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I discussed about my resignation with my manager yesterday; today i got a confirmation that i can be relieved in a week's time by paying 2 month's gross salary (claimed to be the company policy). I replied back to them stating i would check the conditions stated in the offer letter & revert back. However there in no mention about the employee resigning; 2 months salary pay off been mentioned only if in case of termination of the employee. I understand that only basic salary needs to be paid in such circumstances...asking for the gross salary is too demanding by the company...PLS HELP
From India, Bangalore
One needs to know the exact wording of termination/separation clause in your appointment letter/confirmation letter before one can tender proper advice.
Employment being a contract of employment, "existing practices" and "custom" in the company has NO value.
However the amployers can (and many od them often do) act arbitrarily as most employees have no time or inclination to pur up a fight. It is another story if the employee who wants to leave is a "workman" under Industrial Disputes Act 1947
If you care to share details, many on the forum will tender correct advice!
July 18, 2011

From India, Pune
Thanks for your reply..pls find the mention about the resignation clauses in the offer letter in the attachment...
From India, Bangalore

Attached Images
File Type: bmp salary.bmp (738.1 KB, 70 views)


It is clear from the information provided by you that you are under an obligation to give TWO months NOTICE if you resign the employment. During the notice period you have no right to even take leave at your credit, without express permission.

The company MAY at its SOLE DESCRITION, relieve you earlier. The resignation becomes effective from the date of receipt of the same by the company. Therefore if the company agrees, let us say, ten days after you submitted resignation, to relieve you early, then it will pay you for the ten days you have worked but insist upon you buying out the notice period. The company has agreed in your case to your buying the notice period. And then the company has asserted its right to terminate your emloyment. We need not go into that at this stage.

From facts given it is clear that the company CAN (if it so decides) relieve you earlier than the due period, in which case you have to buy out the entire notice period and the company will pay you for the period you have worked after submitting resignation.

In as much as you are a party to these provisions of the contract of employment, you have to abide by the same.

The company apparently acting within the contract.

Now you take a decision as is most applicable in your situation.



July 19, 2011


From India, Pune
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