Madhu.T.K
Industrial Relations And Labour Laws
+1 Other

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Hi,

We have an employee in sales who resigned on will a week back. In feedback sessions, he cited reasons of better salary and wanted to start something of own. We tried to show him growth and negotiated on salary for a week. We even offered him salary expected, but then he cited his own business reason. In all these discussions, he mentioned that company should try and relieve him as soon as possible, so that he can take decision after taking a break.

This is from his resignation,



As discussed, please accept my formal resignation letter from xxxxxxxxx. I am tendering my resignation on xxxxxx and relieve me from my duties and responsibilities as soon as possible. I would request you to settle my accounts at the earliest.



xxxxx has been an amazing place to work and also a place for me to learn. Many thanks for giving me an opportunity to work on various campaigns, markets and numerous projects during this time.


After a week of trying when it all failed, we asked him to leave immediately. In the final process of exit, he suddenly started saying that we need to pay him for remaining unserved notice and that he is willing to come to office if required. He had already spoiled the environment to the extent that 2 other members junior to him also resigned. We were in a crisis situation and he then threatened of labor law. The appointment letter states..

(ii) Upon confirmation, your services are liable to be terminated by xxxx after providing you one month’s notice or payment of salary in lieu thereof. You shall also be bound to provide xxxxx with 1 month’s notice prior to resignation during which period you may have to actually work. The said notice period will not be adjustable either against privilege leave or forfeiture of salary.

(iii) If the exigencies of the work so require, xxxx, may not relieve you earlier than the expiry of the entire period of notice. It shall, however, be open to xxxx to accept your resignation with effect from any date earlier than the offered by you in your resignation letter. xxxx as such is fully authorized to relieve you at any time during the notice period and should xxxxx decide to do so, you shall be entitled to your gross salary, in lieu of the remaining period of notice.



It is clearly mentioned that only if we may choose we may pay him for remaining period, but otherwise can release him on any date. We are ready to pay till the date he served us. He says that he is willing to come to office and work. We even suggested him to work from home as an option and serve the notice as we do not want him to come to office and spread further negativity. He did not listen and thinks that it is his right which we have taken from him.

Things did not end here then his father being in some government employee, started threatening us for other law breaches not even related to case.

Can someone suggest if they even have a case or not?

From India, Delhi
Since he is ready to work during the notice period and whereas it is your (company) interest that he should be relived earlier, the company is bound to pay the salary for the rest of the period. There are lot of case laws which says that an employee is in a position to withdraw his resignation before the effective date, that is date of relieving. Therefore, in such cases where the employee is making a lot of bargaining or making or even instigating ( I would like to use the word instigation because you have stated that two others have also put their papers) others to follow him, it is good that he be relieved immediately by paying for the rest of the notice period.
Madhu.T.K

From India, Kannur
Dear DelhiBoyIndia,
Have you heard this term which is more often in practise... "Pay a Month" or "Serve a Month". This statement is mutually beneficial to the employer and Employee.
Well, as per the above situation, the organization has to pay for the above period. In case the organization is releiving regardless of employees interest in serving the notice period, "organization has to pay for the remaining period " as the appointment terms were primed by the company itself. Its conversely similair if the employee resigns beforehand.
Precisely, he resigned and wanted to serve notice but you have plump for termination of his services from immediate effect, so you have to shell out the notice pay. Considered on not settling the dues the employee can seek a labour officer.

From India, Visakhapatnam
Hi Guys,

Thanks for your responses. I have read multiple other posts on CiteHR and found mixed responses on the topic. Many have referred that all depends on the appointment letter which was signed in the end. In our case the letter states clearly that it is on company's option to pay someone for remaining period if they may choose to do so, but can still relieve someone earlier and not pay anything for remaining period.

The problem is multi folded as this employee has some influence and may start a chain of events for the company which will lead us to do this for all. We hence were trying to give him an option where he was told to work from home for remaining days and submit the work to get paid (even for name sake), but this option should be only on company's option to be provided to only selected employees and only if required.

I am confused on what and why the company should pay for the remaining period if he is not even working and this is not a termination case. We would rather like to then in this case give a termination letter to him and pay him balance rather than giving him proper relieving in this case. Please suggest.

From India, Delhi
I must also add that the employe is just trying to blackmail and take advantage of situation where he is willing to work only from office and has no genuine intentions in closing the matter in professional matter. We have told very clearly if he wants, he may work from home, but he has to prove that he worked and we don't then mind paying the salary for the remaining period. There is no question and certainly will not be allowed to enter premises of the office anymore.

I thin it was good solution offered on behalf of company, but the guy seems to not give up and threatening management has further escalated the matter where now they want to give him a letter of termination and bad reference in lieu if salary is needed to be paid.

I must ask you to refer his resignation mail in which he has not mentioned last date or relieving date that he is seeking and also it is clearly mentioned in the resignation mail asking us to relieve him earliest and settle his dues at the earliest.

Any suggestion or comments on these solutions or others are most welcome.

From India, Delhi
He is defying the employer to take a confront/ deal with him. If his intension is something to coerce or intimidate then I'm sure your option to work from home was great. Yet, make sure you seperate this person as soon as possible (reason that he could be a curmudgeon to other employees).
Ask him to provide you a proper resignation letter and accept the resignation quoting "Resignation accepted with immediate effect dated _____" (An employer can do that). Settle his dues till the releiving date with a proper exit interview.
If he still threatens, you can still tell him that employer can consult a conciliation officer, which might keep him awaited long time to get his final settlement done.
I hope this satisfies your query.

From India, Visakhapatnam
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