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Ramesh Chandra Tiwari (Service)     30 May 2009



One of my close relative, sometime back she has been told to resign on account of recession or no business. She had worked in the Company for almost 4 years and 9 months. When she asked for her full and final settlement. She has been told come on certain date.
She was also supporting her father–in-law in his business after office hours/late evenings. Her father–in-law was in similar profession as where she was working.
Owner of the Company came to know about this business where she was supporting part time. Owner called her and informed her that she has been Terminated due to violation of Code of Ethics and now she has to pay him damages caused due this.
 Since the Core business was same therefore the products, clients and vendors are almost the same. So, owner has threatened her to file Civil Suit for the damages. She is now under pressure what to do?
Please guide and advise.
Regards, RCT


 2 Replies


The employer has to prove that she has been helping her father-in-law in after-office hours and he has also to prove that the father-in-law's business is the same.  Both these things are easy to say but difficult to prove.  Without proving in the domesstic enquiry, he cannot terminate her services except on the ground that he has lost confidence.  Do not worry about civil case and damage etc.   He is just bluffing. The employer wants to avoid full and final settlement. File a labour case, if she comes within the definition of "workman"  for illegally terminating her services without paying any compensation.  If she has already resigned, there is no case in favour of her.

1 Like

Ruchi (HR Manager)     11 June 2009

Dear Ramesh, You need to check the clauses in the appointment letter signed by ur cousin...if the appointment letter or any agreement signed says that she cant work part time when she is fully employed or she will not be indulged in any work after the office hours then her employer is correct and can file a case. But Yes, Mr. Prabhakar is right in the regard that it difficult to prove that she was working after the office hours until and unless the employer has something strong in his hands... Suggestion is to forget about Full and Final because in any way it is not ethical to help anybody after office hours when u r working in a company with same business. Regards, Ruchi

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