My husband has been working for a Marketing Agency (Digital Marketing Software, registered under the Companies Act) in Bangalore for the last 5.5 years. He recently got a very good offer from a much larger MNC and decided to take it up. His notice period as per the present company is 2 months and there is the option of buying out the notice period by paying for the shortfall in notice. He is one of the best employees in his current organisation and responsible for ensuring that many of their clients are still with this business. He has a team of people who report to him.
He spoke with his manager (he reports to the CEO) that he will be leaving the organization and requested that he be relieved by March 31 2016. In order to cover for the shortfall in the notice period, he offered to work over weekends and ensure that proper hand-offs and hiring happen during this time. He has also offered to pay in lieu of the 21 days of notice period shortfall (his new company is ok to buy-out his shortfall).
On Feb 22, he sent an official resignation to the company, clearly stating that he wants to move on very amicably, etc and stating that his last working day would be March 31 2016 as well as detailing how he would be ensuring a smooth transition so that in his absence business does not suffer.
He has not yet received any response in writing (acceptance/rejection) of his resignation. However, his February salary has been stopped by the company stating that salary is withheld during notice period and will be paid with full and final settlement.
No communication formally informing him of the exit policies was shared with my husband after he resigned.
1. Is it legal for the company to withhold salary for employees who have resigned?
2. If the company is not willing to pay him for services already rendered in February wherein my husband has worked to the best of his abilities and provided services without any leaves etc. in Feb, even when my husband has tendered his resignation, does that not mean that the company has violated the terms of the original offer?
3. Since no acceptance of resignation has come from the company yet, what recourse can be taken/what are the options available if the company not paying salary is a breach of contract terms?
My husband is eligible for gratuity and the notice period shortfall can easily be recovered from the March salary, if needed. As it stands, there is no reason that the company should withhold his Feb salary. He has been verbally told that holding 2 months salary for exiting employees is company policy even though this was not notified anywhere.
He has put in a formal request on e-mail requesting for all exit policies to be provided to him, but not received any response till date.
Appreciate your advice.