Resignation Due To Non Payment Of Salary But Forced To Serve Notice Period - CiteHR
Saswatabanerjee
Partner - Risk Management
Scarletmist5
Sr. Exec

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I have been working with a company for almost 9 months now. They do not pay salaries regularly and they owe me about 4.5 months salary. I have resigned but they want me to serve notice period and are unwilling to adjust with pending salaries. Please advice.
Demand for the pay and have negotiation, strictly saying if they can not pay you will adopt legal means to get your pay...... yourself can send a notice demanding pay with interest and for F&F, mentioning you are resigning the job immediately if the pay not paid in 15days..... and ask them for full and final settlement....... it's the default of the employer, 4.5 months is unreasonable......
but, this is the biggest crisis of small business establishments. They fail in turnovers. When they get some project to work upon, employees start to leave for the same reason as yours, and they fail to afford the new employees..... this mostly happened because of their improper planning and also cost of extravaganzas they incur when their turnover was good, saving for the rainy is just the human concept rather corporate......

Legally speaking,by not paying your salary on time, your employers have violated the terms of employment and therefore you are free to leave with immediate effect. Once the terms have been violated, under the Indian contract act, The contract comes to an end and none of the terms hold true.
So, the only rights left under the contract of employment is that you have a right to take legal action a against them for non-payment of salaries.
In any case, is it likely best they are all going to be you and the balance salary? Do you think then they will be a that to you when you leave? Looking at the past history or even the current situation, it does not seem likely. So why bother to add here to their instructions on notice period? Just walk off to your new job and write off this as a bad experience.
Any company you join in future, just clearly tell the HR team that you left the previous company because they did not pay you five months salary and therefore you do not have leaving documents.

There are two issues, as I've understood. First, the payment of salaries for 4.5 months. Second, serving the notice period.
For the first you may seek legal recourse depending on what has transpired, your asking in writing and their response, so far.
For the second, isn't it the law that you have to serve the notice period? Its the company's decision whether it wants to waive off or adjust the notice period. You can't claim it as a right.
Suggest you fight your case on merits.
Warm regards,
Ajay Chaudhari

So, what you are saying is that, even though the company has not paid me salary for 4 months, and will never give me that amount, just because I was unlucky to have signed the employ,net contract with this company, I have to work another 2 months free of cost just because my appointment letter says 2 months notice period ?
This is neither logical nor what the law requires.
All contracts (including deemed contracts like employment) are based on consideration. Consideration means the amount of money payable for the services or for fulfilling any promise made. If the employer has not paid, or paid less than the contracted value, the consideration is not there and the agreement has no validity.
So, where the contract is invalid or inoperative due to default of one party, the other party is under no obligation to complete his part of the contract.

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