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Sumit   08 November 2015

I just signed an employment agreement and then left

Greetings!

I joined a company in Delhi in August, 2015. I received an offer letter from the company that contains the generic HR rules besides my salary and designation, but there was not mention of any restrictive clause.

Now, after two months, in October the company circulated notarized document where the Clause 21 said:

"You are bound to serve two months' notice period before leaving the appointment (whether confirmed or probation). In case you fail to do so, you will be charged for two months' salary in lieu of your notice period"

I refused to sign the document saying that the clause is not right as the notice period (2 months) during probation and after probation cannot be same. After much tussle for 10 days, they told me that they will create an exception for me by changing the clause. But they also told me not to talk about it with any other employees regarding this. I felt more suspicious. Even before signing the agreement, I made up my mind to quit the job due to exploitation and poor work environment. They changed the clause to 1 month notice period on the same day on which I signed. The HR told me, now it will be notarized again and a copy will be given to me.

Still I think they had some doubts whether I actually stay in the company or not and did not pay my October's salary. Next day, I sent the company an email mentioning my inability to continue with the as I needed to get back to my native place for mother's poor health. I also mentioned that since I did not receive my October's salary, it should equate to 1 month's notice period. So, no obiligations left for both the sides.

Now, my question is despite taking my 1 month's salary, can the company take any legal action? 



Learning

 6 Replies

Kumar Doab (FIN)     08 November 2015

You have posted that:

---"They changed the clause to 1 month notice period on the same day on which I signed"

 

Which document you signed: Old one with notice period of 2 months or new one with notice period of 1 month?

Do you have copy of both?

 

---"Next day, I sent the company an email mentioning my inability to continue with the as I needed to get back to my native place for mother's poor health."

 

What next day: Next day of sigining the old one with notice period of 2 months or new one with notice period of 1 month?

 

---"I joined a company in Delhi in August, 2015. I received an offer letter from the company that contains the generic HR rules besides my salary and designation, but there was not mention of any restrictive clause."

 

Did you get offer letter before joining or you got apointment letter, and did you get appointment letter also after joining?

 

What is this establishment registered as: Commercial or Industrial? (you alone have to find it out).

What is its line of business? e.g. IT/Banking etc!

What was your designation and nature of duties?

Did you have power to sanction leave/increment/appoint/terminate?

Did you get salary slip of each month?

Did you submit notice of  resignation or resignation with immediate effect?

Do you have copy,proof of disptach,acknowledgment and acceptance of resignation?

 

Are yu a member of any employee's/trade unions?

 

 

1 Like

Sumit   08 November 2015

Thank you for your quick reply. Here are the further updates:

Which document you signed: Old one with notice period of 2 months or new one with notice period of 1 month?

Do you have copy of both?

- I signed the new document with the amended 1 month notice period. I have the copy of the first one, not the latest one.

What next day: Next day of sigining the old one with notice period of 2 months or new one with notice period of 1 month?

- Next day after signing the document with 1 month notice period.

Did you get offer letter before joining or you got apointment letter, and did you get appointment letter also after joining?

- I got offer letter after joining. Did not receive appointment letter.

What is this establishment registered as: Commercial or Industrial? (you alone have to find it out).

- I am not sure. I need to find out. Their website extension is .org.in

What is its line of business? e.g. IT/Banking etc!

- The company provides corporate training. So, they are into training and development.

What was your designation and nature of duties?

- Mine was a managerial position in the content development. I worked on developing content for both training and their digital marketing division. They also made me work on developing reports.

 Did you have power to sanction leave/increment/appoint/terminate?

- No, I did not have. The designation "manager" was just ornamental. I was treated like a novice there.

 Did you get salary slip of each month?

- Did not receive any salary slip.

Did you submit notice of  resignation or resignation with immediate effect?

- Submitted notice of resignation with "immediate effect".

Do you have copy,proof of disptach,acknowledgment and acceptance of resignation?

- No acceptance.

Are yu a member of any employee's/trade unions?

- No, I am not a member of any trade union.

I also would like to reiterate that I did not receive my October's salary from them. Thanks.

