Fixed Term Contract Extended without Approval - employer says that I have to serve two months of the notice period

Fixed-term contract ends on a specific date. If an employee wants to exit before the contract, then have to serve 2-months notice period.

Just 5 days before contract termination, the employer extended the contract, and I declined it.

But now the employer says that I have to serve two months of the notice period, and the employer extending the notice period (even when I declined the extension and a week before mentioned not to extend the contract) means that I am not exiting before the contract.

Now, the employer says they are not officially relieving me.

Please advise.

Check the document attached.

FTC cannot be extended without mutual agreement/ consent. Therefore, if the employee has not accepted the communication extending the fixed term contract, the contract will come to an end on the date mentioned in the original contract. the employee can just walk out of the office on that date. If the employer is not relieving, then it is a case to be reported to the concerned officer, ie, the Labour Officer. If the employee does not come under the scope of Industrial Disputes Act, then approach the Court saying that your contract of employment has come to an end and the employer is not relieving, and also mention that the employer is taking advantage of the notice period clause by extending the contract unilaterally. You can also get an injunction against the said action of the employer. If you did not have any supervisory role, you can just ignore the renewal letter but take the help of Labour officer to get the required certificates etc from the employer.

Hi, From the information provided, we have to consider the following key points:

Fixed-Term Contract Ends Automatically—Clause 8 states that your contract automatically stands terminated at the end of the fixed term unless extended.

Notice Period Applies Only If You Exit Before the Contract Ends—Clause 9 mentions that a 60-day notice or salary in lieu is required only if you leave before the contract period ends.

Employer Can Extend the Contract at Their Discretion—Clause 10 states that the employer can extend the contract by issuing a letter of extension. However, it does not say that the employee must accept the extension.

Why the Employer’s Claim is Unfair:

You Did Not Exit Before the Contract Ended—Your employment automatically ended on the fixed term end date, so the 2-month notice period is not applicable.

You Rejected the Extension Beforehand—Since you informed them a week before that you do not wish to extend the contract, they cannot force you to serve an additional notice period.

Employer Cannot Unilaterally Extend the Notice Period—If your contract ends naturally, the employer has no right to impose an additional notice period.

Recommended Next Steps:

Send a Formal Email/Letter

State that your contract ended automatically on the specified date.
Mention that you had already declined the extension before the contract expired.
Politely ask them to issue an official relieving letter as per the contract terms.
Seek Legal Support (If Needed)

If the employer refuses to relieve you, consult a labor lawyer.
You can also approach the Labour Commissioner’s Office for dispute resolution.

Communicate with Your New Employer:
If your new employer requires a relieving letter, you can explain the situation and share a copy of your contract.
Your appointment letter and last working date in the contract should be enough proof that your employment ended.

Your employer’s demand for a notice period after your contract already ended is invalid. They cannot refuse to relieve you based on this. If they continue to delay your relieving letter, you can take legal action.

The contract stands valid on acceptance by the other party.
The second party is free to accept the contract or reject.
You continue till the final date and leave, send a lawyers notice.