Adding a clause to the employee appointment letter
10-Dec-2023 (In Corporate Law)
We needed some suggestion on derisking the company by adding a clause to the employee appointment letters. The clause that we needed was that if a client stops a project due to the team not being able to give results and/or other reasons, then we as a company can let go off the team or a part of it without having to compensate them for the notice period. Is this legally alright and are there any other ramifications that can be expected due to it? Thank you.
Query perused. We are of the considered opinion that opinion that such a clause can be incorporated into the employment agreement / letters. You may contact us for the legal vetting of the appointment letters. For further consultancy and legal services you may contact us.
Helpful?
17+
the clause that you're talking about is a controversial one but it can be done with a few minor changes to it and the company will have to accept some sort of liability for it because of the principles of vicarious liability.
Helpful?
17+
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