 

 

 

 

 

 

Kumar Doab (FIN)     08 November 2015

What is the notice period inserted in offer letter issued to you? You have not signed the document with 2 months notice period therefore it does not apply to you. The Notary should ask both parties to present before him to sign, before him. The establishment should be covered by Delhi Shops and Commercial Establishments Act that does not discriminate between ‘Workman’, ‘Non Workman’. You may be covered by the def. of ‘Employee’ as in this Act. Appointment letter should be issued as per this Act. Notice period as per this Act is as per length of service and may not be even 30days as per this Act. If service conditions are not firmed up then this Act shall decide the service conditions. You may carefully go thru the Act and its provisions……………….including but not limited to notice period, appointment letter, but also to leave encashment……………bonus etc. As far as the designation being decorated/ornamental is concerned the nature of duties may become a factor and you may find the cue from your post that ::::::” I worked on developing content for both training and their digital marketing division. They also made me work on developing reports.” In any case you may record all calls/meetings and first ask them to state in writing what notice period is applicable to you (substantiated by documents circulated/supplied to you and accepted by you), and demand the copy of the new document, acknowledgment and acceptance of resignation, FnF statement showing all payables by company to you/by you to company and net amount payable by anyone to other, Form16 as per correct statement, service certificate, relieving letter (with good comments/avoid without comments or with adverse comments), NOC/NDC etc…………………BY Redg. Post only. You should be able to resolve the matter or you may lean on your counsels.
1 Like

Vaibhav Dixit (IIT Guwahati (B.Tech.))     08 November 2015

I would advice you to wait and see if they send you any intimation, notice or email. Many times, companies do not usually even follow up on these issues. Maybe, they will withhold your experience certificate till you pay them the amount in cosideration. And since the notary usually doenst notarize without both parties being present, there is a good cahnce that the company will bank upon the earlier agreement only (with 2 months clause)

Send them an email to their official email. Mention that as according to revised/ updated agreement signed by me wherein 1 month salary is owed my the employee to you in case the employee leaves without serving the notice period.  I hereby authorize that the my salary for month of October, 2015 be kept by you as I was unable to serve the notice period due to unavoidable circumstances as ........................... <Mention Reason>.

Apart from all the detailed legal dimensions as mentioned by Mr. Doab, such an email will put everything on record in case the company tries to do mischief by saying that no 1 month clause agreemtn was signed (as you do not have a copy). Moreover, any non response from company side, would mean that you have throughly sent intimation to the company and company did't dispute it.
Apart from it, detailed advices can follow only if the company does anything. If the company isn not interested in pursuiing the matter then nthing matters.

 

(I am not a lawyer. This advice is from a personal experience)

Kumar Doab (FIN)     08 November 2015

. Conclude the mattr once for all and in writing on proper record and avoid complications in future too.

You separated due to earlier reason of exploitation and poor work culture. YOu alone would know the details of it and these may be breach by employer rendering employer unworthy of being employed with e.g. extended work hours but NO ;OT, delayed payment of wages etc...................and in such conditions conditions like notice period/pay would loose its sanctity.

 

You have not signed any document for 2 months notice period hence it does not apply to you.

You have cited some notarized document with 30days notice that is not signed before notary and it is guessed that company should hesitate to effect it.

Practically there is no notice period as there is no valid document.

 

Delhi Shops and Commercial Establishments Act is the Act that was enacted to govern the service  conditions of employees working in establishments covered by this Act and provisions of this Act shall prevail upon any private agreement/rule/policy etc drafted by employer and signed with employee e.g. offer letter, appointment  letter, corrigendum,HR policy,Service Rules and regulations etc

 

Thus if you are covered by the def. of 'Employee' as in this Act the notice period as per length of service in thei Act shall prevail upon any other document..................

 

You may without any hesitation demand all docs as already metnioned.............in previous post and salary of October.

 

 

 

 

1 Like

Sumit   08 November 2015

My sincere thanks to Mr. Kumar Doab, Mr.Vaibhav Dixit for your practical and useful responses!

- Sumit


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