Hello all,
Could you please tell me what legal action a company can take if I don't want to serve the notice period?
My case:
I have joined an organization two months back, and now I'm finding it difficult to work here. I want to leave this organization without serving the notice period, which is 6 months. I am in the probationary period of 12 months. The company says that they have the right to recover 6 months' salary if the notice period is not served. I don't have that much money (2.5 lakhs) to pay, and I don't want to serve the notice period as I have received a job offer from another company, and they want me to join within one month.
Please suggest to me what I should do now.
What will happen if the company takes legal action, and what kind of actions can a company take in this situation?
From India, Hyderabad
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2Could you please tell me what legal action a company can take if I don't want to serve the notice period?
My case:
I have joined an organization two months back, and now I'm finding it difficult to work here. I want to leave this organization without serving the notice period, which is 6 months. I am in the probationary period of 12 months. The company says that they have the right to recover 6 months' salary if the notice period is not served. I don't have that much money (2.5 lakhs) to pay, and I don't want to serve the notice period as I have received a job offer from another company, and they want me to join within one month.
Please suggest to me what I should do now.
What will happen if the company takes legal action, and what kind of actions can a company take in this situation?
From India, Hyderabad
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Dear Sir,
In my opinion, you cannot be legally bound to pay in the absence of a bond to pay or serve with the company. Your absence can, however, be treated as 'unauthorized' by the company with consequences like punishment. In case you have entered into a bond, you may be sued to pay the same to the company.
From India, Mumbai
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In my opinion, you cannot be legally bound to pay in the absence of a bond to pay or serve with the company. Your absence can, however, be treated as 'unauthorized' by the company with consequences like punishment. In case you have entered into a bond, you may be sued to pay the same to the company.
From India, Mumbai
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I didn't sign any bond; it was just written in the appointment letter. It was also stated that you are in a probationary period, and after evaluation, if the company finds your performance unsatisfactory, they can terminate your employment at any time, with or without notice. So, if the company can terminate during the probation period, then why can't I?
From India, Hyderabad
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From India, Hyderabad
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Dear all,
I have a slightly different situation but with a similar context. I joined the company on 30th August 2010. I have now submitted my resignation (in writing) on 28th February 2011. Regarding the Probation Period, Contract Term, and Notice period, my Appointment letter reads as follows:
"Probation Period 6 months from Date of Joining
Upon successful completion of your probation period, your services will stand confirmed automatically. In case of any extension in the probation, you will be appropriately informed in writing.
Contract Term and Notice Period This is an at-will employment and may be terminated at any time
i) by giving 1 month advance notice, in writing, during the probation period or payment in lieu thereof to the other party or by giving 2 (two) months advance notice, in writing, after the successful completion of the probation period or payment in lieu thereof to the other party; based on management approval.
ii) If in the reasonable opinion of the Company you are guilty of serious misconduct, the Company may terminate your employment summarily without notice and any payment thereof. Serious misconduct includes, but is not limited to, dishonesty, theft, misrepresentation, breach of the Substance Abuse Policy; refusal to obey a reasonable command of the Company or breach of the Code or Code and applicable laws."
Now, I have the following queries:
1. Am I still on the probation period, and therefore, is my notice period applicable 1 month?
2. I need to join my new company within 15 days and have requested early relieving. However, they are unwilling to release me early even though I am prepared to buy out the notice period. Additionally, my current employer is not willing to extend the joining date. In this case, what can be done?
3. If I leave the company without serving the complete notice period, could it be legally objectionable and lead to legal action against me?
4. My new employer's HR is willing to accept my joining with just the acceptance of the resignation letter and does not necessarily require a relieving letter. Would it be legally and professionally correct to follow this route?
5. What are the chances of the old company holding and not transferring my PF amount, which is quite significant?
I hope to receive guidance on these matters soon.
Thank you.
