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pankaj   04 June 2015

Notice period - 30 days if not mentioned specifically?

Hello,

I am working in a PVT LTD company (Mumbai) for last 4 years. Last week I gave my resignation letter with short notice of 15 days. They are refusing to give me resignation acceptance saying company laws say one month notice period is necessary.

My appointment letter doesn't mention any clause of 30 days notice. There is no contract or bond between us.

My question is can company force me to stay for 30 days if I am not in middle of any project?

If yes, on what ground?

And how can I get relieved early if talking amicably has not worked? What the labour law says?

Regards.



Learning

 5 Replies

Kumar Doab (FIN)     04 June 2015

What does this company law means:::: as per the person in the company that has referred it? Is this statement verbal or in writing? Saying ………………means verbal.

Who is this person?

 

There is nothing so called Company Law. Company/employer/attornies of employer in Line Management/HR/Legal…………………are all servant and subordinate to the law of the land.

There are various enactments enacted as per law of the land to govern the service conditions  of employees working in the establsihments……………….covered by these enactments. These Acts/statue/instrument of law shall prevail upon any agreement/rule/policy drafted by employer and signed with employee………………..and employer personally is held responsible for faithful observance of such enactments or can be penalized in case of violation.

Any T&C,rule,clause,policy that violated such enactments shall be void.

 

To take it further, the complete appointment letter or atleast the clauses on notice period/Termination/resignation/exit policy/service conditions should be examined verbatim.

 

Is it stated in appointment letter that the service conditions shall be governed by say HR policy/service Reules and regulations etc and have these been made available to you before /alongwith appointment letter or are these placed at any shared portal from which you can download?

 

What is this establishment registered as: Commercial,Industrial?

What is its line of business:IT,ITeS,banking etc?

How many maxmimum persons are employed in it at any point of time?

The Redg Office,Corporate Office of the company, and your reporting office was located in which state?

 

What was your designation and nature of duties?

Do you have leave policy, HR policy,Service Rules and Regulations,Conduct and Discipline Rules that are mentioned in the appointment letter?

 

Was any appointment letter,salary slip of each month,PF number with a/c slips,ESIC card,Form16 given to you?

Did you resign in writing under proper acknowledgment (followed by letter under acknowledgment or by Redg. Post) , and mention NO tasks are pending at your end and to whom you should handover the charge?

Has acknowledgment of notice of resignation, supplied to you? Or is the declinature also verbal?

Are you a member of any employee’s/Trade Unions? All employees should be a become member.

 

What was your monthly salary?

 

You should provide full information, pointwise!

pankaj   04 June 2015

What does this company law means:::: as per the person in the company that has referred it? Is this statement verbal or in writing? Saying ………………means verbal.

 - Exact word used was standing order. But as per information I got from accounts/fin department, company doesn't have a regisitered standing order copy.

Who is this person? - HR and my manager

 

There is nothing so called Company Law. Company/employer/attornies of employer in Line Management/HR/Legal…………………are all servant and subordinate to the law of the land.

There are various enactments enacted as per law of the land to govern the service conditions  of employees working in the establsihments……………….covered by these enactments. These Acts/statue/instrument of law shall prevail upon any agreement/rule/policy drafted by employer and signed with employee………………..and employer personally is held responsible for faithful observance of such enactments or can be penalized in case of violation.

Any T&C,rule,clause,policy that violated such enactments shall be void.

 

To take it further, the complete appointment letter or atleast the clauses on notice period/Termination/resignation/exit policy/service conditions should be examined verbatim.

 

Is it stated in appointment letter that the service conditions shall be governed by say HR policy/service Reules and regulations etc and have these been made available to you before /alongwith appointment letter or are these placed at any shared portal from which you can download? - All appointment mentions is Designation, date of joining, CTC and a clause of secrecy of trade, design etc.  No mention of notice period. No mention of any HR policy or anything like that.

 

What is this establishment registered as: Commercial,Industrial? - No idea. Its a manufacturing company (heavy machinery).

