Company asking to pay for Notice period shortfall based on India policy where I had resigned in Australia

Dear Team,

I worked for an Indian MNC that sent me onsite to Melbourne on a 457 visa. During the last few months here in Melbourne, there was no project, and the expected project start did not materialize. Consequently, they decided to release me from my position.

Upon my resignation from the company in Melbourne, the Project Account, where I was previously allocated, refused to give me any work allocation for the remaining days of the month. As a result, the local HR in Melbourne adjusted my onshore leave days and released me from the company within 9 days. This is in contrast to the onsite notice period of 30 days, but it was entirely their decision, not mine, to release me earlier.

Subsequently, the HR team in India sent me an email requesting payment for the 81-day notice period shortfall. In response, I clarified in an email that the decision to release me early was made by the project account, not by me, so I questioned my liability for the payment.

Just yesterday, they sent me a document demanding a significant amount, which includes the 81-day notice period shortfall and some additional charges. They stated that upon payment, they would release my relieving letter and related documents.

I seek your advice on how to proceed in this situation. Thank you.

Dear friend,

Even though you were deputed on site to Australia, the terms and conditions of your employment were strictly as per the original and existing contract of employment between the Country Unit of the MNC and yourself unless otherwise specific modifications, if any, in the event of on-site deputation are provided therein.

Thank you, Umakanthan, for the reply.

In my deputation letter that was given to me before I came to Australia, it was mentioned that we shall be following all the policies of Australia for that company. In the India policy of separation, it is also clearly mentioned that if an employee requests an early release, he/she is liable to pay the notice period shortfall.

In that case, what would be your suggestion?

Sorry, I have no knowledge about temporary employment visas to work abroad. At the same time, out of common sense, I may observe that being under an employer-sponsored temporary visa and knowing well that you are likely to be released for want of work, how you took the decision to resign? Chances for the presumption are there that you might have got some other alternative employment in Australia itself. The separation conditions of the Australian unit might be applicable to the locally recruited and appointed employees only in view of no expenses towards visa sponsorship and travel incurred by the Indian MNC. The Melbourne HR manager might have just mechanically processed your resignation and acted upon. At least you could have clarified the position with your Indian HR before tendering resignation. Negotiate with your Indian MNC for waiver of certain exit conditions as a special case.