Notice period in employment contract

Hi Team,
I am looking for your view about Notice period in an organization AS per Telangana Shops & Establishments.

Is it okay as per law, any employer can terminate without any reason with one month Basic salary(Not even Gross!) and if employee wants to leave the organization should give two months notice!

As per my knowledge the notice should be same either side and pay/deduction should be 1month /2months Gross salary.

Your inputs will be useful to one of my friend to accept the offer in an IT Company.

Thank you.



Hey Sowjanya,

In many jurisdictions, including Telangana, the employment laws typically require that both the employer and the employee provide notice before terminating the employment relationship. The notice periods and conditions may vary depending on the specific circumstances, such as the length of service, the nature of employment, and the terms of the employment contract or agreement.

In some cases, employers may have the right to terminate an employee’s employment without cause by providing a notice period or payment in lieu of notice. The duration of the notice period and the compensation payable may be determined by the employment contract or the relevant employment laws.

Regarding an employee’s notice period to resign, it is generally expected that employees provide a reasonable notice period to allow the employer to find a replacement and ensure a smooth transition. The length of the notice period may be specified in the employment contract or agreement, or it may be based on industry practices or applicable employment laws.

Hope this is helpful.



Hi Ritwika,
Thank you for your inputs.
“In some cases, employers may have the right to terminate an employee’s employment without cause by providing a notice period or payment in lieu of notice.” This is okay to me also but for example, if the notice period is 2months as per company’s contract. Towards the smooth transition, Employer will pay only half salary and can terminate? What about the employee if he/she doesn’t get any job immediately. Is it viable paying notice pay 50% only? But if employee wants to leave the company should serve 2months!


Dear Sowjanya1,

If I may add - when it comes to notice periods - it would always end up with mutual understanding between the employer and employee.

If the employee resigned and has signed for a 2 months notice period and already has another job waiting, how he will negotiate with the present company would always matter - he can bargain by saying I can only work for 1 month and can I pay the balance month 50% gross and I will continue to support during weekends or after my work. :slight_smile: ; the law or policy will always be there but there will always be the “internal” agreement that will binding.

For termination - the salary in liue needs really to be settled as per the contract, coz during this time, employee needs to have something to start with.:slight_smile:


Hi @Ludy ,
I agree with you!
The below is the wordings mentioned in the contract which I feel is something is not right.(Here Basic is 50% of Monthly salary)

Termination of Employment:
You will be required to serve your notice period in case you decide to resign from the services of the company. Either party can terminate this employment without giving any reasons thereof subject to a minimum of twomonths’ notice period (in writing). However, the company reserves the right to pay one month’s basic pay in lieu of the notice period and terminate the contract with immediate effect.


Dear Sowjanya1,

Ohh This is one sided contract, so for resignation - it would be 2 months and for termination it is 1 month payment and only the basic pay… :cry: so just 50% of the salary…

I got the below for reference:



Have seen couple of Employee Cases @ Labour Dept. in Karnataka. The wording mentioned on ‘Terms of Employment’ stands valid if the Employee signs it. However, it is always better to keep same notice for both parties.


Dear Ludy,
Thank you for sharing. Even my opinion also either party the notice period should be same.