What is its line of business:IT,ITeS,banking etc? - Manufacturing

How many maxmimum persons are employed in it at any point of time? - 200 plus

The Redg Office,Corporate Office of the company, and your reporting office was located in which state? - Maharashtra (All offices and factory)

 

What was your designation and nature of duties? - Sr. Mechanical Engineer - Project and Costing, Turnkey systems (Designing, costing and submitting tenders)

Do you have leave policy, HR policy,Service Rules and Regulations,Conduct and Discipline Rules that are mentioned in the appointment letter? - No mention of any rules as mentioned above.

 

Was any appointment letter,salary slip of each month,PF number with a/c slips,ESIC card,Form16 given to you? - Yes. All of the above.

Did you resign in writing under proper acknowledgment (followed by letter under acknowledgment or by Redg. Post) , and mention NO tasks are pending at your end and to whom you should handover the charge? - I personally submitted resignation to the MD. He said he needs a day to think about it. So I don't have resignation acceptance as now he is refusing to sign it giving my short notice as the reason. I have completed all my projects. All I can do is train other engineers whatever I have learned in last 5 years.

Has acknowledgment of notice of resignation, supplied to you? Or is the declinature also verbal? - Verbal. Nothing in writing. That is what is bothering me. I don't have any acknowedgment. Should I send it by email? I resigned 6 days back.

Are you a member of any employee’s/Trade Unions? All employees should be a become member. - No.

 

What was your monthly salary? - 45000

 

Thank you very much for your help.

Kumar Doab (FIN)     04 June 2015

I am posting following few lines only.

 

1. Determine thew office in which you are located is registered under ;Commercial Establishment or Industrial?

 

If it is commercial then Bombay Shops and Commercial Establishments Act shall apply.

 

You may go thru Sec;2, 38-B,66...........

 

Standing Orders shall apply. If standing orders are not certified then Model Satdning Orders shall apply.

 

Now here you need to get it ascertained if you are covered by the def. of 'Employee' as in this Act i.e.: Bombay Shops and Commercial Establishments Act

 

2. If the Industrial Establishment then Standing Orders shall apply. If standing orders are not certified then Model Satdning Orders shall apply.

 

Now here you need to get it ascertained if you are covered by the def. of 'Workman' as in the Model Standing Orders.

 

 

3. You have posted that:

"company doesn't have a regisitered standing order copy.".........................this points towards that Establishment Does not have CO (Certified Satnding Orders).

 

Standing orders are certified on the lines of Model Standing Orders.
 

If HR and your manager have claimed that it does have then:::::

Standing orders are to be displayed at a conspicuous place/notice board and a certified copy is to be supplied to employee even if against a nominal payment say Rs.10/-----hence employee may demand it from HR-Head/appointing authority/MD...........

 

Employee or anyone can obtain it from CO (certifying authority) that might be DLC at location of Redg. Office of the company against a reasonable cost say Rs.3/page........

 

The CO shall apply to you if your designation is covered in CO................otherwise not.

 

4. It is true that ::::: Standing Orders applicable to the establishment shall prevail upon any private agreement/rule/policy drafted by employer and signed with employee e.g. appointment letter,contract of employment,HR policy and employer personally is held responsible for faithful observance of standing orders.

 

If your designation is not covered by CO, def. of 'Employee', 'Workman' then your service conditions shall be governed by appointment letter.

 

Employer himself,HR personnel,Manager can not and must not behave like a street magician and produce things from thin air.

 

5. How many persons were reporting to you? Did you have power to sanction leave (not just recommend) and can anyone cancell the leave sanctioned by you/award increment/terminate/appoint?

Can anyone cancell the what is  sanctioned and passed by you?

 

 

 

 

pankaj   06 June 2015

Dear Kumar, Mine is an industrial organization. I come under defination of 'workman'. As i mentioned company doesnt have cerified standing order. Hence, model standing order applies. There is no mention of notice period in appointment letter or anywhere. Can I go ahead with arugument and gey relived in 15 days? If required, I can also take help of a lawyer who specializes in labour laws . If employer decides to terminate me today (after 8 days into notice period). Is he obliged to pay me for these 8 days? Or whole 15 days of notice period. Do I have the right (legally speaking) to get my relieving certificate and experience letter? What if they mention anything negative in the experience letter? I can take my next employer in confidence and try to waive off requirement of relieving letter. But experience certificate shall be necessary as a proof of years of experience i have had here. Replies to your questions: Few junior enginers report to me. I don't have authority to sanction leaves. I can only recommend. Can they deley EPF withdrawal or transfer ? Or I can do it myself online?