From India
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I have a slightly different situation but with a similar context. I joined the company on 30th August 2010. I have now submitted my resignation (in writing) on 28th February 2011. Regarding the Probation Period, Contract Term, and Notice period, my Appointment letter reads as follows:
"Probation Period 6 months from Date of Joining
Upon successful completion of your probation period, your services will stand confirmed automatically. In case of any extension in the probation, you will be appropriately informed in writing.
Contract Term and Notice Period This is an at-will employment and may be terminated at any time
i) by giving 1 month advance notice, in writing, during the probation period or payment in lieu thereof to the other party or by giving 2 (two) months advance notice, in writing, after the successful completion of the probation period or payment in lieu thereof to the other party; based on management approval.
ii) If in the reasonable opinion of the Company you are guilty of serious misconduct, the Company may terminate your employment summarily without notice and any payment thereof. Serious misconduct includes, but is not limited to, dishonesty, theft, misrepresentation, breach of the Substance Abuse Policy; refusal to obey a reasonable command of the Company or breach of the Code or Code and applicable laws."
Now, I have the following queries:
1. Am I still on the probation period, and therefore, is my notice period applicable 1 month?
2. I need to join my new company within 15 days and have requested early relieving. However, they are unwilling to release me early even though I am prepared to buy out the notice period. Additionally, my current employer is not willing to extend the joining date. In this case, what can be done?
3. If I leave the company without serving the complete notice period, could it be legally objectionable and lead to legal action against me?
4. My new employer's HR is willing to accept my joining with just the acceptance of the resignation letter and does not necessarily require a relieving letter. Would it be legally and professionally correct to follow this route?
5. What are the chances of the old company holding and not transferring my PF amount, which is quite significant?
I hope to receive guidance on these matters soon.
Thank you.
From India
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Hi Dusgoyal,
The answers to your queries go like this:
1. If you joined on 30th August, then your probation period is over, and as per the clause, you automatically become permanent in the organization, so the notice period is 2 months.
2. If you are ready to buy back your notice period, why the company is not relieving you is not mentioned in your post. Is it because they want you to hand over things properly? Request early relieving; that is the only option.
3. If you are ready to buy back your notice period, I don't think that can lead to anything legal.
4. It is perfectly fine if you have a copy of the acceptance of your resignation letter. Most companies accept that. I think both legally and professionally, it's fine as the resignation letter has the acceptance of your manager. But in the long term, you may require an experience certificate.
5. PF cannot be stopped by any organization; it is your legal right. If the employer does not sign your PF form, you can submit it directly at the PF office in your area, and it will be transferred to your new PF account.
Make sure not to run away from problems in the organization. You never know; you may come across the same problems here in this company. What will you do then? Leave this company as well? Think about it. Job hopping may not help in the long run.
Regards,
Archna
From India, Delhi
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The answers to your queries go like this:
1. If you joined on 30th August, then your probation period is over, and as per the clause, you automatically become permanent in the organization, so the notice period is 2 months.
2. If you are ready to buy back your notice period, why the company is not relieving you is not mentioned in your post. Is it because they want you to hand over things properly? Request early relieving; that is the only option.
3. If you are ready to buy back your notice period, I don't think that can lead to anything legal.
4. It is perfectly fine if you have a copy of the acceptance of your resignation letter. Most companies accept that. I think both legally and professionally, it's fine as the resignation letter has the acceptance of your manager. But in the long term, you may require an experience certificate.
5. PF cannot be stopped by any organization; it is your legal right. If the employer does not sign your PF form, you can submit it directly at the PF office in your area, and it will be transferred to your new PF account.
Make sure not to run away from problems in the organization. You never know; you may come across the same problems here in this company. What will you do then? Leave this company as well? Think about it. Job hopping may not help in the long run.
Regards,
Archna
From India, Delhi
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Hello all,
Could you please help me with my situation? I joined a consultancy on 1st March 2012 and signed an appointment letter stating that my notice period is one month. Now, I have received a job offer from another company and I wish to serve only one week of the notice period. I am willing to buy out the remaining notice period and have already prepared my backup to take over my responsibilities. Despite these efforts, my current company is not willing to reduce my notice period.
