Umakanthan53
Labour Law & Hr Consultant
Nesri
Business

I used to work for a Multinational Firm as a permanent employee for almost 10 years in Middle Management. I was forced to resign in January this year based on my performance rating of previous.Company relieved me on the same day. I gave resignation with 3 Months notice as per my employment letter and with understanding from HR that full 3 Months salary will be paid but later reduced to 1 Month after submitting resignation which I refused to accept.

Company delayed F&F for almost 6 Months. In F&F company propose to pay 1 Month Salary and recovered 2 Months salary. After lot of argument over mail, company agreed to pay 1 Month Salary without any recovery. Gratuity and performance pay.

On my demand for 2 Months pay and compensation, the HR department claims that adequate notice has been given and 1 Month payout is given as per agreement. But there is no written or mail communication in this regard. Company now say that F&F was settled as per company record and warned to refrain from encroaching on the Company time further, failing which company will be constrained to take appropriate action against me.

I want to know from senior members that

1. Whether termination is illegal as I was not allowed to serve notice period.

2. Law under which such disputes are covered as I was in managerial cadre.

3. Whether I am right in demanding additional 2 months pay and compensation.

Please also advice on further course of action or drop the matter if I am wrong.
26th December 2016 From India, Noida
Dear NESRI,

1) The termination of your employment on the alleged resignation is illegal apart from your allegation of it being a forced one. By compulsion or otherwise when you've tendered your resignation that too prospectively in writing; hence it is very difficult to prove now that it was a forced one.

Coming to the part of your resignation as it is apparently, it is a prospective resignation that would be effective only from the future date mentioned therein irrespective of its actual date of acceptance by your employer. On the contrary, the Company has relieved you the same day of submission of your resignation and also refused to pay the salary for the notice period though you expressed your willingness to be in its service for 3 months. A resignation tendered to take effect from a future date will be inchoate state until the specified date expires. Here I would like to quote the following observation of the hon'ble High Court of Andra Pradesh in Coromandal Fertilizers Ltd. vs P.Venugopal [1986 (I) LLJ 417 ]:

" The letter of resignation is a 'form of an offer' by the employee and hence it is open to the management to accept or reject the same. But it is not open to the management to accept the resignation from a different date other than what was offered because such an acceptance would amount to counter-offer which again requires acceptance from the employee."

2) You have to file a Civil suit against the management for breach of the terms of the contract and claim damages.

3) Yes.
27th December 2016 From India, Salem
Sir,
Thank you for the insight. Two more things I would like to know
1. Any recent judgement or observation of court on such matters
2. Which laws are violated by the company. There are various laws like Contract labor act, Shop and Establishment act or Industrial Dispute act.
regards
16th February 2017 From India, Noida
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