Bishnu (Finance officer) 04 April 2015

Employment contract

A NGO hired an accounts person as Finance manager with two year contract . one of term was both party can terminate contract by giving 1 month notice period . also employer can in liue of 1 month notice period pay basic salary for 1 month & terminate him without assing any reason for termination . similary employee can also pay 1 basic salary instead of service notice period but in such case it will be management discreation to accept it or they can compel him to work 1 month notice period.

Now employee wants to resign he wants to pay 1 month basic salary & do not want to work for one month notice period . kindly suggest can employer law fully comple him to serve notice period or not?

kindly give advise thanks in advance

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2 Replies

Kumar Doab (FIN) 04 April 2015

The contract of employment should promote equitable discretion so that it is not declared arbitrary.

Has this NGO registered under Shops and establishments Act?

Has the employee stated in resignation that notice pay be adjusted in FnF statement/settlement or notice pay shall be tendered?

FREDYCHARLES RK - Bangalore (Advocate) 05 April 2015

There cannot be a compulsion in a democratic land like ours with Labor and Industrial acts in placd. The physical attendance cannot be forced but can be requested by the company in the interest of business and big picture of the company. Solve it amicably with the HR and let your grounds for seperation be such your presence will not be possible, but that you are ready to abide and oblige to the seperation contract of 1 month basic+ others in lieu of physical attendance