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Vinay Korbi (Manager Accounts)     15 July 2011

Notice Period not served

Hi everybody,

I have recently resigned from an MNC without completing the stipulated notice period of 3 months. The appointment letter goes as " your services may be terminated by either party, giving notice in writing for 3 months or payment in lieu of salary thereof. The company reserves the right not to accept salary in lieu of notice'''.

Now as per above clause the company is insisting to serve 3 three months & not accepting the salary in lieu of notice. while i have served only 1 month. they are threatening me to file a case against me. I want to leave the company becoz the job profile is not good & not at par with my qualification &  i got another good offer. Further i worked in this company only for 2 & half months & resigned. am i regarded as absconded, when i have duly informed my manager & superior before leaving the organisation through mail, served one month notice period? Furher there is nothing to handover as we work on shared folders & every thing is open to all & reviewed by manager periodically. my work doesnt involve financial transaction involving monetary implications.

Further i feel that the terms as stated above relating the notice period are one sided & favourable to the employer.

Pls let me know can the company take any legal action against me.



Learning

 12 Replies

V. VASUDEVAN (LEGAL COUNSEL)     16 July 2011

Your are right. The term reserving the right of the company not to accept salary in lieu of notice is arbitrary and will not stand the scrutiny of law. You may point out this fact in  a written letter, deposit the notice period salary (only basic) by way of a demand draft/cheque and leave the Company.

As I have already observed in this forum, employees particularly well educated like yourself is blidily signing the letter of appointment, allowing the employer to have his free will and point out such clause only when you want to quit. It would equally be unfair on your part and at lease ensure not accept such terms in your future employment!

Vasudean

1 Like

G.V.Nagarajarao (Executive)     16 July 2011

The management's contention in the appointment letter to reserve the right of not accepting salary in lieu of notice period is unilateral and will not fit into the ambit of fair contract. The clause imposed by the management will not stand in the scrutiny of law. Please contest it.

Kumar Doab (FIN)     19 July 2011

Learned experts/members have given their valuable advice. Kindly follow it.

You have posted that:

-"i worked in this company only for 2 & half months & resigned". Probably you were in probation period when you resigned. 3 months probation period is unreasonable during probation period. Kindly seek the advice of your local lawyer and show all the docs. Your lawyer shall help you to firm up you are a workman or not. In case your lawyer agres that notice period can not be more than 15 days in your case, you can contest this too,and lodge your claim for payment of wages for the period you have wroked.

-and that, you have informed your superiors, by mail. Hope you have the copy. It is not easy to declare an individual absconding.

You have worked in total for 2.5 months and the company has put in notice period of 3 months i.e. you have worked for free. In other words you shall have to return all your earned wages.

Kindly examine the documents carefully and seek the advice of elders in the family, competent and experienced well wishers, lawyer/law firm, before you sign on dotted line. It is better than repenting later.

 

Vinay Korbi (Manager Accounts)     22 July 2011

Many thanks for your feedback. Iam ready to pay the notice period pay but the company is forcing me to complete the notice period, because of the above clause in the appointment letter. Further you have mentioned that i need to pay only basic & not gross, is there any provision for this in any of the laws? Further can you refer me the supreme courts decision which states that " no employer can force any employee to work against his will, merely because he has signed an agreement with the employer". This decision was based on the constitutional rights conferred on every one. Iam not able to find this decision.

 

Thanks
 

madhumita singh (HR GM)     27 July 2011

i have left my company after one year but without giving any notice due to health and famiily problems.  Now company has sent legal notice for recovery of 3 months salary.  Can they go legal against me.  pls help.

 

I had signed the appointment letter wherein it is mentioned that contrat can be teminated by giving three months notice period or 3 months salary.

Kumar Doab (FIN)     27 July 2011

You have agreed to the condition of notice pay in lieu of notice. Company can claim notice pay.

You have resigned due to health and family reasons. You can submit a gentle representation to your appointing authority explaining that you worked with absolute devotion and commitment and rendered meritorious services, and due to unavoidable reasons………….you were not able to continue to attend office, and request to waive of the notice pay. They can waive off.

You have worked with the company at a senior position which gives proximity to top management and promoters, and thus provides an opportunity to build rapport and goodwill, and you must have helped company in many ways, and you may be remembering all. You can try.

If company declines your request you may pay and obtain letter of acceptance of resignation, F&F,form16, PF accumulation reports, PF withdrawal/transfer forms, NOC/NDC, work experience certificate, relieving letter, letter for good conduct etc......

madhumita singh (HR GM)     27 July 2011

but when i conveyed to them that i cant continue working at that time they accepted and acknowledge in writing and took complete handover from me without acknwoledging on handing over note.  Now after nine months they are asking for recovery pay or threatening a recovery suit against me.  They are intentionally harrassing me they wont get ready for amicable solution.

Very honestly i had handed over everything to them.  Have not done any theft, mischief or dishonesty with them.

Just want to know legally how strong they are.

Where do i stand legally if i go ahead with this case.  Its is simply harrassment they are doing.  They have got the taste of earning from ex - employees.  Work culture is pathetic there.

Kumar Doab (FIN)     27 July 2011

Madam,

Your honest statement "They have got the taste of earning from ex - employees" matters since it is from EX. GM-HR and is a practice in the Industry.

As per terms of your appointment you are under obligation to pay. You can offer to pay@ basic pay.

Company can claim amount+ interest.

If you feel that you wish to bring them to negotiation table then you should have some handle to negotiate.

Is there any amount which is still not paid to you? You can ask for principle amount +interest

Best approach shall be to forget everything, not to have PCN (pre conceived notions) and try for a waiver.

BE SMART.

madhumita singh (HR GM)     27 July 2011

what is the legal implication in my case?

Kumar Doab (FIN)     27 July 2011

based on your post, it seems,

Maximum; you have to tender notice pay.

madhumita singh (HR GM)     10 August 2011

sir, i tried contacting them but got no response.  Left many messages for call back but got no response.  Now what do i do?

Kumar Doab (FIN)     10 August 2011

Your company seem to  closed the  discussion and has issued a notice, and thus has put the ball in your court.You have to look for some handle on company to negotiate.Kindly chech your records.If any amount is unpaid to you,kep the details ready.

You can contact a competent service lawyer at your location with all record and documents, and give the required inputs and infirmation.Your lawyer shall help you to firm up action to be taken.


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