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Notice Period: Definition, Purpose, Regulation, and Limit

It is important to end work at a company professionally, one of which is with a notice period. Maybe notice period is a foreign term for many people. Even though this is one of the requirements or stages when you want to leave a company. This is important for you to do so that the company can plan for the future when you resign and also prepare for administration. In addition, it also has several regulations in carrying it out.

The employee’s resignation then causes the company to lose employees and look for new talents. To simplify the recruitment process for your company, we provide the best HRIS Software. The software helps your company automate the CV screening process to send interview and test schedules to candidates.

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What is Notice Period?

Quoted from Reed, notice period is the term of time that employees or companies need when employees want to end their work. This applies to both parties, whether the employee wants to resign or the company wants to decide or end the employee’s tenure. The company also needs to notify its employees within a certain period of time before the end of their working period. The notice period will make it easier for both parties to prepare various things without disturbing the company’s performance and employee plans. In addition, this will also show evidence of professionalism from both parties. With this, the risk of employees leaving the company will reduce. Usually, this statement is in the contract.

Purpose of Notice Period

notice period
(Source: Freepik.com)

The notice period is required for companies and employees to prepare plans or people who can replace the vacated positions. The existence of this time lag will facilitate the transition process to someone else who will replace the position. The time lag is also useful for completing the administrative needs of employees and the company. This also applies equally to employees. The notice period is useful for finding a new job and preparing for everything in the future. Not only private companies, civil servants or civil servants also have a notice period. However, it has different terms and conditions.

Regulation

Notice period has binding regulations. Usually, this starts when the employee submits a letter of resignation, or the company submits a letter of termination or dismissal. These are several provisions when an employee wants to resign:

  • Submit a written application for resignation no later than 30 days before the start date of resignation
  • Not bound by official ties
  • Continue to carry out their obligations until the date of resignation

Each company needs to set its own standards regarding the notice period, provided that it does not exceed the legal limit of 30 days. The company also needs to provide an answer to the resignation request a maximum of 14 days before the date of resignation. If the company does not provide an answer, then the company has agreed to the resignation letter.

Furthermore, if the company finds it difficult to monitor the performance of its employees, the company can use the best HR System that we provide. The software makes it easy for your company to manage career paths, track progress automatically, track KPIs, and see potential company employees.

Notice Period Limit

The deadline for notification of resignation one month in advance is also known as a one-month notice. If the company enforces a rule that notification must be made by employees more than one month in advance, it is considered legal. Some companies apply two-month notices, especially to senior employees before resigning. However, the regulation cannot provide strict sanctions if the employee does not carry out a one-month notice or two-month notice. Therefore, sanctions usually come from a work agreement between the company and the employee. On the other hand, this will have an impact on the possibility of termination of employment with the time approaching the end of the working period. This will be detrimental to employees because they have not prepared themselves in the event of dismissal.

Conclusion

Employees who want to resign cannot just leave the company. Employees need to pay attention to the notice period so that positions in the company can continue to run smoothly. In other cases, employees will be penalized if they ignore this. The company also needs to notify employees if they are going to terminate their work. If this is implemented properly, the company and employees will benefit from each other because they can prepare the things needed. To take care of all administrative and employee needs, you can use the HRM Software from HashMicro. With this system, you can perform HR tasks and employee administration automatically. In addition, you can also calculate salaries, manage attendance lists, and other activities through the most complete payroll software and application for enterprises in Singapore. Get a PSG Grant to implement this system in your business immediately.

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Muhammad Syahrian
Muhammad Syahrian
Content Writer Intern at HashMicro. Passionate and hardworking person to develop my marketing skill.

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