Read your Offer Letter to Recognize Termination Clauses

Employment contracts are also partnership contracts; bondage and leverage between employee and employer simultaneously. It contains the truth of the regulations and the implications for not following them to the dot. The offer letter has some pivotal clauses which need to be understood by the candidate and clarified in cases of reasonable, justifiable doubt. Getting the Sapient offer letter is a moment of happiness, a sense of abundant enthusiasm. Often in these instances, the candidate reads the contract at a high pace and doesn’t go deep enough to understand the termination clauses.

Why is it important to go through the termination clause?

In the heat of the moment of having achieved the offer letter, the prospective employee gets concerned about benefits, perks, conditions, leave sanction policies but they forget to realize that there might be a day when they would resign, or a lay-off would happen for which they need to be aware of the termination clauses; those are equally essential. When someone is at the brim of beginning a new job, he/she in over-enthusiasm to prove himself/herself thinks that the job will last till retirement, but it is not so in reality. One might need to switch careers.

The termination clause in your job offer letter -

It consists necessary details like the tenure period/lasting period of employment, the time period in which the prior notice has to be given, for example, one month before quitting and the amount that has to be paid by the employee as compensation.

There can be situations in private work sectors where an employee is wrongfully terminated, that is, he/she is terminated without any logical cause or without prior justification that is true. In that case, the employee is entitled to get compensation for the damages that he/she has incurred. Sapient is one such company who doesn’t wrongly evict workers and, even if they do, which is rarest of rare occasions, they adhere to the policy of compensations and don’t make a fuss about it because there are clear-cut written promises in Sapient offer letter.

Lastly, the termination clause should have a severance pay policy.

For these reasons, it must be necessary to get the termination clauses crystal clear and explicitly written. Sapient offer letter does that religiously.

Specific laws that revolve around the importance of understanding each and every piece of information in your job offer letter (inclusive of termination clauses) are stated below:

The IDA Act (Industrial Disputes Act) of 1947 states that if a person has been a diligent employee of a company (Sapient - for example) for over one year, then he/she has to be given one month prior notification (written, not verbal) before sacking him off or laying him off.

The IDA Act also states that if a person has been an employee of the company for five or more than five years, then he/she has to be paid a certain amount as gratuity for having been retrenched.

Therefore, it can be said that one needs to wear the thinking that while going through or re-reading the employment/job contract as it has some core guidelines which might have to be sought in the near future; termination clause is one of them.