Not getting notice period pay out option

Dear Querist,

Understand one thing once contract is made - it can be varied and altered or substituted only with the concurrence of both the parties (i.e employer and employee). Here contract was altered by consent of both. But was your consent free ? Was it not vitiated by undue influence/inequality of bargaining power ? Circumstantial Compulsion & Mental Domination ? Such consent is no consent, and you can seek to oust any authority of second contract. 

Though notionally there is freedom of contract, but courts do step in when there is inequality of bargaining power to correct grossly unjust contractual terms, because these are contracts of adhesion - where a person (employee) is not able to exercise the faculties of his mind. The Clause of 6 months for employee and 1 month for company would not stand the test of judicial scrutiny and is clearly unjust and not tenable.

Serve the company with a legal notice first to avoid liability. 

Feel free to talk !

Dear Querist,

Understand one thing once contract is made - it can be varied and altered or substituted only with the concurrence of both the parties (i.e employer and employee). Here contract was altered by consent of both. But was your consent free ? Was it not vitiated by undue influence/inequality of bargaining power ? Circumstantial Compulsion & Mental Domination ? Such consent is no consent, and you can seek to oust any authority of second contract. 

Though notionally there is freedom of contract, but courts do step in when there is inequality of bargaining power to correct grossly unjust contractual terms, because these are contracts of adhesion - where a person (employee) is not able to exercise the faculties of his mind. The Clause of 6 months for employee and 1 month for company would not stand the test of judicial scrutiny and is clearly unjust and not tenable.

Serve the company with a legal notice first to avoid liability. 

Feel free to talk !

Dear Querist,

Understand one thing once contract is made - it can be varied and altered or substituted only with the concurrence of both the parties (i.e employer and employee). Here contract was altered by consent of both. But was your consent free ? Was it not vitiated by undue influence/inequality of bargaining power ? Circumstantial Compulsion & Mental Domination ? Such consent is no consent, and you can seek to oust any authority of second contract. 

Though notionally there is freedom of contract, but courts do step in when there is inequality of bargaining power to correct grossly unjust contractual terms, because these are contracts of adhesion - where a person (employee) is not able to exercise the faculties of his mind. The Clause of 6 months for employee and 1 month for company would not stand the test of judicial scrutiny and is clearly unjust and not tenable.

For a similar example - see Central Inland Water Corp. v. Brojo Nath Ganguly - 1987 SC

Serve the company with a legal notice first to avoid liability. 

Feel free to talk !

Thanks a lot Bharat! 

That relieves me a bit. As of now I'm trying to negotiate and settle things amicably. I'll consider legal options once I've explored all other options. 

However I wanted to be clear on how to interprete the contract . Can I ask to serve the notice period partially (i.e. 3 months serve + 3 months payout) as per the contract ? OR does this contract states either 6 months serve or 6 months pay.

For easy reference, i'm putting the notice period clause again:

" You will be required to give 3 months notice in addition to 3 months notice period in your existing terms of employment(total 6 months notice) in case during this 18 months period, you want to resign from company or make payment of six months gross compensation to the company in lieu of six months notice. However company can terminate your services after giving 1 months notice. "

Thanks in advance!

"However company can terminate your services after giving 1 months notice."

Compnay has reduced the notice period applicable to both the parties to 1 month. Remain firm. Drill sense into linemanagement,HR and if required approach good offices of appointing authority, MD etc.

Look into SE act applicable to your state, and cite it.

e.g. As per  SE Act applicable to Delhi:

Sec.34

dear sir help me

i work for a very large it company....where i have given resignation letter...now the hr is asking me to serve notice period as per their wish.......but i got a govt. job where i dont require any exp. certificate or any certificate from them.As per the service aggrement i terminate i will have to liquidate an amount equal to rs 50000 and serve one months notice or give a months salary.now iam reqd to join the govt job immediately......so i m ready to give rs 50000 also plus one month salary...now the hr is threatening some police action if i leave before completion of project.......i dont understand what they are talking about....help me??