal opinion. No, legally they cannot terminate you without notice pay for lack of generating profits because termination can be done based on proven misconduct and not lack of generating profits, which is an issue related to performance.As your position is of managerial status and not that of a workman, your termination requires fair allegations and notice. After three years, you have strong grounds to challenge this kind of termination because of the absence of any end date, making the term of employment permanent.

Hope this answers your query

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Emplyment notice period - one sided

2 Answers