Notice periods and severance packages in an EOR arrangement require careful consideration of both legal requirements and contractual obligations. The handling of these elements must comply with local labor laws while ensuring fair treatment of employees during the termination process.
In India, notice periods are legally enforceable and vary based on employee roles and company policies. The standard notice periods typically range from:
The notice period terms must be clearly specified in the employment contract and comply with local labor laws. During this period, employees are entitled to their full salary and benefits, including applicable leave benefits4.
Under the Industrial Disputes Act, employers must ensure:
The calculation of severance packages typically considers:
Wisemonk, specializing as an EOR for global businesses in India, simplifies the handling of notice periods, severance packages, and compliance with local employment regulations. By managing the entire process, Wisemonk reduces administrative burdens, ensures regulatory compliance, and provides transparency for both employers and employees. This expertise ensures that companies can manage terminations confidently, with all settlements processed accurately and legally, allowing your business to operate smoothly in India.