Vijay Bhaskar (Law student) 21 April 2023

Dispute in notice period after 1 year

Dear Sir/Mam

Greetings.

My friend working in a MNC has served notice period for 3 months but with few weeks shortfall as he left due to medical grounds. But short fall was not approved by Manager so my friend left anyway although MNC held back on experience letter which did not matter much as he did not complete even 1 year. Now after 1 year, MNC is asking my friend to pay for Notice period recovery for the shorfall days. Ironically, MNC has paid him full 3 months full pay during notice period ignoring the shortfall long back. Now Is legal action allowed in this case considering the fact that first notice is being sent after 1 year & MNC has already paid him full 3 months pay during 3 month notice ignoring shortfall.

Thank you for the reply.

Regards

Vijay

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3 Replies

T. Kalaiselvan, Advocate (Advocate) 22 April 2023

It becomes his duty to compensate for the shortfall of the notie period.

He was required to serve 3 months notice period to compensate equivalent salary for the shortfall.

The demand made by the company is legally maintainable

Vijay Bhaskar (Law student) 22 April 2023

Thank you Sir. May I pls ask if MNC would ask employee to revert back the Salary paid for the shortfall days including TDS deposited and then for those shortfall ask the employee to pay.

Ritesh Maity (Labour Law Advocate) 22 April 2023

An employee is required to serve the notice period or pay in lieu thereof in terms of the letter of appointment.

It is an admitted position that the employee has not served the entire notice period as required. Hence, he is liable to pay notice pay for the unserved notice period.

The company may have paid the employee entire salary for the last month (though the employee has not served completely) but it does not automatically absolve him from paying notice pay.

In this case, the company may right ask for refund of the excess salary paid and also demand notice pay for the unserved period.

Though you have not mentioned the amount in respect of notice pay, but company in all practical sense may not go to court considering the legal expenses and time.