Short Notice Period - Can the current employer/company withhold his Full and Final Settlement?

Hello Members,

I have a query regarding the short notice period being served on the current employer.

One of my colleagues working in an MNC IT company for almost 8-9 years has received a prospective offer of employment from a Semi-Govt institute in the IT Department. The new employer has asked him to join within 10 days from the date of receipt of the offer of employment. With a request to extend the joining period, they have agreed to a 1-month extension. However, as per the current employer, my colleague is supposed to serve a 3-month notice.

My colleague has officially submitted his resignation through the online system (as per company policy) and also sent an official email serving a 1-month notice instead of a 3-month notice.

Q.1 - Can the current employer/company withhold his full and final settlement?
Q.2 - Can he stop attending duty after the last date of work as mentioned in the resignation letter?
Q.3 - If yes, will the company have the right to mark him as absconding for not serving the entire 3-month notice?
Q.4 - If yes, will the company have the right to terminate him from services despite officially submitting his resignation?
Q.5 - If yes, does the current employer have the right to hold his relieving and experience letter?
Q.6 - Does resigning with a short notice period fall under "misconduct"? If yes, what is the level of misconduct?
Q.7 - Can the current employer hold his PF/Gratuity settlement?
Q.8 - What is resignation buyout?

I hope my queries will receive a positive response.

The queries mentioned are answered below:

Q.1 - Can the current employer/company withhold his Full and Final Settlement? Yes. Since the employee has not served the notice period in full, the employer can validly hold any due payment pending a final decision in the matter.

Q.2 - Can he stop attending duty after the last date of work as mentioned in the resignation letter? It will not be a valid act.

Q.3 - If yes, will/does the company have the right to mark him Absconding for not serving the entire 3 months notice? If he is absent, then it will be considered abandonment.

Q.4 - If yes, will/does the company have the right to Terminate him from services despite officially submitting his resignation? Yes, it is quite possible. A resignation becomes effective only when it is accepted, and the employee is relieved. If the conditions of resignation are not fulfilled, the employer has the right to reject the resignation and proceed against the employee.

Q.5 - If yes, does the current employer have the right to hold his Relieving and Experience Letter? The employer has the right to mention that the employee's services were terminated due to abandonment.

Q.6 - Does resigning with a short notice period fall under "MISCONDUCT"? If yes, what is the level of Misconduct? The misconduct would be willful absence in such cases and not resigning without due notice.

Q.7 - Can the current employer hold his PF/Gratuity settlement? No, the employer has no right to hold PF or gratuity payment. For PF transfer, it is not necessary to obtain the employer's permission.

Q.8 - What is resignation buyout? Resignation buyout means the employee pays for the remaining notice period after serving a part of it. In this case, it would be salary for two months. But it is at the discretion of the employer to accept or reject the buyout option.

Hope the above clarifies.