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Gaurav (TD)     19 August 2014

Resignation and not serving the notice period

Dear Experts,

I recently resigned from a private company. As per agreement with the company the notice period is 3 months which can be waived off as per managements discretion. My new employer wants me to join as soon as possible but not later than 1 month. I have informed this to my company and it is deliberating on this issue and will inform me a week before the joining date in next company. I would also like to inform that my company had given me a letter for increment in wages starting from Oct. 2013 but they have not increased the salary. Also a letter for giving the bonus was given. In fact tax has been cut for the bonus amount but the amount is not paid.

Meanwhile I fear that company would want to hold my wages and have the following queries:

a) Can the company withhold my wages or bonus on the pretext of giving less notice period? If so what are my options? In the agreement with employer no withholding of wages is mentioned in lieu of less notice period.

b) What can the company do if i leave after 1 month even if they don't approve my one month notice period? My new company is not interested in the relieving letter from my previous organization.

c) Can i ask for the increment in salary and bonus amount for which the company has given me letter but not paid? For the bonus amount the tax has been cut and shown in form 16 of this year but the amount is not paid.

Thanks for your kind time.

rgds

Gaurav



Learning

 7 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     19 August 2014

You can demand for bonus amount only. but not increment of salary. send a legal notice.

Kumar Doab (FIN)     19 August 2014

 

 

1.     You are eligible for increments and bonus both. The act of the company to deduct tax but to withhold the payment is wrong. You may submit a gentle representation to good offices of appointing authority, MD, Chairman with a copy to Head-HR, Accounts, payroll……..

 

 

2.     Demand correct FnF statement for verification and acceptance by you. Affirm to adjust notice pay in FnF statement. Company can adjust notice pay as per T&C signed by you.

3.     Notice period/pay does not depend upon T&C inserted by employer in any private agreement signed with employee e.g. appointment letter, contract of employment……….there are many threads on same subject that you may go thru and pick up relevant points……………….

 


 

You may go thru following thread and other threads mentioned in it.

https://www.lawyersclubindia.com/forum/Manager-not-accepting-resignation-107490.asp#.U_MTnsWSwb8


4.     You may submit notice of resignation addressed to good offices and mention notice period/last day in office and ………………… request to waive off the notice period/pay.

5.     If employee has initiated the separation/retirement from employment then employee shall chose the effective date of retirement. Resignation can be without permission and notice. Since option of notice pay in lieu of notice period is inserted in appointment letter you can offer to tender notice pay in lieu of notice period, however affirm that no tasks are pending at your end and to whom you should handover the charge under proper acknowledgment on the spot.

6.     Even if next employer does not want relieving letter you should obtain it. If employer has adjusted notice pay and has issued acceptance of resignation, handover of charge then nothing is pending at your end and hence relieving letter in addition to service certificate should also be issued.

Request the next employer to buy out your notice period/pay and handover payment immediately upon joining without any conditions.

Kiran (CSO)     19 August 2014

Hi,
I recently joined  a BPO for a domestic local process.They asked me to sign few forms which did not include any bond or agreement that if i resign without informal,I will be under fine or anything.I had applied to higher studies as well but i wasnt sure i would get accepted.Now i got an offer letter so i told my manager on the joining date itself that i will be resigning.He agreed and i wasnt informed about my employee id being generated or any such.
Now they sent me a resignation letter claiming that they have sent me email to which i havent responded.It is false because i havent received any emails from them or any calls.
I have been absent for about a month but i believed that my manager would've informed the HR or others.
They say"Since you have not been reporting for duty inspite of mailing you the warning letters,at the last updated address on our records,you have committed a breach of the terms of your appointment.We regret to inform you that for the aforesaid reason,your name has been struck off the muster rolls with immediate effect.
It is essential that you report to the undersigned at  M****s within 7 days of the date of this letter to complete termination formalities by paying 15days notice period as per terms of your employment plus the amount which the Company has borne in your absence whether directly or indirectly ,failing which the company is free to take such action as may deemed fit by the company."

Since i had already informed earlier and they agreed to it.I was under the impression that my resignation has been accepted.I didnt receive any calls or information about my employee id or requirement at the company.So am i still supposed to serve notice period & pay them??

I cant pay nor join due to my entrance exams coming soon.What shall i do?
Since i wasnt under any bond,Can i ignore this or will i be have to bear the punishment served by the company?
Please help me :(.
Regards,
Kiran.

Kumar Doab (FIN)     19 August 2014

 

 

@ Kiran,

 

 

 

Always initiate a new thread.

 

Employee should always conduct properly and carefully.


1.     You seem to have submitted some HR forms e.g. employment application,PF,ESIC, Gratuity,…………………. Etc. You erred by not keeping copies. Always keep copies. You are sure that you have not signed any service agreement, Bond etc.

