Minimum Notice in contract?

[messyleo]

Hi guys

I have just started on a fixed term 1 year contract, but have an interview for a longer term position coming up and if I get it, I would love to take it. However my contract for the above position requires I give 1 month's notice which may put the other company off hiring me. However from investigating the Minimum notice act I found this on the ICTU site, and wondered am I correct in my interpretation that because I have been there less than 13 weeks I would not need to give the full notice period stated in my contract??? I'm pretty confused!

"Minimum Notice
The Minimum Notice Act, 1973 to 2001 provides that every employee who has been in the employment of his/her employer for at least 13 weeks is entitled to a minimum period of notice before that employer may dismiss him or her. This period varies from one to eight weeks according to the length of service. An employer who is unable to provide the appropriate minimum notice may pay notice in lieu to the employee. An employee's minimum notice entitlement is as follows:

• 13 weeks but less than 2 years service = one week notice
• two years but less than five years = two weeks notice
• five years but less than ten years = four weeks notice
• ten years but less than fifteen years = six weeks
• more than fifteen years = eight weeks notice
• An employee who has 13 weeks service with his/her employer is obliged to give one week's notice to his/her employer when resigning, unless there is a written contract of employment that provides otherwise."

 

[millieforbes]

I think that should apply to you

To be honest if the company only just hired they may be happy for you to go quickly rather than pay you when you're heart wouldn't be in it and they might not get much from you for the remainder of your term there

 

[greenfield]

Your contract applies i.e. you are obliged to give a months notice; however there is very little in reality a company can do if you want to give shorter notice. As millieforbes says, they may be glad to be rid of you!

 

[messyleo]

Thanks for the bad news guys

Just wondering what would be the maximum amount of money I may have to pay if, hypothetically, they did take me to court over it (I know this would not happen in a million years but if I knew what I was getting myself in for in a worst case scenario it would help!). Is it just the full remuneration of the contract (e.g. the unworked portion of my salary) or could they look for any amount they wanted as compensation?

Thanks again

 

[becky]

There wouldn't be a lot of case law on this as it's simply too much bother. Possibly at very senior levels.

Paying your notice wouldn't be a runner in my opinion as it could be viewed as a breach of the payment of wages act.

We have had a few people who resigned with immediate effect and we just took them off the payroll.

We have also had people who give notice and ask for their holidays in lieu of notice and it's been allowed. I don't see the point of having someone at work when they don't want to be there.

I'd speak with the new employers and tell them you have to give a months notice but intend asking for it to be waived. Tell them you want to do what is required and don't want black marks on future references. I'm sure they can wait for month.

As someone said, your current employers may be fine with it or simply just want you gone.

 

[messyleo]

I'd speak with the new employers and tell them you have to give a months notice but intend asking for it to be waived. Tell them you want to do what is required and don't want black marks on future references. I'm sure they can wait for month.

This is a great suggestion - it sounds like the best approach - thanks a million!

 

[dontaskme]

Thanks for the bad news guys

Just wondering what would be the maximum amount of money I may have to pay if, hypothetically, they did take me to court over it (I know this would not happen in a million years but if I knew what I was getting myself in for in a worst case scenario it would help!). Is it just the full remuneration of the contract (e.g. the unworked portion of my salary) or could they look for any amount they wanted as compensation?

Thanks again

I'd imagine the most that the company would be out of pocket would be the difference between your salary and a replacement at short notice for the month. So if they have to hire someone and pay them 25% more than you then they're out of pocket by a week's salary. But as someone said it is usually unlikely that they'd make a big deal out of it.

 

[Leo]

I'd imagine the most that the company would be out of pocket would be the difference between your salary and a replacement at short notice for the month. So if they have to hire someone and pay them 25% more than you then they're out of pocket by a week's salary. But as someone said it is usually unlikely that they'd make a big deal out of it.

There's also the potential of lost earnings the business may suffer through delays in delivering products/services. In that case, losses could be significant. But as others have said, it's unlikely to be pursued.

Your potential new employers no doubt expect their staff to serve notice periods, so should not have an issue with you serving yours provided you are open with them about that requirement. Very few people applying for permanent positions come without such a notice period, so I wouldn't worry about it.

Tell them you're prepared to negotiate your way out of serving the notice period, but that may not be possible. They'll understand.
Leo

 

[redchariot]

I think that should apply to you

To be honest if the company only just hired they may be happy for you to go quickly rather than pay you when you're heart wouldn't be in it and they might not get much from you for the remainder of your term there

I agree, where I work, a girl handed in her notice about 2 months after she started and she was asked to leave immediately (even though her contract stated 1 month had to be given); apparently the policy of the company is if you quit within 3 months of starting, this happens.