Employer reverting back LWD employee Employer reverting back LWD employee

2 months ago

I am working for an abc company from 2020 . In Jan 2024 I have submitted my resignation letter for which I was asked to serve the notice period of 90 days. But later after all my project dependencies are cleared they gave me LWD as Feb 16 , which I have used as LWD for my new company to processes .Now they come to me and say 16 will not be your last working day and the mail which we sent is no longer valid.What is the steps I can take here

Anik

Responded 2 months ago

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A.Dear Client,

It appears that the company has engaged in unfair labor practices with the intention of harming an employee's career. When an employee resigns following the terms of the appointment letter and serves the notice period, any arbitrary revocation of the approved remission in the notice period by the employer can be challenged under Section 27 of the Contract Act, 1872. This section prohibits agreements that restrain trade and profession. According to Section 27, any terms forcing the employee to serve the employer or restricting them from joining a competitor are not valid.

An employee has the right to resign, even if bound by an employment bond specifying a specific service period. If the employer can prove that the employee is joining a competitor to disclose trade secrets, the court may issue an injunction order. Sections 73 and 74 of the Contract Act, 1872 deal with unliquidated and liquidated damages, respectively. Compensation is only awarded if the breach of contract results in actual loss or damage to the employer.

In the current situation, if you are a workman as defined in Section 2(s) of the Industrial Dispute Act, serve a legal notice to the company and approach the Labor Commissioner's office to file a complaint against the company for alleged arbitrary and unfair labor practices. Alternatively, if you are not a Manager/Supervisor, file a civil suit for specific performance against the company seeking appropriate relief.
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Vidhi Samaadhaan Vidhi Samaadhaan

Legal Counsel Vidhikarya

Responded 2 months ago

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A.Dear Client,
From the contents of your query, it appears that the Company has adopted unfair labour practices to victimize an employee with ulterior motives to damage his career prospect. When an employee tenders his resignation following the terms of his appointment letter and serving the notice period, any approval of remission in the notice period by the employer, cannot be revoked arbitrarily by an employer affecting the careers of an employee. But such an arbitrary and unethical action of the employer can be challenged by invoking Section 27 of the Contract Act, 1872 which prohibits any agreement in restraint of trade and profession. As per the mandate of Section 27, any terms and conditions of an agreement that directly or indirectly compels the employee to serve the employer or puts a restriction on them joining the competitor or other employer is not valid. The employee has the right to resign from the employment even if he has agreed to the employment bond to serve the employer for a specific period of time. In the case where the employer is able to prove that the employee is joining the competitor to disclose the trade secret then the court may issue an injunction order restricting the employee from joining the competitor. Further, Section 73 of the Contract Act, 1872 makes provision for unliquidated damages. Section 74 of the Act deals with liquidated damages and no compensation is attracted for mere breach of contract u/s.73. or 74 of the Act unless such breach resulted in an actual loss or damage to the opposite party employer. So, in the prevailing situation, 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 concerned Labour Commissioner office for filing a complaint against the Company to redress your grievance over alleged arbitrary and unfair labour practice. Otherwise, you have to file a civil suit for specific performance against the Company seeking appropriate relief.
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