What should I do in this scenario? Please provide me with some guidance.
Regards,
Kawal
From India, Delhi
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Could you please help me with my situation? I joined a consultancy on 1st March 2012 and signed an appointment letter stating that my notice period is one month. Now, I have received a job offer from another company and I wish to serve only one week of the notice period. I am willing to buy out the remaining notice period and have already prepared my backup to take over my responsibilities. Despite these efforts, my current company is not willing to reduce my notice period.
What should I do in this scenario? Please provide me with some guidance.
Regards,
Kawal
From India, Delhi
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Hello All,
My case is a bit different.
I resigned from a reputed bank wherein I was required to serve a notice period of 90 days. I resigned on 11/10/2012 and asked them to relieve me at the earliest - that is what I have in writing. Post which, my supervisor asked me how many days I can serve for. I told him I can serve for a month, i.e., till 11/11/2012, i.e., 32 days. He told me they would relieve me before that, mostly by 31/10/2012. Post which, I asked him whether I would be required to pay notice pay since I had accumulated PL of 43 days. Plus, my notice period served would be 21 days, hence 26 days notice would be pending. He confirmed that he would waive it, and I would not be required to make any payment for it, nor would I require to adjust salary in lieu of notice pay. Because ideally if I were to pay, then I would rather serve for 32 days and pay only for 15 days and not serve for 21 days and pay for 26 days as they said. Since they confirmed that they would waive the pay, I accepted the same, and my LWD was 31/10/2012. I didn't receive my October month's salary and hence mailed the HR to process my F & F, and I have got a mail from them saying my dues of 26 days are pending, and they would not process the F & F if I do not pay the same.
What should I do?
Anuja
From India, Mumbai
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My case is a bit different.
I resigned from a reputed bank wherein I was required to serve a notice period of 90 days. I resigned on 11/10/2012 and asked them to relieve me at the earliest - that is what I have in writing. Post which, my supervisor asked me how many days I can serve for. I told him I can serve for a month, i.e., till 11/11/2012, i.e., 32 days. He told me they would relieve me before that, mostly by 31/10/2012. Post which, I asked him whether I would be required to pay notice pay since I had accumulated PL of 43 days. Plus, my notice period served would be 21 days, hence 26 days notice would be pending. He confirmed that he would waive it, and I would not be required to make any payment for it, nor would I require to adjust salary in lieu of notice pay. Because ideally if I were to pay, then I would rather serve for 32 days and pay only for 15 days and not serve for 21 days and pay for 26 days as they said. Since they confirmed that they would waive the pay, I accepted the same, and my LWD was 31/10/2012. I didn't receive my October month's salary and hence mailed the HR to process my F & F, and I have got a mail from them saying my dues of 26 days are pending, and they would not process the F & F if I do not pay the same.
What should I do?
Anuja
From India, Mumbai
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Dear All,
The company cannot do anything to you if you find a good opportunity elsewhere. You can leave the company without any notice. One can do anything to you legally or illegally. Just be confident in yourself. If you have signed any bond, nothing will happen. It's all about formalities. You can break the bond.
Don't miss the opportunity. If you miss it, then it will transfer to someone else.
Regards,
Alam
9676771014
From India, Hyderabad
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The company cannot do anything to you if you find a good opportunity elsewhere. You can leave the company without any notice. One can do anything to you legally or illegally. Just be confident in yourself. If you have signed any bond, nothing will happen. It's all about formalities. You can break the bond.
Don't miss the opportunity. If you miss it, then it will transfer to someone else.
Regards,
Alam
9676771014
From India, Hyderabad
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Sir, I joined Coal India Limited on 18th September 2010. I have to serve the company for 50 months with a security bond amount of Rs. 50,000. (We have signed this bond, so Rs. 1,000 was deducted per month).
