Legal Issue - Should There Be A TAT Of 15-30 Day Of Notice Period For Companies As Well?

Dear Seniors,

Kindly give me the solution to this issue.

I left my previous organization in May 2013 without serving the notice period due to a health issue. I sent my resignation through email along with medical reports, and my company accepted it.

Now, after 5 months, I received a letter from my former employer stating that I left the organization without serving the notice period and that I have to pay one month's salary as agreed upon at the time of joining. They mentioned that if I fail to do so, the company may take legal action.

The question arises as they never informed me about this requirement at the time of resignation or afterwards. I did not receive any communication via email, call, or letter until now when I received the letter after 5 months.

Do I need to pay after such a long time without prior notice or information? Is there an option to resolve this issue without making any payment? It seems unfair for the company to contact me for recovery after such a long period. What are the legal implications of such a situation?

In cases where an employee leaves the organization, there should be a clear Turnaround Time (TAT) of 15-30 days for notice period or Full and Final (FnF) settlement. Similarly, there should be a TAT for companies as well.

If anyone can assist me with this issue, I would be immensely grateful.

Thank you.

Hello,

You may not like some things I will ask, but to advise you, one NEEDS to know:

1) Did you have a formal appointment letter when you joined the said previous organization?

2) When (on what day) did you join that organization?

3) At the time of leaving, were you on probation or were a confirmed employee?

4) Were you away on medical grounds with the company's knowledge and approval? How long were you away on medical grounds?

5) What was the Notice Period you were obliged to give upon resigning? On probation and after confirmation?

6) Why did you have to resign through email? Or is that the standard practice in that organization? Were you employed in manufacturing or the IT industry?

7) Do you have any document to show that the organization has INDEED accepted your resignation?

8) Did you receive your full and final settlement of employment dues?

Answers to these questions will decide what stand one could take in this case.

Like in the absence of a resignation acceptance, the company could take a stand that you have deserted employment. But if they have formally accepted your resignation and have issued you a proper Relieving Letter and given you the full and final settlement, the entire episode could look quite different.

Apart from the questions raised here, one would also like to know IF you were aware (at least at the time you resigned) of any obligatory Notice Period requirement? If yes, have you adhered to it? And if no, why were you not aware of it?

Your query is complicated and demands all of the factual data regarding your employment before a position on the issue could be taken.

Would you like to do that?

Consider.

Regards,

Samvedan

October 20, 2013

1) Did you have a formal appointment letter when you joined the said previous organization?

Yes, I have the appointment letter.

2) When (on what day) did you join that organization?

I joined on 13th December 2012 and left on May 12, 2013.

3) At the time of leaving, were you on probation or were you a confirmed employee?

Yes, I was on probation.

4) Were you away on medical grounds with the company's knowledge and approval? How long were you away on medical grounds?

I directly sent a resignation to my manager with health reasons. After that, he asked for my reports. I scanned them and mailed them to him. Lastly, I received a reply, "OK, TAKE CARE. GOODBYE!!!"

5) What was the Notice Period you were obliged to give upon resigning? On probation and after confirmation?

I didn't serve my notice period. But yes, I was in the notice period, and as per company policy, I needed to submit my notice period of 15 days, which I didn't.

6) Why did you have to resign through email? Or is that the standard practice in that organization? Were you employed in the manufacturing or IT industry?

It's an IT industry, but due to my health problem, I won't be able to go out from home.

7) Do you have any document to show that the organization has INDEED accepted your resignation?

As per the last email "OK, goodbye" and the letter which I received from them 2 days back for recovery, my Date of resignation is mentioned as 12th May 2013.

8) Did you receive your full and final settlement of employment dues?

No, after 12th May, I neither received any letter nor any mail. As I said, I left on 12th, I didn't receive any salary until 12th May. Neither did I ask.

Legally speaking, "Take care, goodbye" is just a statement of expression. It cannot be considered as acceptance of resignation or a relieving letter. (Since you communicated your position and they acknowledged receipt, they cannot say that you are an absconder).

Mere mention of the date of resignation doesn't mean you have been relieved.

If your offer letter has a penalty clause (payment) in the absence of a 15-day notice period, the company can ask for one month's salary. Generally, for civil matters, the limitation period is 3 years. Legally, they have the right to send notice after 6 months.

On the other hand, you worked for 12 days in May. The company can adjust your one month's salary against this and ask you to pay 18 days' salary. You would have also accumulated 5 months of PF. If I am correct, they cannot withhold your PF.

Some might advise you to take it to court. It won't solve the issue. You will end up paying more money by taking frequent time off from your new employer to attend court and paying the lawyer (even a compassionate lawyer would charge a minimum of Rs. 500 per hearing). At the end of it, there is no assurance that you will win.

As Samvedan has said, it would be better if you could meet with the company's senior people, explain your position, and obtain a proper relieving letter. This would be helpful in the long run.

Dear Friend,

There is nothing to worry about; maybe someone has just sent you this letter to avoid a pending salary claim. Generally, in a probation notice period clause, it is not applicable. But even if it is, your letter states only 15 days.

You have to decide if you wish to have an experience letter and final settlement, as there may be some leave pay and PF amount also. In that case, you may be a net earner, so go and settle the account. Otherwise, if you feel these things are not required and you have already secured a job, you may just forget it and write a letter to the company. In this letter, you must mention the following details: 1. Your resignation was accepted (attach a copy of the email). 2. The notice period was only 15 days. 3. You were not confirmed by the company and still on probation. As per the law, the probation is not over until the company provides you with a confirmation letter. 4. Ask them to settle your final account and pay any dues at the earliest.

Send this letter by registered post with acknowledgment due and just forget about it. No company goes to court with this type of case as they don't have any solid grounds to win.

I hope this will diffuse your tensions. Take care of your new job properly, and next time, do not leave the service in this manner.

With best wishes.

As Navneet has said, no company goes to court with this type of case as they don't have any solid grounds to win because it is a costly affair for the company as well as for you.

It would be better if you can meet with the company's senior people, explain your position, and get a proper relieving letter. This would be helpful in the long run.

Regards,
V K Pandey

Dear Friend,

I hope that in your appointment letter, they must mention that during your probationary period, you are required to serve a 15-day notice or make a payment in lieu of the notice period. On the other hand, management can terminate your service without giving any notice or payment in lieu of notice. If these terms are mentioned in your appointment letter, you need not worry about your resignation or any threatening letters because the appointment letter is an agreement between the employer and employee. Any terms and conditions should hold in the court of law.

Regarding the withdrawal of your PF, no one can withhold your PF. Just fill out Form 19-C, get it attested from a bank manager where your account is held, and send it to the concerned PF Department with a canceled cheque. The PF Department will handle the rest of the formalities through your employer.

In the future, be careful because one should not spoil the relationship with a previous employer. This type of attitude can harm your career.

Reg

Kamal Datta

78386 75321

Again, it is fine for you. Just be happy always. Nothing is going to happen.