Stuck in a 90-Day Notice Period: Can I Legally Challenge My Employer's Refusal for a Buyout?

Dear Sir/Madam,

Recently, I came across an offer that required the candidate to join within 30 days. According to the offer letter, the notice period in my current company is 90 days. I am willing to pay the salary in lieu of the notice period shortfall. However, my supervisor is reluctant to release me and insists I serve the full 90-day notice, threatening to label me as absconding otherwise. I have read various posts on this website regarding a similar issue, and the consensus among experts seems to lean towards employees not having a strong position in such cases.

Offer Letter Specifications

My offer letter specifies, "After the expiry of your probation period, should you decide to leave our employment for reasons other than retirement, you must provide us with three months' written notice. In case the company decides to terminate your employment, they will also give you three months' written notice. The company also reserves the right to make a payment in lieu of notice concerning the Total Fixed Pay."

Upon reviewing my company's policies thoroughly, I noted a clause on voluntary unemployment. It states that if an employee fails to report to the office continuously for seven days, the company may accept payment for the remaining days as a full and final settlement. Doesn't this contradict their stance on issuing an absconding warning if I fail to report to the office after serving 30 days' notice?

My Questions

1) In India, for a contract to remain valid and not become null and void, it must be enforceable by both parties equally. Therefore, if a company can make a payment in lieu of notice, shouldn't employees have the same right? Can we legally challenge a company on this basis?

2) Despite sending several letters to the management requesting, as a good HR practice, the option to buy back two months' notice, I have not received any response. Is it conceivable that even after a full and final settlement (where money is accepted for days not served or assets held by the individual), the company may choose not to issue a relieving letter?

Your guidance on this matter would be greatly appreciated.

Thank you and regards,

Clarification Needed on Relieving Letter Requirement

If my new company is ready to take me on board without having acceptance of my resignation from my present company, do I really require a relieving letter from this company? Documents to prove my association with this company for the future include: offer letter, the last three months' salary slips, increment letter, resignation mails, and handover mails. In the future, if I switch to another company, do I need to submit the previous company's relieving letter, or can any document from the above, such as resignation mail + salary slips or increment letter, suffice? Kindly advise.

Thanks and regards,

In India, a contract is valid as per the Indian Contract Act of 1872. For your reference, a judgment is given on considering the appointment letter to be valid.

Suppose an employee is given an offer letter and accepts it. Once they join, if the employer asks them to sign a bond for 1 lakh rupees to continue employment, the court may view this as undue influence since the employee has resigned from their previous job and has no other option but to agree to the employer's terms and conditions. Therefore, the outcome in such cases depends on the facts and circumstances of the case.

An employment agreement is like a standard contract, where the employee can choose to accept the offer or not. After reading the terms and conditions of the appointment letter, the employee agrees to the employment with the employer, making it a valid consideration.

To resolve such situations, try to establish mutual understanding and negotiation with your management. If you cannot resolve it amicably, you may not have a legal standing. If the employer proceeds legally based on the terms and conditions of the appointment letter as mentioned by you, you could be considered in breach of the agreement.

You are right, an agreement cannot be lopsided. As far as my logic goes, you can challenge it in court.

1. It is advisable to have an uninterrupted chain of service documents to prove continuity or otherwise in service.

2. Beg or plead with your present management to accept money in lieu of the remainder notice period. Communication and persuasion might help you; just don't lose patience and humility.

3. Talk to your new employer about the facts of the case and convince them to postpone your appointment for another 2 months.

4. There is something called voluntary cessation of employment/duties. That happens when an employee goes unreported for a long time and does not respond to notices, etc. Should you want to follow this path, what about your relieving papers?

5. The best way to tackle a problem is to delve into it neck-deep. Never try to skirt the issue; that way, you court fresh trouble upon yourself and will always carry a muddied conscience.

Finally, there are a lot of things that are not seemingly right or even not legal in this world. The problem is, it takes time, energy, patience, resources, and willpower to conclude what is right and what is wrong. That is a question that individuals will have to ponder over and decide whether to force an issue or ignore and carry on making compromises along the way.

All the best.

Considerations Before Joining a New Company

Why are you in such a hurry to join a new company? When accepting the offer, you were aware of the 3-month notice period clause. Why didn't you inquire about a 3-month joining period? It would be advisable to request your new company to wait a little longer. It is always better to part ways amicably rather than escalating into a legal issue.