Understanding Notice Period, Resignation, and Employer-Employee Relations in Organizations

Is there any legal precedent if the notice period is mandatory to be served and not deduct salary amount.

Hi,

If an employee leaves an organization without either serving the notice period or paying salary in lieu of the shortfall of the notice period, a civil case can be raised against the employee in a court of law. Under normal circumstances, the clause of termination of services from either side is mentioned in every appointment letter. If an employee has accepted the terms of employment mentioned in the appointment letter in writing, under this clause, legal action can be initiated against the erring employee.

Regards,
Anil Anand

Hi Solly,

To answer your question, the notice period from the employee's end before leaving will depend upon the clause in the appointment letter. In case the same specifies that one month notice is to be given at the time of leaving, then the employee has to adhere to the same. The company has the right to deduct the salary for the period not specified by the employee, and if the employee leaves without informing, then the salary for the period worked can be withheld by the company.

Best Regards, Sadashiv Rao 8)

Hi,

I would like to know a few things. I was working with Company X. I left the organization without serving the notice period; I had given the resignation letter. I didn't receive the relieving letter as well. Now I have joined another company, Company Y. In Company Y, I informed them that I am relieved from my previous organization.

In Company Y, I filled out and submitted the form for the PF transfer. I would like to know if my previous company will inform my current company about my relieving.

If I were the HR Head of Company 'X', I would definitely write to Company 'Y' on this subject because it is a breach of trust not only with Company 'X' but also with Company 'Y' (because you have informed Company 'Y' that you were relieved by Company 'X'). If you had fulfilled your commitments and Company still did not relieve you, then it would have been acceptable to join Company 'Y' without being relieved, but from what you have stated, it seems that you have not done so.

Again, if I were the HR Head of Company 'Y', I would take it seriously because if you can do it with Company 'X', you can do it with Company 'Y' as well, and ultimately, both are employers.

KKT

In this case, I served only less than 6 months in company X and I served for 15 days after giving the resignation letter. In my offer letter, there is no specification regarding the notice period. I received an appointment letter just before leaving, which I didn't sign and return. In that letter, the notice period is mentioned as 1 month. Moreover, I completed all my duties and handed over all documents to my superior before leaving.

What I want to know is if we submit the filled form for PF transfer in Company Y, whether they will contact company X directly for any purpose, or if the PF transfer communication will only happen through the PF office.

Company 'Y' will contact Company 'X' only if they have doubts about any of your declarations, like salary details, etc. But Company 'X' could write to Company 'Y' that you have joined Company 'Y' without getting relieved from Company 'X'. In that case, you shall have to explain the correct position to Company 'Y' that on the date of your resignation, there was no condition of a notice period, and therefore you have done no wrong.

KKT

Hi Krishnan,

I understand that an employer can deduct a part of the salary if the notice period is not served, or in fact, withhold the entire salary if the employee leaves without informing.

I would like to know what happens in the following case:

Say a company doesn't have formal HR policies that it practices in terms of serving notice periods and all.

In this case, if an employee leaves the organization due to an unhealthy atmosphere at the workplace, after serving one week of the estimated one-month notice period that he needs to serve. He has submitted his resignation to the director, which gets accepted as well. The director or the joint MD doesn't bother to take over the work that the individual is doing and there is only one person who is competent in understanding the responsibilities that this employee is handling.

The employee does his part of handing over the work to the other employee and informing the directors about the same.

In this case, can the employer withhold the entire month's salary (yes, the employee has worked for the entire month)?

What are the legal steps that the employee can resort to, and is it justified that an employer treats an employee in this way?

Regards

Hi,

Nice question put up! Well, now that you are with the new employer, they would obviously, at any point in time, be able to check with your present employer for the PF details so that they can smoothly carry forward your PF saving account if you have opted for the same here too. Your previous PF account number would also be referred to for the same. No other issues.

Regards,
Bessy

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Since I am from a BPO, this issue is very common. What I would want to know from you guys is if the offer letter has a clause that says that a notice period of 2 months has to be served - then what happens if the employee leaves and we initiate abandonment letters/termination letter (after handing over the resignation letter to the ops manager). Can the employee file a case against us on account of sending a termination letter when he had already resigned?

Dear Kizhakot,

In this particular case, the employee who has resigned can always go to court (he can go to court even if he does not have a case). However, he does not stand a chance in court because his resignation is not valid as he has left without serving the notice period.

KKT