In March 2012, they introduced a new bond circular according to which we have to now serve for 60 months with a security bond amount of Rs. 3 lakhs. (We have not signed this bond, but this bond is applicable to all of us, and Rs. 5,000 per month is started to deduct from our salary). Our basic pay is revised and increased after this circular.
On 17th September 2015, I am going to complete my 60 months of service. Unfortunately, in 2013, I was not able to work for 8 months due to illness. For those months, extraordinary leave was granted to me without pay as I had no leave at that time.
I am now selected in the Engineering Services Examination. Therefore, I have submitted my resignation to the company with a 3 months' notice, which will be completed on 17th November 2015.
I submitted an application to them regarding my resignation, stating that I am going to complete my 60 months of service in September 2015. Therefore, I requested a refund of my deducted bond amount. However, they refused, stating that I have not completed the bond period of 60 months due to the extraordinary leave without pay granted to me. So now, I have to pay the remaining bond amount to the company.
Sir, I want to know if extraordinary leave without pay will be considered as a part of the bond period or not. I have not found any guidelines or circular regarding this. Please help.
From India, undefined
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In March 2012, they introduced a new bond circular according to which we have to now serve for 60 months with a security bond amount of Rs. 3 lakhs. (We have not signed this bond, but this bond is applicable to all of us, and Rs. 5,000 per month is started to deduct from our salary). Our basic pay is revised and increased after this circular.
On 17th September 2015, I am going to complete my 60 months of service. Unfortunately, in 2013, I was not able to work for 8 months due to illness. For those months, extraordinary leave was granted to me without pay as I had no leave at that time.
I am now selected in the Engineering Services Examination. Therefore, I have submitted my resignation to the company with a 3 months' notice, which will be completed on 17th November 2015.
I submitted an application to them regarding my resignation, stating that I am going to complete my 60 months of service in September 2015. Therefore, I requested a refund of my deducted bond amount. However, they refused, stating that I have not completed the bond period of 60 months due to the extraordinary leave without pay granted to me. So now, I have to pay the remaining bond amount to the company.
Sir, I want to know if extraordinary leave without pay will be considered as a part of the bond period or not. I have not found any guidelines or circular regarding this. Please help.
From India, undefined
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I resigned from my current organization on 08/18/2015. My last working day (after adjustment of leaves) is turning out to be 10/06/2015. However, I want to be relieved on 09/25/2015 as I have to join a different organization on 09/28/2015. So I went to my manager and HR seeking the option of buying out the remaining days of the notice period (11 days). However, both my manager and HR declined my request and informed me that I would have to serve the complete 60 days of the notice period, and my LWD would remain 10/06/2015, else I would not receive my relieving letter.
My offer letter contains the following provisions regarding Separation from the company:
9. Separation from the company
a. The retirement age of the Company is 58 years. At the time of formally resigning from service, you shall serve the 60 days of Notice Period.
b. When you formally resign from the service of the Company, the Company may, at its discretion, permit you to
i. Adjust the vacation leave accumulated toward part of the notice period.
ii. Pay up for the notice period in lieu thereof on your Annual Gross Compensation.
c. If your services are terminated by the Company due to misdemeanor, unsatisfactory performance, or any other disciplinary matter, the Company will pay your salary for the Notice Period starting from the date on which the Company informs you of such matter. If the termination of services is for reasons mentioned in 1 (a) above, no salary is payable for the Notice Period.
Question: Is my manager and HR right in saying that I don't have an option of buying out my notice period and it is their choice to decide how they want me to leave, i.e., either by buying out or serving the full notice period?
What options do I have as an employee in this situation? Can the labor court help me with this? All suggestions are welcome. Thanks.
