This podcast discusses the economic impact of lengthy notice periods and the regulations surrounding them. It explores the recent incident involving pilots resigning without serving notice periods and the government's response. The podcast also delves into the purpose and impact of notice periods in companies, highlighting the lack of specific regulations in India. It further discusses notice periods in employment contracts, including the legal requirements and how they can restrict employees' career opportunities.
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Quick takeaways
Long notice periods can lead to employee resignations and flight cancellations, especially if better opportunities are available elsewhere.
Notice periods can benefit companies by providing transition time, but they can also create conflicts and economic costs.
Deep dives
Pilots at Akasa A resigned without serving notice periods, causing flight cancellations
Nearly a tenth of Akasa A's pilots resigned without serving their notice periods, resulting in temporary cancellations of over 600 flights. While the exact reason for their resignations is unclear, it is believed that they received better offers from competing airlines and did not want to wait. Akasa claims that the pilots breached their contracts and DGCA regulations, as government rules expect pilots to serve notice periods ranging from 6 to 12 months. However, the matter is currently being challenged in court.
Notice periods serve the purpose of employer transition and protection, but can be seen negatively
Notice periods are meant to help companies transition by giving them time to find replacements for departing employees. They also protect employees by providing them with time to search for new opportunities. However, notice periods are often seen negatively and can create conflicts between employers and employees. Employers may use them to retain employees, while employees may feel restricted by long notice periods, which can lead to economic costs for employers. While there is no specific law governing notice periods in India, employees can negotiate shorter notice periods with their employers.