Kumar Doab (FIN)     06 June 2015

 

  1. A Sr. Project Engineer may or may not be covered by the def. of Workman. You have access to a lawyer specializing in labor laws. Let your lawyer finally opine on it.
  2. You may record (audio/visual/witnessed/minuted) the claim of HR personnel/Line Manager that notice period applicable to you is 30 days. IN case of termination with immediate effect company is liable to tender notice pay in lieu of notice period. Company can not breach its own statement/claim. Or company has to issue notice of termination and ask you to serve it to get salary. However termination after resignation may culminate into bad order. It is time to record everything for use at appropriate time in appropriate forum.
  3.  Assuming that standing orders are not certified but applies i.e. Model Standing Orders shall apply to establishment…………………….and you (assuming that you are covered by def. of Workman)…………………you may go thru Sec13-18. Notice period applicable during probation period is NIL and after confirmation of service 30 days. So if your service was contracted on probation period and is not confirmed then notice period is NIL……………..and if confirmed in writing then notice period is 30 days.

Service Certificate has to be supplied to all employees’ alongwith FnF wages on LWD. You may demand acceptance of resignation/service certificate/relieving letter/ correct FnF statement showing all earned wages-OT-leave encashment-bonus-notice pay etc,Form16 as per correct FnF statement, NOC/NDC etc. Employer is personally held responsible for faithful observance of standing orders.

  1. The question arises what shall prevail: appointment letter or standing orders! Standing Orders. However let lawyer specializing in labor laws, opine finally to you.
  2. According to my limited understanding if you wish to go by terms in appointment letter (if you are not terminated) and separate by notice of resignation/final resignation…………….then you should claim that you are not covered by def. of Workman………………..and if you can establish it then you may succeed to avoid notice pay, since company does not have CO (and that your designation is not covered by CO). In such case 15 days notice by you may be reflected as display of character/integrity as you still submitted notice, and allowed employer to complete whatever formalities it wanted or to put his house in order. You can highlight it to good offices of appointing authority/MD/Chairman, and mention NO tasks are pending at your end and to whom you should handover the charge? Subsequent to your notice you must submit some subsequent communications to good offices and build favorable record, under proper acknowledgment. HR/Manager is not your employer and is just another employee in the company.
  3. If you are not covered by def. of Workman………………..and if you can establish it then if you are apprehending termination or you have been threatened/coerced/forced/intimidated (record such threats) with termination then you can write under proper acknowledgment to good offices………………..and build some favorable record……….and resign with immediate effect…………………. and mention NO tasks are pending at your end and to whom you should handover the charge, under proper acknowledgment on the spot? If you are terminated the salary has to be paid till LWD+ notice pay as applicable.
  4. If you are covered by the def. of Workman or even not but are apprehending termination then you can approach lawful authority/court/your employee’s-Trade Unions NOW.
  5. You should ask your next employer to buy your notice period unconditionally and pay it on 1st day of joining and obtain in writing alongwith that it shall absorb you on the strength of copy of resignation and its proof of dispatch only. You may add that experience certificate ,relieving letter can be supplied only if and as and when supplied by current employer. Otherwise also appointment letter, salary slips of all months, PF a/c slips, ESIC card,Form16 etc can be as good as experience certificate. Don’t be careless with next employer. It should stand by you in writing or you can be is serious trouble affecting your employability.
  6. The funds in PF a/c are not in control of your employer and are managed by EPFO until or unless company has its own trust. You can transfer the funds without past employer. You may submit PF forms to next employer, however under proper acknowledgment. Declinature to attest PF forms is offence.  The designated person has to attest PF forms and submit to EPFO in 5 days and supply the acknowledgment issued by EPFO to employee by effective mode of communication. You may demand it by Redg. Post.
  7. Try to separate at a good note with good comments in service certificate. Remain amiable, gentle but vigilant. Apply your persuasion, persistence, negotiation, reasoning skills that each employee should have. If nothing works then you can lean on your union leaders and count on your lawyer and approach court of law.

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