From India, Delhi
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My offer letter contains the following provisions regarding Separation from the company:
9. Separation from the company
a. The retirement age of the Company is 58 years. At the time of formally resigning from service, you shall serve the 60 days of Notice Period.
b. When you formally resign from the service of the Company, the Company may, at its discretion, permit you to
i. Adjust the vacation leave accumulated toward part of the notice period.
ii. Pay up for the notice period in lieu thereof on your Annual Gross Compensation.
c. If your services are terminated by the Company due to misdemeanor, unsatisfactory performance, or any other disciplinary matter, the Company will pay your salary for the Notice Period starting from the date on which the Company informs you of such matter. If the termination of services is for reasons mentioned in 1 (a) above, no salary is payable for the Notice Period.
Question: Is my manager and HR right in saying that I don't have an option of buying out my notice period and it is their choice to decide how they want me to leave, i.e., either by buying out or serving the full notice period?
What options do I have as an employee in this situation? Can the labor court help me with this? All suggestions are welcome. Thanks.
From India, Delhi
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Hi,
I resigned from my current organization on 08/18/2015. My last working day (after adjustment of leaves) is turning out to be 10/06/2015. However, I want to be relieved on 09/25/2015 as I have to join a different organization on 09/28/2015. So I went to my manager and HR seeking the option of buying out the remaining days of the notice period (11 days). However, both my manager and HR declined the option of buying out the notice period and informed me that I would have to serve the complete 60 days of the notice period, and my last working day would remain 10/06/2015, else I would not receive my relieving letter. My offer letter includes the following statements:
9. Separation from the company
a. The retirement age of the company is 58 years. At the time of formally resigning from service, you shall serve the 60 days of notice period.
b. When you formally resign from the service of the company, the company may, at its discretion, permit you to
i. Adjust the vacation leave accumulated toward part of the notice period.
ii. Pay up for the notice period in lieu thereof on your annual gross compensation.
c. If your services are terminated by the company due to misdemeanor, unsatisfactory performance, or any other disciplinary matter, the company will pay your salary for the notice period starting from the date on which the company informs you of such matters. If the termination of services is for reasons mentioned in 1(a) above, no salary is payable for the notice period.
Question: Is my manager and HR correct in stating that I don't have the option of buying out my notice period, and it is their choice to decide how they want me to leave, i.e., either by buying out or serving the full notice period?
What options do I have as an employee in this situation? Can the labor court help me with this? All suggestions are welcome. Thanks.
From India, Delhi
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I resigned from my current organization on 08/18/2015. My last working day (after adjustment of leaves) is turning out to be 10/06/2015. However, I want to be relieved on 09/25/2015 as I have to join a different organization on 09/28/2015. So I went to my manager and HR seeking the option of buying out the remaining days of the notice period (11 days). However, both my manager and HR declined the option of buying out the notice period and informed me that I would have to serve the complete 60 days of the notice period, and my last working day would remain 10/06/2015, else I would not receive my relieving letter. My offer letter includes the following statements:
9. Separation from the company
a. The retirement age of the company is 58 years. At the time of formally resigning from service, you shall serve the 60 days of notice period.
b. When you formally resign from the service of the company, the company may, at its discretion, permit you to
i. Adjust the vacation leave accumulated toward part of the notice period.
ii. Pay up for the notice period in lieu thereof on your annual gross compensation.
c. If your services are terminated by the company due to misdemeanor, unsatisfactory performance, or any other disciplinary matter, the company will pay your salary for the notice period starting from the date on which the company informs you of such matters. If the termination of services is for reasons mentioned in 1(a) above, no salary is payable for the notice period.
Question: Is my manager and HR correct in stating that I don't have the option of buying out my notice period, and it is their choice to decide how they want me to leave, i.e., either by buying out or serving the full notice period?
What options do I have as an employee in this situation? Can the labor court help me with this? All suggestions are welcome. Thanks.
