Is Notice period a valid one in Indian Contract Act ?
Vishnu Nair
(Querist) 12 January 2011
This query is : Resolved
Dear Sir,
I was an employee in an MNC for about four years. Due to some reason I resigned suddenly one day and didn't gave notice period. I resigned at the mid of a month and when I asked for my half month's salary, I was asked to pay one month's salary as I didn't give them one month's notice period which was mentioned in my Appointment letter.
I just wan't to ask you that is this a valid reason? Or this Notice period clause in the Appointment letter has any leagality as per our laws ?
Mallik Karra
(Expert) 12 January 2011
If the terms of the contract say that.. you are bound to seve a notice on them for 1 month or to pay salary of 1 month in lieu... then you are bound by it as you would have signed the offer letter while joining the company.
Vishnu Nair
(Querist) 12 January 2011
Sir,
Eventhough this clause was mentioned in the Offer letter or Appointment letter, can it be taken as a legal one?
Like me, every job aspirants sign the Appointment letter wherein these Notice period clauses are much common. But someone wants to quit the company due to any reason, how the company can compell him to work for notice period or pay one month's salary? I think this Notice Period clause in the Appointment letter has no legal stand and can be questioned under the court of justice.
Expecting your comments.
R.Ramachandran
(Expert) 12 January 2011
Dear Mr. Vishnu,
Please remember, that you accepted the offer after knowing the conditions. Assume for a while if the company does not pay you the sum indicated in the offer letter, would you keep quiet and allow the company to say that it was mentioned just like that and it was not legally binding?
Therefore, when you have accepted the offer with whatever may be the condition(s), now it is not for you to selectively say that such and such condition is not legally binding etc. etc. Remember it is a contract between you and the Company. Both are bound by the terms and conditions.
Vishnu Nair
(Querist) 12 January 2011
Sir,
Bonded labour is abolished in India so no one can force you to do the work after resignation. Employee is not a Bonded labour. Since it's abolished in India, I don't think that such Notice Period clauses in Appointment letters can stand legally evenif it's signed or not by the Employee.
R.Ramachandran
(Expert) 12 January 2011
Dear Mr. Vishnu,
Nobody is asking you to forcibly work. Rather one is only asking you to abide by the contractual terms, which you yourself agreed to with open eyes.
If you are so sure about the legal position, perhaps you would not have posed the query in the first place. In any case, try your luck.
All the bests.
Mallik Karra
(Expert) 12 January 2011
Dear Vishnu,
everyone has a right to protect their interests, you quit for your personal gain and the company wanted you to intimate them to protect their interests... it is give and take, as is in every contract.... thinking is one thing and law is another if you still feel that the clause is not valid, as suggested by Mr.Ramachandran try your luck.
Akhilesh Kumar
(Expert) 12 January 2011
Dear Vishnu, Law says whatever agreement has been made by the parties must be fulfilled if it is made with lawful object and lawful consideration and with free consent and not prohibited by any law.
Advocate. Arunagiri
(Expert) 12 January 2011
If you have signed any agreement, you have to abide by it. If there is any clause for a notice period, you have to give notice or in lieu of that.
Notice period is legally valid. That is being followed even in government/PSU employment.
Ajay Bansal
(Expert) 13 January 2011
Agreed with Experts on this issue.