2.     Was any offer letter citing some T&C issued to you? Did the company issue any appointment letter too? Offer letter, and appointment letter are two different documents. Is it stated in offer letter, appointment letter that employee shall have to tender notice period or notice pay in lieu of notice period  and also if any liquidated damages has to be paid if candidate does not join duty on joining date?

If NO such document or no such condition is levied you are not liable to tender any amount claimed by the company.

3.     You did not join duties on joining date. Did you inform the company in writing? If yes you may issue reply to the letter of the company refuting allegation e.g. that some mails/letters were ever sent to you………………..and demands of the monies. If NO then too you may claim that you had visited the office and properly informed Mr/Ms……………..designation………….on dated……………..in person. Let your reply be drafted by elders of the family and your lawyer. The company has declared you absconding/absenting/abstaining and has claimed damages from you. The document it has sent to you must be Termination letter and not resignation letter.

If you want to visit the company before that supply the reply by letter thru redg. post.

If you are asked to fill some exit forms then let your elders/lawyer advice you and you should keep copies.

4.     The point is that whether the notice period and notice pay in lieu of notice period is really applicable to you or not.

The BPO’s are covered by standing orders and (Name of the state) Shops and Commercial Establishments Act and notice period /pay may not be applicable to you.

 

5. The company at the most blacklists you in its internal records for future employment.

Gaurav (TD)     20 August 2014

Dear Kumar Doab and Mr. Ramachary,

Many thanks for your prompt reply. Appreciate your advice. Will udate you on the future actions.

rgds

Gaurav

SGK (manager)     20 August 2014

Hi 

    I am working in a listed company and have joined this company in January 2014. I am not liking the job and have started looking out for another job and have landed for one as well. I am just waiting for the offer.

    My concern is that the appointment letter of the current company requires me to serve three months notice period and the payment of salary in lieu of notice period is at the discretion of the company. I would be able to serve only one month notice period and am ready to pay two months salary to the company. 

    If I send my resignation through mail and mention that I will be able to serve only one month notice period and subsequently handover all the assets during one month and leave the company even if they don't accept my resignation, will I be subject to legal action by the company?

   Can one force to make one work without his will in the private sector where it becomes very important to have a sense of security in the current job, both from the comfort level and future prospects.

   Please advise.

Sri

Kumar Doab (FIN)     21 August 2014

 

@SGK,

Always initiate a new thread.

 

Employee should always conduct properly and carefully.

 

1.     Notice period: The point is that whether the notice period of 3 months is really applicable to you or not.

·         You may go thru following thread and other threads mentioned in it.

·         https://www.lawyersclubindia.com/forum/Manager-not-accepting-resignation-107490.asp#.U_MTnsWSwb8

The notice period is not just dependant on T&C inserted by employer in any private agreement drafted by it and signed with employee. Therefore if your Labor Consultant/service lawyer opines that 3 month’s notice period inserted in appointment letter is not applicable to you and is inconsistent with enactments applicable to your establishment then it is void……….

 

You have the option and discretion to express the reasons why you have chosen the separate.

2.     Notice pay in lieu of Notice period: You have stated it is as per discretion of the management. In such a case you may first request to waive it off the notice period/pay. If it does not agree then you may gently ask the company to adjust it in FnF statement and supply the original for verification by you.

 

Or

You may attach the cheque for notice pay @ Basic+DA/Gross/CTC as applicable in your case with notice of resignation and demand acknowledgment on the spot and show its adjustment in FnF statement.

 

You should negotiate the notice period buy out with next employer and ask them to refund on joining without any conditions. If they agree then buy out shall be subjected to taxation.

If the current employer does not reduce FnF wages by notice pay in FnF statement/settlement and does not issue Form16 according to correct FnF statement, you shall be subjected to double taxation and no employer shall easily agree to revise the TDS by it.

 

You should also inform prospective employer preferably in writing that notice period as already informed during interview in your current employment is 3 months and joining time offered to is 1 month and current employer is unwilling to accept your resignation with 1 month notice period/to issue FnF statement-service certificate-relieving letter……………………..and you should be accepted/absorbed on the strength of copy of resignation letter and its proof of dispatch only.

 

3.     Notice of Resignation/resignation by email: You may submit notice of resignation addressed to good offices of appointing authority/MD/Chairman and mention notice period/last day in office and ………………… send it preferably by Redg. post, and obtain POD and also certified copy of run sheet of postman from PO. You should submit reminders and final resignation and do not leave any room for leveling any charge and declare you absconding/abstaining/absenting. You must mention that NO tasks are pending at your end and to whom you should handover the charge/company property against acknowledgment on the spot and also that routine duties be assigned that can be completed on day to day basis within and upto expiry of notice period/last date in office i.e dated………………….

 

 

4.     NO employer can force any employee to work against his/her wish.

 

5.     It shall be appropriate to consult your able Labor consultant/Service lawyer with copies of all docs on record and proceed under expert advice of your lawyer. 


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