Not relieving from company - notice period issue Not relieving from company - notice period issue

5 months ago

Dear Sir/Ma'am,

I have 3 months of notice period. I am ready to serve 2 months the notice period so i am ready to buyout last one month or at least consider my earned leaves to compensate the last one month but company is not agreeing for any option.
In my offer letter mentioned as :
" Termination of Employment:
the employee or employer is to give a notice of 90 days to terminate the employment. The company reserves the right to either pay or recover the salary in lieu of the notice period."

even the company is not ready to consider my earned leaves also. they are forcing me to accept their offer to continue with them.

Legal Counsel Vidhikarya

Responded 5 months ago

View All Answers
A.Dear Client,
The contents of your offer letter prove that there is a provision for a buyout of the notice period if the employee fails to serve the whole or part of the notice period. it simply requires logical interpretation of the relevant sentence which says that "the employee or employer is to give a notice of 90 days to terminate the employment. The company reserves the right to either pay or recover the salary in lieu of the notice period." Here either pay means payment of salary if the employee served the entire notice period and " or recover the salary in lieu of notice period" means, in case the employee fails to serve the notice period, the employer recovers the salary in lieu of notice period, i.e, buyout the notice period. In view of the summary interpretation of the relevant terms of the offer letter, you may tender your resignation mentioning therein out of three months of the notice period you can serve two months and the rest one month's salary in lieu of the notice period may be recovered or adjusted with your F & F Settlement(that also includes your leave encashment) dues and walk out after serving two months notice period. On cessation of employment for resignation, the employer cannot withhold the relieving letter and the F & F Settlement dues and is duty-bound to disburse the same to the outgoing employee within a fortnight unless the contract of employment expressly specifies payment of F & F Settlement on a deferred date. So, in case the Company takes any arbitrary steps/actions, then if you are not holding the position of Manager/Supervisor but a workman as defined u/s.2(s) of the Industrial Dispute Act then after serving a legal notice to the Company, reach out to the office of the Labour Commissioner concerned for filing a complaint against the employer over alleged unfair labour practice to resolve the grievance. Additionaly, you have to file an application under Sec.33C(2) of the I D Act claiming F & F settlement dues receivable from the Company on resignation. The application shall be made before the Labour Court within one year from the date on which the money became due to the workman from the employer. Otherwise, you need to file a civil suit seeking appropriate relief in the matter.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 5 months ago

View All Answers
A.Dear Client,
In India, employment contracts and notice periods are typically governed by the terms mentioned in the employment agreement. Since your offer letter specifically mentions the company's right to either pay or recover the salary in lieu of the notice period, it indicates that they have the discretion to choose either option. We need to check if the company has a formal policy on notice periods, buyouts, or leave encashment.
Helpful
Helpful
Share

Post Your Matter Post Your Matter

Talk to a Lawyer Talk to a Lawyer

Ask a question Ask a question

Vidhi Samaadhaan Vidhi Samaadhaan

Read Related Answers

question iconLess Full and final settlement
Dear Sir Please approach the following authority or similar authority in a state The Office Commissioner of Labour Karmika Bhavan, Dairy Circle, Bannerghatta Road, Bangalore-29. 080-29753078 labou...
question iconAlready Served 10 Days Out Of 15 Days Notice Period, But Have Still Not Got LWD.
Dear Client, Please go through the terms and conditions of your employer employee contract once again and understand whether your release letter depends on the service company. if it does not then y...
question iconRegarding obc NCL reservation
Dear Client, There is a general reservation of 10% for the children of BSF officers in the BSF itself, but other general reservation quota depends on the institution.
question iconContractual Employer deducting PF
Dear Client, the Industrial Disputes Act of 1947 defines layoff, it excludes employees in management or supervisory positions. The Act also states that an employee must be a 'workman' to be eligible...
question iconPf overlapped and now jobless
Dear Client, Since your employment with the old company is based on contract for two months, you need to fulfill the said period and resign from the company by following the exit procedure. In case of...