Definition of Notice Period - Meaning of Notice Period and Significance: HRMantra HR Software

Definition of Notice Period - Meaning of Notice Period and Significance: HRMantra HR Software

 5-6 minutes 

Notice Period Definition

In simple words, the notice period is that period from the date of resignation to the last working day of an employee. The notice period, however, differs from company to company.

It is the job of the HR manager to be quite proactive in organizing a smooth exit process for an employee who has decided to leave.

Do you know there are different types of notice periods as well? If not, you must not have got a clear understanding of this very common concept. Let''s find out everything about the employee notice period!

The Meaning!

Notice period: it is a specified tenure that an employee has to work for the company until he/she leaves.

While there are companies where the employees just have to work for one week, some require more than a month. It absolutely varies from employer to employer.

The notice period is equally important for both employers and employees. Much as it allows employers enough time to find a good replacement, on the other side, it gives employees time to get done with all pending duties. We will discuss this in brief in the next section.

Why Do Companies Require Employees to Serve Notice Period?

Now let''s see why serving notice period is important for an employer, one by one.

• First of all, companies will have enough time in which they can find the right candidate who can replace the leaving organization''s employee. In return, this is also helping the employee leave without pressure or an issue.
• It lets the employees work and accomplish any important job without a hitch and effortlessly hands over their responsibilities and resources as well.
• Thirdly, the notice period is also convenient for HR professionals who receive ample time to put a finish to all the needed paperwork and formalities from their side.
• All in all, this is a win-win situation for the individual and the respective organization.

Variety of Notice Periods

Just take a look at the three notice periods you should know about:

• Statutory Notice Period: A statutory notice period is a legal provision. It''s a provision where a company has to provide a working individual a written notice before the termination of services. Again, the length of such a period often varies according to the country, type of employee, employment status, and law.
• Contractual Notice Period: This refers to the time agreed upon between the two parties—that is, the time each would agree to give the other for proper notification if they had the intention of terminating the contract. By doing this, it allows both the employer and the employee that gap to make necessary arrangements. Under normal consideration of things, the statutory notice period used to be longer than the contractual notice period.
• Zero-Hour Notice Periods: This is the period of time within which a company can hold the right not to give an employee a number of hours. Legally, a company has all the freedom to be able to break their employment contract with an employee any time. Legally, zero-hour notice periods do not have to follow the formal rules of notice, but it is still advisable for the companies and contract employees to agree on a notice period whenever they can.

Role of the HR Department in an Employee''s Notice Period

As an HR, you need to:

• Form Clear Policies: Firstly, you must form a clear policy regarding the employee notice period. When doing so, you must, at the same time, ensure that the duration of the warning period is reasonable and tends to satisfy the laws.
• Notify the Employees: Simply creating policy is not enough. You should make sure every employee is fluent with the notice period rules in the particular policy. The best time to do this, of course, is during the onboarding of the employees. Just in case you missed doing that then, you can get to communicate that before their notice period starts.
• Support the Transition: Generally, there are tonnes of questions and a state of confusion when it comes to the notice period among employees, and the HR managers are held accountable regarding the fact that they are supposed to help them out in such cases. Arrange one meeting and sit with them while discussing all the issues they are facing or discuss all the doubts that cross their minds. This, in turn, will result in a smooth transition for all.

An exit interview can be defined as an official meeting between an employer or professional in human resources and an employee who is leaving that company. In most companies, human resource departments have often been mandated to conduct such interviews and obtain feedback from the employees. The exit interview can help you to get those reasons and hence ways in which the company can be better in the process.

There we go! Everything pertaining to notice periods.

Use all the above said information to implement a noteworthy notice period policy in your company, thereby ensuring a smooth offboarding experience for everybody. Still, to keep things simple and easy, let''s use HRMantra. With HRMantra, you can perform all and any kind of process related to offboarding very easily.

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