Why there is 90 days notice period in India?

Why there is 90 days notice period in India?

So many companies introduced having 90 days notice period for the crucial roles and 60 days for non crucial roles. This helped them in many ways by even hire and onboard within 90 days. This brings a seamless transition of roles and responsibilities for the organization.

Why is there a 90 day notice period?

Sometime in 2008, big service-based companies made it 90 days because of the billing convenience. For example, when I work with a service-based company for a client based in the US, they are charging $5,000 a month per employee. So when I quit in 30 days, they lose that billing amount.

Why does India have long notice period?

But why do organisations have long notice periods? Many organisations believe that long notice periods deter other potential employers from seeking out their employees due to the wait time. Secondly, they also believe a long notice period ensures enough time for work transition.

What is the notice period in India?

Normally in India, the notice period varies from fifteen days to up to three months depending on the type of employment (probationary or permanent) or the level of seniority. In general, the higher the level of seniority, the greater is the notice period.

Is 90 days notice period too long?

first reader should realize that if they have 90 days notice they should understand 90\% of the recruiters from technology domain wont prefer profiles with 90 days notice period only 10\% of the recruiters prefer long duration notice period because the project starting period will be in a much further time in the future …

Why is my notice period so long?

Do I receive Full Pay During My Notice Period Yes, you are entitled to receive your full, normal pay and any benefits due during your notice period as per your contract of employment. In this scenario, you are paid for your notice period without having to work it. This is referred to as ‘PILON’.

Why do Indian companies have a 90-day notice period for employees?

There is no rationale as to why Indian companies need to have a 90-day notice period. The same organisations that have 90 days as their notice period expect candidates to join within a few weeks which doesn’t really add up The pandemic has turned the talent market more competitive than ever before.

Is 30 days notice period too long for a job?

Although there is no universal rule as to when you should give a notice period and for how long, high-level leadership positions and highly technical jobs often see a notice period of more than 30 days which can definitely be considered long. Also Read: JP Morgan allocates $3.8 mn in aid for India employees amid COVID-19

What are the disadvantages of longer notice periods?

As more employees get motivated to seek greener pastures, longer notice periods inadvertently end up giving more time to exiting employees to influence other colleagues. Adverse impact on organisational morale: Once an employee has decided to leave, they tend to emotionally disconnect.

Does an employment contract have to be in writing in India?

Except in states which require an appointment order, Indian law does not explicitly require that an employment contract be in writing, although this is the typical practice followed by most employers. Are any terms implied into employment contracts?