From India, Delhi
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Dear Friends,
I am working with a company that has not paid me and many others for the last 6 months. They are paying us very small amounts every month. Actually, the company itself is in crisis, but due to all this, my more than six months' salary has been held up in the company. Now, I want to resign, but the company wants me to give a 1-month notice. I don't have the option of giving them notice because I would miss the next opportunity, which requires immediate joining. Therefore, I plan to submit a resignation effective immediately, without specifying any notice period. Moreover, in both my offer letter and appointment letter issued 10 years ago, there is no mention of a notice period requirement.
Can they harm me legally? The senior management is threatening everyone who resigns, and some people, out of fear, end up giving the notice period. However, in my situation, I cannot provide the notice as mentioned above. Could they withhold my dues and relieving letter if I don't serve the notice period? Please advise.
Rajkumar
From India, Lucknow
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I am working with a company that has not paid me and many others for the last 6 months. They are paying us very small amounts every month. Actually, the company itself is in crisis, but due to all this, my more than six months' salary has been held up in the company. Now, I want to resign, but the company wants me to give a 1-month notice. I don't have the option of giving them notice because I would miss the next opportunity, which requires immediate joining. Therefore, I plan to submit a resignation effective immediately, without specifying any notice period. Moreover, in both my offer letter and appointment letter issued 10 years ago, there is no mention of a notice period requirement.
Can they harm me legally? The senior management is threatening everyone who resigns, and some people, out of fear, end up giving the notice period. However, in my situation, I cannot provide the notice as mentioned above. Could they withhold my dues and relieving letter if I don't serve the notice period? Please advise.
Rajkumar
From India, Lucknow
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Hi,
I am Rohit. I have joined an E-commerce organization on 11th April '16, and I am under a probation period of 4 months. I have just signed an offer letter of 1 page, in which it was mentioned that the notice period is 1 month during the probation period. If, in any case, the notice period is not served, then you are bound to pay 1 month's salary to the company.
Now, today I have resigned and I don't want to serve the notice period because I have to prepare for my exams commencing from 1st June. The company owner has threatened me by saying if I don't serve the notice period or reimburse 1 month's salary, then they will take legal action against me.
I am a bit scared right now and I am wondering if they are authorized to do that because I have not signed any bond or contract, and I am under probation. Tomorrow, I'll be completing 1 month here.
Please advise, can they take legal actions against me? If yes, what can be the repercussions?
Thanks in anticipation.
From India, Noida
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I am Rohit. I have joined an E-commerce organization on 11th April '16, and I am under a probation period of 4 months. I have just signed an offer letter of 1 page, in which it was mentioned that the notice period is 1 month during the probation period. If, in any case, the notice period is not served, then you are bound to pay 1 month's salary to the company.
Now, today I have resigned and I don't want to serve the notice period because I have to prepare for my exams commencing from 1st June. The company owner has threatened me by saying if I don't serve the notice period or reimburse 1 month's salary, then they will take legal action against me.
I am a bit scared right now and I am wondering if they are authorized to do that because I have not signed any bond or contract, and I am under probation. Tomorrow, I'll be completing 1 month here.
Please advise, can they take legal actions against me? If yes, what can be the repercussions?
Thanks in anticipation.
From India, Noida
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I had signed a service agreement for two years, stating a 30-day notice period. The appointment letter states that the appointment is governed by company policies, which are liable to change. The company policy has changed to a 90-day notice period. Since I am still under the service agreement, what would be applicable - 30 days or 90 days?
From India, Delhi
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From India, Delhi
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Terms and conditions of appointment letters cannot be changed at the whims of the employer. If the employer wants to change any condition of service, then proper notice has to be given regarding the same, and such new terms have to be accepted by the employee also.
Service agreements do not hold much value; hence, you will be guided by the notice period as stipulated in the appointment letter unless you have agreed to a change in the notice period (90 days) at a later stage.
Check out my blog at www.labourlawhub.com
From India, Kolkata
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Service agreements do not hold much value; hence, you will be guided by the notice period as stipulated in the appointment letter unless you have agreed to a change in the notice period (90 days) at a later stage.
Check out my blog at www.labourlawhub.com
From India, Kolkata
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